The purchase price under the Offer represents a 20% premium over Legacy�s 30-day average trading price on the Toronto Stock Exchange (the �TSX�) on February 28, 2007, the last trading day prior to Legacy announcing the formation of its Special Committee to explore strategic alternatives.

Following a thorough review of the Trust�s strategic alternatives, and recommendation of the Special Committee, Legacy�s Board of Trustees has unanimously approved the transaction and unanimously recommends that the Trust�s unitholders tender their units to the Offer. Fairmont Hotels & Resorts Inc., Legacy�s largest unitholder representing 20.4% of the outstanding voting rights, has entered into a lockup agreement with the Offeror to tender its entire ownership interest in Legacy to the Offer.

Under the terms of a post acquisition reorganization, Legacy�s portfolio of assets will generally be allocated with Cadbridge owning the large Fairmont managed hotels and InnVest owning primarily Delta hotels.

�The proposed transaction reflects our commitment to deliver value to our unitholders,� stated Neil J. Labatte, Legacy�s President and Chief Executive Officer. �Over the ten years since our formation, we have assembled an unmatched portfolio of luxury and first-class hotels. We believe the price offered by the Offeror fairly reflects the underlying value of these assets. Cadim, Westmont and InnVest are well-respected investors with a strong track record in the lodging industry.�

Fernand Perreault, Executive Vice-President, Real Estate of Caisse de dépôt et placement du Québec added, �This acquisition provides us with an important ownership platform in this industry, combining talented people, well-known brands and an irreplaceable collection of hotel real estate. We look forward to working with management and the hotels.� Kenneth Gibson, President and Chief Executive Officer of InnVest, commented, �Legacy�s portfolio consists of a diversified collection of well-branded hotel assets. We are thrilled to have the opportunity to purchase these quality assets and establishing InnVest as the largest hotel REIT in Canada.�

The Support Agreement allows Legacy to pay its regular quarterly distribution for the quarter ended June 30, 2007, as previously announced on June 20, 2007, and for Legacy to continue to pay its quarterly distribution, prorated through the closing of the transaction. The Trust may terminate the Support Agreement under certain circumstances upon payment to the Offeror of a break-up fee of $46 million.

A take-over bid circular, containing the terms and timing of the Offer, will be mailed to unitholders in the next few weeks, together with a Trustees� Circular that will provide further details concerning Legacy's strategic alternative review process. Once mailed, the take-over bid circular and the Trustees� Circular will be available on the Canadian Securities Administrators� System for Electronic Document Analysis and Retrieval (�SEDAR�) website at www.sedar.com.

The Offer will be subject to customary conditions, including the tender to the Offer of a sufficient number of units that will result in the Offeror owning at least 66?% of the outstanding units, obtaining required regulatory approvals and the absence of a material adverse effect. If a sufficient number of units to meet the minimum tender condition are tendered to the Offer, the Offeror has agreed to use all commercially reasonable efforts to acquire the remaining units through a subsequent acquisition transaction or compulsory acquisition.

Morgan Stanley and RBC Capital Markets acted as financial advisors to Legacy. Avington acted as financial advisor to Cadbridge and InnVest. Legacy�s Board of Trustees has received an opinion from each of Morgan Stanley, RBC Capital Markets and BMO Capital Markets that the consideration under the Offer is fair from a financial point of view to the unitholders of Legacy.

Legacy Portfolio

Property	Location	Year Acquired	Total Rooms	Square Footage of Meeting Space
Delta Barrington	Halifax, NS	1999	200	5,000
Delta Beauséjour	Moncton, NB	1997	310	22,500
Delta Bessborough	Saskatoon, SK	1998	225	20,200
Delta Bow Valley	Calgary, AB	2006	394	13,000
Delta Calgary Airport	Calgary, AB	1997	296	13,000
Delta Centre-Ville	Montreal, PQ	1998	711	33,000
Delta Halifax	Halifax, NS	1997	296	9,000
Delta Ottawa Hotel and Suites	Ottawa, ON	1998	328	11,600
Delta Prince Edward	Charlottetown, PE	1997	211	24,000
Delta Toronto Airport West	Mississauga, ON	1999	297	14,200
Delta Toronto East	Toronto, ON	1999	368	22,000
Delta Winnipeg	Winnipeg, MB	2000	393	18,100
Fairmont Château Laurier	Ottawa, ON	1997	429	32,800
Fairmont Le Château Frontenac	Quebec City, PQ	2001	618	22,900
Fairmont The Queen Elizabeth	Montreal, PQ	1997	1,039	46,500
Sheraton Suites Calgary Eau Claire	Calgary, AB	2001	323	10,000
The Fairmont Empress	Victoria, BC	2001	477	12,400
The Fairmont Hotel Macdonald	Edmonton, AB	1997	199	10,200
The Fairmont Hotel Vancouver	Vancouver, BC	1997	556	37,000
The Fairmont Olympic Hotel	Seattle, WA	2003	450	26,400
The Fairmont Palliser	Calgary, AB	1997	405	22,700
The Fairmont Royal York	Toronto, ON	1997	1,365	66,800
The Fairmont Washington D.C.	Washington, DC	2002	415	28,000
The Fairmont Waterfront	Vancouver, BC	1997	489	24,000
The Fairmont Winnipeg	Winnipeg, MB	2000	340	20,000
			11,134	565,300

This news release contains forward-looking information related to, but not limited to, Legacy operations, anticipated financial performance, business prospects and strategies. Forwardlooking information typically contains statements with words such as �anticipate�, �believe�, �expect�, �plan� or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, but are not limited to economic, competitive and lodging industry conditions. Please refer to Legacy�s Annual Information Form, dated March 27, 2007, which can be found on the SEDAR website at www.sedar.com, for a list of the risks inherent in the activities of the Trust. All statements in this news release are qualified by such cautionary
statements. These statements are made as of the date of this news release and except as required by applicable law, Legacy disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

About Legacy Hotels Real Estate Investment Trust

Legacy is the largest Canadian lodging real estate investment trust, focused on the ownership of luxury and first-class hotels. With a presence across Canada and in two top U.S. markets, Legacy�s portfolio of 25 hotels provides geographical diversification across major urban centres.

The portfolio includes landmark properties such as Fairmont Le Château Frontenac, The Fairmont Royal York, The Fairmont Empress and The Fairmont Olympic Hotel, Seattle. Legacy units trade on the Toronto Stock Exchange under the symbol LGY.UN.

About the Caisse de dépôt et placement du Québec and Cadim

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2006, it held CA$143.5 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.lacaisse.com.

Cadim, a division of the Caisse de dépôt et placement du Québec and a member of the Caisse's Real Estate Group, is a global real estate investment manager. Cadim invests in a diversified range of equity and financing products through a network of affiliates and prominent partners in the United States, Europe and Asia. Cadim is an opportunistic investor whose success relies on its capacity to close large-scale transactions and to take advantage of key leverage opportunities.

As at December 31, 2006, total assets under management totalled $36.3 billion.

About Westmont Hospitality Group

Westmont is one of the largest private owners of hotels in the world, owning and/or managing over 400 hotels globally with operations in North America, Europe and Asia.

About InnVest Real Estate Investment Trust

InnVest Real Estate Investment Trust holds Canada�s largest hotel portfolio together with an interest in Choice Hotels Canada Inc., the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 135 hotel properties with over 15,000 guest rooms, operated under internationally recognized franchise brands. InnVest�s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A and INN.DB.B, respectively.

Legacy:
Chantal Nappert
Executive Director, Investor Relations
Tel: 416-860-6140
Email: [email protected]
Website: www.legacyhotels.ca

Caisse de dépôt et placement du Québec:
Annie Vallières
Media Relations
Caisse de dépôt et placement du Québec
Tel: 514-847-5493
Email : [email protected]