CHICAGO, Jan. 17 /PRNewswire-FirstCall/ -- Manufactured Home Communities, Inc. (NYSE: MHC) today announced that it will pay $201,000 to resolve litigation with the DeAnza Santa Cruz Homeowners Association (HOA). In December 2001, the California Court of Appeal for the Sixth Appellate District reversed a $6.0 million punitive damage award against the Company. The HOA was allowed to and did seek a new trial in the dispute. This payment resolves the punitive damage claim and related claim.

The litigation was previously disclosed in the footnotes of the Company's financial statements. In addition, MHC reaffirms that projected FFO for the full year 2002 will range from $2.48 to $2.52 per share.

Manufactured Home Communities, Inc. owns or has a controlling interest in 141 quality communities in 22 states consisting of 51,293 sites. MHC is a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago.

SOURCE Manufactured Home Communities, Inc.