Bailard Seeks Institutions for Long/Short REIT Strategy

FOSTER CITY, CA, May 18, 2007 - Bailard, Inc. announced today that it is seeking a small number of institutional investors for its market neutral long/short REIT strategy. Bailard is making this strategy available on a limited basis, in the form of a separate account.

To create the strategy, Bailard has coupled its knowledge of commercial real estate valuations with its skills in managing long/short equities. Lead portfolio manager, Dr. Dana Hobson brings significant expertise in the field of quantitative research and trading, and works in concert with Ron Kaiser, who has over thirty-five years of investment experience and a distinct perspective on real estate market principles.

Bailard believes the strategy may be viewed as complementary to an investment in commercial real estate, an alternative to long-only REITs, and/or attractive to those seeking uncorrelated alpha. Unlike many long/short REIT strategies with a long bias, this strategy seeks to minimize market exposure by being market neutral.

“Given the REIT market’s heady appreciation, we believe the potential beta reduction benefits of a market neutral portfolio of REITs should be especially attractive to a long-only institutional real estate investor.” said Dana Hobson, Senior Vice President of long/short quantitative research.

In order to maintain product quality, Bailard, is limiting capacity to an additional $100 million in assets. The strategy will be offered as a separate account with a 1 and 20% fee structure and investment minimums of $15 million. Like other investments, an investment in this strategy may lose money. In particular, since the strategy entails selling securities short, it involves risks in addition to those present in a typical long-only investment portfolio. Institutional investors seeking to learn more about the strategy can contact Ashley Lyon, V.P. of Business Development at Bailard, Inc. (650) 571-5800 or alyon@bailard.com.

About Bailard

Founded in 1969, Bailard offers innovative investment solutions for the unique needs of institutional and individual investors. From traditional investments to specialty products, Bailard puts its experience and passion for innovation to work in pursuit of intelligently designed products; solid, consistent results; and ever greater value for its clients. For more information, visit www.bailard.com.