Lexington Strategic Asset Corp. Announces Sale/Leaseback Transaction for Car Dealership and Mortgage Loan on Adjacent Parcel

NEW YORK, Aug. 31, 2006 -- Lexington Strategic Asset Corp. ("LSAC"), a real estate company externally advised by a subsidiary of Lexington Corporate Properties Trust , announced that it acquired a car dealership in Tomball (Houston), Texas through a sale/leaseback transaction for a purchase price of approximately $14.5 million.

The facility consists of a two-story car dealership containing approximately 77,000 square feet on an approximately 15.9-acre parcel of land. Upon acquisition, the facility was leased back to Parkway Chevrolet, Inc. under a net lease that expires in August 2026. The obligations of Parkway Chevrolet, Inc. under the lease are secured by a letter of credit in the amount of approximately $2.5 million and are personally guaranteed by the ultimate principals of Parkway Chevrolet, Inc.

In connection with the acquisition, LSAC has arranged for non-recourse first mortgage financing in the original principal amount of approximately $9.5 million. The loan is expected to bear interest at a fixed rate of 6.06%.

LSAC also announced that it made an interest only mortgage loan in the original principal amount of approximately $1.8 million to J-R Boudreaux-249, L.P., the direct owner of Parkway Chevrolet, Inc. The loan is secured by an unimproved 5-acre parcel of land adjacent to the Parkway Chevrolet car dealership. The loan bears interest at 300 basis points over the one-month LIBOR, has a five year term and is cross-defaulted with the car dealership lease.

About LSAC

LSAC is a real estate company that invests directly and indirectly in general use properties with private or middle market type tenants, special purpose properties, non-U.S. properties located in the Americas with U.S. dollar denominated rent, and other specialized facilities or assets integral to the operations of its tenants.

LSAC is externally advised by LXP Advisory LLC, a subsidiary of Lexington Corporate Properties Trust. Lexington Corporate Properties Trust owns approximately 32% of the fully diluted outstanding shares of LSAC's common stock.

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements.