TIMBERCREEK INVESTMENTS ANNOUNCES Q1 AND Q2 OPERATINGRESULTS AND DISTRIBUTION

July 8th Toronto, ON –Timbercreek Investments Inc. is pleased to announce financialresults for the period ended June 30, 2003, as well as the Q1 and Q2semi-annual distribution.

The Board of Directors hasapproved a gross distribution for Q1 and Q2, net of all operating expenses, of8%. After all offering costs all Class B security holders will receive anannualized cash distribution of 7.11%.

Timbercreek Investmentsfirst and second quarter operating revenues increased to $2.84 million from$1.49 million at June 30 2002, growth of 191%. Book value of Timbercreek assetsat June 30, 2003 are $56.7 million, compared to $21.1 million at June 30, 2002.

Net operating marginsincreased from approximately 52% to 54%. This growth was tempered by anincrease in both the price of gas and the consumption of gas and hydro due tothe exceptionally cold winter. Fixed operating expenses as a percentage ofoperating income held relatively stable year-over-year at 27.94%. The increasedconsumption was offset by Hydro Ontario’s decision to cap electricity costs at$0.43 per kilowatt, and our decision to invest in new boilers in a number ofbuildings that required replacement rather than entering new leasing agreements.

Net income increased to$698,000 from $274,000 for the same period last year.

Firstand Second Quarter Activities

Timbercreek InvestmentsInc. continues to execute on it’s objective of creating a strong, diverseportfolio of multi-family real estate assets. The portfolio was expanded overthe period with the acquisition of 1549 Trossacks Avenue, London ON and 100 –300 Macdonald Street in Aurora

ON.The two acquisitions have a combined book value of $25.9 million. Both assetshave been assimilated into the portfolio and are being operated by theTimbercreek property management team.

Timbercreek has alsorefinanced 420 Dufferin Avenue, London ON. The previous 3 year 7.79% mortgagehas been replaced with 5 year debt at 5.32%. The asset was refinanced at 70%loan-to-value, with the $265,000 equity take-out being re-invested in the portfolio.

GoingForward

We anticipate continuedgrowth in the third and fourth quarter of 2003 and beyond, and are pleased tobe able offer our investors the continued opportunity to diversify theirportfolio, and generate substantial returns. We anticipate that the portfoliowill reach a book value of $80 - $100 million by year-end.

Operationally, we do notanticipate any adverse effects in the third and fourth quarters. Our portfoliois located in stable areas, which are not subject to the turbulent marketconditions that are being seen in the downtown Toronto area. We will continueour plan of refurbishment and upgrades of the suites and common areas ofportfolio assets as they are required. Timbercreek will also continue toimplement value creation projects that management feels will maximize rentalincome on a portfolio wide basis.

The Company philosophy, adescription of management, and more detailed information on our securities canbe found on our website; www.timbercreekinvestments.com.The site also provides further information regarding our properties, and theirrespective markets.

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