Press Release

Wells Real Estate Funds Attracts $1.56B in Investments in 2005

Investor dollars increased 30 percent over '04

Leo Wells: "Investors interested in commercial real estate"

NORCROSS, Ga. (February 2, 2006) - Wells Real Estate Funds attracted $1.56 billion in investments in 2005 across its offerings, including its current Wells REIT II - 30 percent over $1.2 billion the previous year, the company announced.

Meanwhile, Wells funds acquired some $1.6 billion in commercial real estate in 2005, up from $1.4 billion in 2004. Major acquisitions included University Circle in East Palo Alto, Calif., 100 East Pratt in Baltimore; 5 Houston Center and, in an ownership stake with the Jacobs Group, Key Center in Cleveland.

Wells portfolios, including Wells Real Estate Investment Trust (Wells REIT) and Wells Real Estate Investment Trust II (Wells REIT II), now include more than 35 million square feet of space in 163 buildings, primarily Class-A office properties, geographically diversified across 28 states and Washington D.C. Of tenants with credit ratings from services such as Moody's Investors Service or Standard & Poor's, the weighted average is "A+," in the case of REIT I, and BBB+, in the case of REIT II. The combined REIT and REIT II portfolios are more than 95 percent leased.

"Individual investors continue to be interested in commercial real estate, for income and diversification," said Leo Wells, president of Wells Real Estate Funds. "I believe more and more investors really are starting to recognize investment real estate as their fourth `asset class.' "

Wells funds also, as part of their strategic portfolio management, sold $824 million in assets in 2005, in many cases locking in gains for investors - including the $786 million sale of 27 office and industrial properties, chiefly by Wells REIT, the largest such transaction by a nontraded REIT.

Wells Real Estate Funds (www.wellsref.com) is a national real estate investment management company, based in suburban Atlanta, which purchases and manages real estate on behalf of Wells-sponsored investment programs. Leo Wells founded the company in 1984; since then, more than 200,000 individuals across the country have, through their financial representatives, invested in Wells-sponsored investment programs to help diversify their investment portfolios. Collectively, Wells-sponsored programs own approximately $7 billion in assets, based on purchase price.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including discussions regarding Wells' use of proceeds and certain other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include changes in general economic conditions, changes in real estate conditions, construction delays, increases in interest rates, lease-up risks, lack of availability of financing, and lack of availability of capital proceeds. This is neither an offer nor a solicitation to purchase securities. Such an offer can be made only by prospectus. To obtain a prospectus, please contact Wells Investment Securities, Inc., 6200 The Corners Parkway, Norcross, GA 30092-3365 (tel. 800-448-1010, www.wellsref.com).