Berkshire Income Realty Announces FFO of $5,411,032 for Nine Month Period Ended September 30, 2008

Berkshire Income Realty, Inc.(“Berkshire” or the “Company”) reported its results for the periods ended September 30, 2008. Financial highlights for the three and nine-month periods include:

The Company’s Funds from Operations (“FFO”), a non-GAAP financial measure, for the three and nine months ended September 30, 2008 were $2,071,466 and $5,411,032, respectively, as compared to $2,259,707 and $4,235,769, respectively, for the three and nine months ended September 30, 2007. FFO for the nine months ended September 30, 2008 increased as compared to FFO for the nine months ended September 30, 2007. The increase is due mainly to an increase in Net Operating Income (“NOI”), a non-GAAP financial measure, of the properties, due to increased rental revenue in the period, which was partially offset by an increase in interest expense related to increased debt balances in the comparative nine month period ended September 30, 2008. FFO for the three month period ended September 30, 2008 decreased slightly as compared to FFO for the three month period ended September 30, 2007. The decrease is due mainly to a flattening of NOI of the properties for the quarter, due to mainly to increased operating expenses in the period. NOI for the three and nine months ended September 30, 2008 were $9,545,332 and $28,480,717, respectively, as compared to $9,543,210 and $26,884,407, respectively, for the three and nine months ended September 30, 2007.

For the nine month period ended September 30, 2008, Berkshire reported net loss, before depreciation (including depreciation reported as part of discontinued operations) and gain on sale of real estate assets (“Adjusted Net Income (Loss)”), a non-GAAP financial measure, of $(7,619,114) as compared to Adjusted Net Income (Loss) of $1,259,465 for the nine month period ended September 30, 2007. The decrease in Adjusted Net Income (Loss) was primarily due to a special distribution of $10,000,000 paid during the nine month period ended September 30, 2008 that the Company is required to recognize as an expense under GAAP. The net loss for the three and nine months ended September 30, 2008 was $(7,141,559) and $(4,944,515), respectively, as compared to net income (loss) of $(7,107,515) and $9,104,119, respectively, for the three and nine months ended September 30, 2007.

A presentation and reconciliation of GAAP net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to FFO, Adjusted Net Income (Loss), and NOI is set forth on pages 3 and 4 of this press release.

The Company continues to implement an investment strategy centered on the acquisition of quality properties, including those that may realize increases in value from major renovation activities, the development of properties and the renovation and rehabilitation of properties currently in its portfolio. Ongoing rehabilitation projects continue to generate improved operating results as evidenced by increased rent levels of newly renovated units placed back into service at the completion of the renovation. Additionally, the Company continues to consider ground up development projects as a supplement to its investment strategy as it continues with the development of a 143 unit garden style multifamily apartment community on land it had previously acquired for potential development purposes.

President and CFO, David Quade comments: “During the nine months ended September 30, 2008, notwithstanding the increasingly challenging state of the national economy, the NOI results of the Company’s portfolio achieved a 6% increase over the comparable nine-month period of 2007. Positive operating results through September 30, 2008 were primarily driven by strong rental income and solid occupancy levels at the majority of our properties. Although operating results remained positive through the quarter, we have begun to notice the effects of the softening economy which may lead to a moderating of rent growth and a reduction in qualified applicant inquiries at our properties. We have renewed our efforts to retain our current tenant base, and as a result, have experienced an increase in our tenant retention percentages. We believe our ability to react quickly to market conditions, both positive and negative trends, positions the Company to minimize any disruption in operating results as we navigate these uncertain economic times. During the most recently ended quarter, we continued our mission of creating value for our shareholders by redeploying capital realized from the sale of two properties earlier in the year with the acquisition of a quality high rise multifamily community in Philadelphia, Pennsylvania. The acquisition also represents the expansion into a new sub market for the Company.”

Non-GAAP Financial Measures

Funds from Operations

The Company has adopted the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO falls within the definition of a “non-GAAP financial measure” as defined in Rule 101 of Regulation G and Item 10(e) of Regulation S-K promulgated by the SEC. Management considers FFO to be an appropriate measure of performance of an equity REIT. We calculate FFO by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and adjustment for unconsolidated partnerships and ventures. Management believes that in order to facilitate a clear understanding of the historical operating results of the Company; FFO should be considered in conjunction with net income as presented in the consolidated financial statements included elsewhere herein. Management considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies.

The Company’s calculation of FFO may not be directly comparable to FFO reported by other REITs or similar real estate companies that have not adopted the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO is not a GAAP financial measure and should not be considered as an alternative to net income (loss), the most directly comparable financial measure of our performance calculated and presented in accordance with GAAP, as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income (loss) and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.