ATAXZ Amer First Tax Exempt Inv L.P. (MM)

America First Tax Exempt Investors, L.P. ("the Partnership") (NASDAQ:ATAXZ) is providing the following update regarding income tax reporting and the distribution of Schedule K-1 to Beneficial Unit Certificate ("BUC") holders for the year ended December 31, 2005. As of the release of this update the Partnership expects K-1s to be mailed by March 31, 2006. On August 25, 2005, the Partnership announced that it had engaged a new transfer agent, American Stock Transfer and Trust Company ("AST"), and that transition of information from the prior transfer agent to AST would begin in October of 2005. The transition and conversion of BUC holder information from the prior transfer agent to AST has proven more problematic and time consuming than expected. This has delayed AST's ability to prepare Schedule K-1s for individual BUC holders. The Partnership has completed its U.S. Partnership tax return and provided the necessary information to AST in order to prepare individual K-1s. AST has assured the Partnership that as soon as information from the prior transfer agent is accurately converted and reconciled the individual K-1s will be prepared and mailed. Once AST has completed the preparation and mailing of the K-1s a link will be provided on the Partnership website to allow for viewing and printing of the actual K-1s issued. Instructions regarding how to retrieve your K-1 will be included on the website when the K-1s are available for retrieval. If individual BUC holders wish to estimate their K-1 income the Partnership has posted a table on its website that shows the monthly and annual breakdown of income for 2005 per BUC. This table was calculated from the Partnership's tax records as provided to the transfer agent for K-1 preparation. This tax information may be found by following the link provided at www.ataxz.com. America First Tax Exempt Investors, L.P. was formed for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of federally tax-exempt mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments. The Partnership is pursuing a business strategy of acquiring additional tax-exempt mortgage revenue bonds on a leveraged basis in order to: (i) increase the amount of tax-exempt interest available for distribution to its BUC holders; (ii) reduce risk through asset diversification and interest rate hedging; and (iii) achieve economies of scale. The Partnership seeks to achieve its investment growth strategy by investing in additional tax-exempt mortgage revenue bonds and related investments, taking advantage of attractive financing structures available in the tax-exempt securities market and entering into interest rate risk management instruments. America First Tax Exempt Investors, L.P. press releases are available on the World Wide Web at www.ataxz.com. Information contained in this Press Release contains "forward-looking statements" relating to, without limitation, future performance, plans and objectives of management for future operations and projections of revenue and other financial items, which can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology. Several factors with respect to such forward-looking statements, including certain risks and uncertainties, could cause actual results to differ materially from those in such forward-looking statements. Reference is hereby made to the filings of America First Tax Exempt Investors, L.P., with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and its annual report on Form 10-K.