Press Release

Wells Real Estate Funds Leases 4M Square Feet in 2006

Office sector continues to show strength

NORCROSS, Ga. (Jan. 31, 2007) - Wells Real Estate Funds, one of the nation's top 10 office landlords, signed more than 4 million square feet in new and renewal leases in 2006, the company's most active leasing year ever.

Major deals for Wells included renewals for the Leo Burnett Company and law firm Winston & Strawn to anchor the 1.1-million-square-foot Leo Burnett Building in Chicago; a renewal for Nestlé USA at the 505,000-square-foot Nestlé Building in Glendale, Calif.; a 167,000-square-foot lease renewal for Polo Ralph Lauren in Lyndhurst, N.J.; and more than 120,000 square feet for Edelman, the worldwide public relations firm, at Chicago's Aon Center.

"It was a good year for high-quality, Class-A office properties in 2006," said Leo Wells, president of Wells Real Estate Funds. "With job creation and economic growth, we saw top companies continuing to look for prime locations."

Wells seeks to diversify its office portfolios not only by geography, tenant and industry, but also by lease terms. "We had numerous tenants last year seeking lengthy renewals - into the 2020s in some cases," said Don Henry, managing director, asset management. For instance, Winston & Strawn renewed in Chicago to 2024.

Wells acquired more than $900 million in office and industrial properties in 2006, totaling more than 4.8 million square feet. Major acquisitions included 80 Park Plaza in Newark, N.J., the 1-million-square-foot headquarters of utility PSG&E; Gallagher Centre, a 487,000-square-foot luxury office tower in suburban Chicago; and the International Financial Tower, a 630,000-square-foot office tower in the "Wall Street West" district of Jersey City, N.J.

Wells' portfolios, including Wells Real Estate Investment Trust (Wells REIT) and Wells Real Estate Investment Trust II (Wells REIT II), now include more than 39 million square feet of space in 168 buildings, primarily Class-A office properties, geographically diversified across 28 states and Washington, D.C. The combined portfolios are 96 percent leased.

Wells Real Estate Funds (www.wellsref.com), founded in 1984, 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. More than 200,000 individuals across the country have, through their financial representatives, invested in Wells-sponsored programs to help diversify their investment portfolios. Collectively, Wells programs own more than $9 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. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers of this press release should be aware that there are various factors that could cause actual results to differ materially from any forward-looking statements made in this release. Factors that could cause or contribute to such differences include, but are not limited to, changes in general economic and business conditions, industry trends, changes in government rules and regulations (including changes in tax laws), and increases in interest rates. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Wells REIT is closed to new investors. This is neither an offer nor a solicitation to purchase securities. Such an offer can be made only by prospectus. For a prospectus, contact Wells Investment Securities, Inc., 6200 The Corners Pkwy., Norcross, Ga. 30092-3565 (tel. 800-448-1010). SEC filings: www.wellsref.com/investmentproducts/reit/secfilings.html.

EDITORS NOTE: Don Henry, Wells' managing director of asset management, is available for interviews on office and leasing trends. Photography of Wells properties also is available.