HOMBURG INVEST RECEIVES NON-BINDING PROPOSAL FROM CONTROLLING SHAREHOLDER

Board Establishes Independent Committee and Seeks to Appoint Independent Financial Advisor

HALIFAX, May 11 /CNW/ - (TSX: HII.A HII.B AEX:HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that its Board of Directors received a non-binding proposal (the "Proposal") from Richard Homburg and Homburg Canada Incorporated ("HCI") (a private company controlled by Mr. Homburg) to eliminate the control block in HII, internalize management and optimize the balance sheet, in accordance with the terms of their press release of today's date.  Mr. Homburg, through associated entities, is the controlling shareholder of HII.

The terms of the Proposal received would allow shareholders of HII to vote by class on the elimination of the dual class share capital structure through which Richard Homburg currently has voting control of HII. Richard Homburg has proposed to internalize HII's management by terminating the existing asset and property management agreement with HCI. An important part of the Proposal includes exploring alternatives to optimize the new entity's balance sheet. If implemented, it would result in the creation of a new publicly-listed entity.

The Board of Directors of HII has established an Independent Committee of the Board (the "Committee") to review the Proposal or any alternatives available to the Company.  The Committee has engaged independent legal counsel and will seek to engage an independent financial advisor to assist it in evaluating the Proposal and any eventual transaction.

"The Board of Directors and the Independent Committee will consider the Proposal carefully in the best interests of all stakeholders, including minority shareholders", said Michael Arnold, Chairman of the Board of HII.

Terms and conditions of the Proposal remain subject to negotiation and all required regulatory approvals. Any agreed transaction resulting from the Proposal will be communicated to shareholders of HII in due course. There can be no assurance that an agreed transaction will result from this Proposal, and terms and conditions of an agreed transaction could vary from those contemplated by the Proposal.

HCI is a private company that is distinct from publicly traded Homburg Canada Real Estate Investment Trust, which is not a party to the Proposal.

About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops a diversified portfolio of quality real estate including office, retail, industrial and residential apartment and townhouse properties throughout Canada, the United States and Europe.

This news release may contain statements which by their nature are forward looking and express the Company's beliefs, expectations or intentions regarding future performance, future events or trends. Forward looking statements are made by the Company in good faith, given management's expectations or intentions however, they are subject to market conditions, acquisitions, occupancy rates, capital requirements, sources of funds, expense levels, operating performance and other matters. Therefore, forward looking statements contain assumptions which are subject to various factors including: unknown risks and uncertainties: general economic conditions; local market factors; performance of other third parties; environmental concerns; and interest rates, any of which may cause actual results to differ from the Company's good faith beliefs, expectations or intentions which have been expressed in or may be implied from this news release. Therefore, forward looking statements are not guarantees of future performance and are subject to known and unknown risks. Information and statements in this document, other than historical information, should be considered forward-looking and reflect management's current views of future events and financial performance that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions and developments within the real estate industry, competition and the management of growth. The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

SOURCE HOMBURG INVEST INC.

For further information:

Paul de la Plante
NATIONAL Public Relations
514 843-2332

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HOMBURG INVEST INC.

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