MONTREAL, QUEBEC -- (MARKET WIRE) -- 10/10/2006 -- The Board of Trustees of Alexis Nihon REIT (TSX: AN.UN) today announced it has created a special committee to plan and oversee the search for a new chief executive officer to replace Paul J. Massicotte, who has indicated his intention to retire as President and CEO in early 2007.

"Since 1985, when I became President of Alexis Nihon Group, I have found my position to be fulfilling, challenging and rewarding," Mr. Massicotte said. "Now, having led the company through strong growth and its reorganization into a REIT, I would like to focus on other interests."

Mr. Massicotte cited in particular his duties as a member of the Senate of Canada and his ownership of Attractions Hippiques Quebec Inc., which will shortly own and manage the four equestrian racetracks in the province.

"While I will no longer be involved in the day-to-day management of the REIT when I retire from this position, I will continue to serve on the Board of Trustees," Mr. Massicotte added. "I will also work with the new CEO and the REIT to ensure a seamless transition."

"I still hold 12% of the outstanding units of the REIT, which constitute a substantial segment of my net worth. I therefore have a strong interest in maintaining the smooth functioning of the REIT."

"Going forward, Alexis Nihon's outlook is very positive," Mr. Massicotte said. "The REIT is generating consistent and reliable cash flow, we enjoy a solid financial position and the commercial real estate markets in Montreal and Ottawa are healthy and strong."

Robert A. Nihon, Chairman of the REIT, said: "Senator Massicotte has served our organization long and well, and its prosperity and growth is due in large measure to his vision and leadership. His commitment to assist the new CEO will greatly facilitate the transition to new leadership."

About Alexis Nihon REIT

The REIT currently owns interests in 65 office, retail, and industrial properties, including a 426-unit multi-family residential property, all located in the greater Montreal area and the National Capital region. The REIT's portfolio has an aggregate of 9.1 million square feet of leasable area, of which 0.4 million square feet is co-owned.