EVEREST
199 S LOS ROBLES AVE
SUITE 200
PASADENA CA 91101
TEL: 626-585-5920
FAX: 626-585-5929


May 9, 2006


TO HOLDERS OF UNITS OF
AMERICAN REPUBLIC REALTY FUND I

     Re: Offer to Purchase Units for $300 Per Unit - Highest Price Ever Offered

Dear Unit Holder:

     Enclosed  is an  OFFER  TO  PURCHASE  your  Units  of  limited  partnership
interests  in  AMERICAN  REPUBLIC  REALTY FUND I (the  "Partnership")  at a cash
purchase  price  of  $300  per  Unit,  without  interest,  less  the  amount  of
distributions made to you after the date of the Offer and less any transfer fees
imposed by the Partnership for each transfer,  which the Partnership  advises us
are $75 per transfer (regardless of the number of units transferred).

     Please consider the following points, which are discussed in greater detail
in the accompanying Offer to Purchase:

     o    The  Offer  is  $75  per  Unit  (33%)  more  than  the  highest  prior
          third-party offer for Units of which Purchaser is aware.

     o    The Units are  illiquid.  There is very  little,  if any,  trading  of
          Units. For at least the last two years, offers like this one have been
          the main source of  opportunities  to sell your Units.  There is never
          any certainty if or when you may receive another offer for your Units.

     o    The Partnership  will not be required to terminate before December 31,
          2012,  unless a majority  of the limited  partners  approve an earlier
          dissolution  or an event  occurs  that  would  require a  dissolution,
          according to the Partnership's  limited  partnership  agreement,  and,
          according to the  Partnership's  public reports,  the termination date
          can be extended if certain events occur.

     We urge you to read the Offer to  Purchase  completely  and to return  your
completed  Agreement of Transfer and Letter of Transmittal  promptly (blue form)
in the envelope provided.

     The Offer is  scheduled  to  expire on June 9,  2006.  For  answers  to any
questions you might have regarding  these  materials or our Offer, or assistance
in the  procedures  for  accepting our Offer and  tendering  your Units,  please
contact us at (800) 611-4613 (toll free).

                                                Very truly yours,

                                                EVEREST MANAGEMENT, LLC