Press Release

Wells Real Estate Funds Launches Timberland REIT

Industry's First Public, Nontraded Timberland Investment Vehicle to be Offered through Financial Professionals

NORCROSS, Ga. (May 2, 2007) - Wells Real Estate Funds Inc. today announced the launch of the Wells Timberland Real Estate Investment Trust, the first public, nontraded REIT investing in timberland.

"This new expansion of our product family fits with our focus on offering the individual investor the opportunity to invest in quality real estate," said Leo Wells, founder and president of Wells Real Estate Funds. "Professionally managed timberland is a potentially attractive type of commercial real estate - but historically, it has been almost entirely for institutional investors. We're helping to change that."

Wells Timberland REIT will seek to generate revenue and income through the sale of timber harvesting rights, as well as leasing land-use rights and, in some cases, the eventual sale of land for higher and better use.

Jess Jarratt, a veteran forester and finance executive, has joined Wells as chief timberland officer and president of Wells Timberland Investment Management Organization.

"Timberland is a distinct asset class, and as with our other REITs, we'll seek to build a diverse portfolio for our investors - in this case, by geography, age and timber type," Jarratt said. "Another attractive feature about timber is that it's an ecologically sound, renewable resource - after harvesting, you can plant again and literally grow new resources."

Jarratt most recently was managing director, structured real estate, for SunTrust Robinson Humphrey. His previous positions include timberland investment officer with John Hancock. He holds a B.S. in Forestry from Texas A&M and an M.B.A. in Finance from the University of North Texas.

Wells Timberland REIT is designed to offer portfolio diversification, current income through the payment of distributions, and potential capital appreciation upon the ultimate sale of assets. Over its lifetime, the fund will acquire and invest largely in geographically diverse timberland properties in U.S. timber-producing regions, including the Appalachian, Great Lakes, Northeast, Northwest and Southeast regions. The Timberland REIT also may invest in timber-growing regions internationally.

The fund will be offered to investors through financial professionals.

Wells Real Estate Funds is a national real estate investment company based in suburban Atlanta. Since its founding in 1984, Wells has invested more than $9 billion in real estate for more than 200,000 investors. Wells funds include REITs, mutual funds and other commercial real estate investment vehicles. For more information, see www.wellsref.com.

For more information, visit Wells online at www.wellsref.com.

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. For SEC filings: www.sec.gov.