⁽²⁾ Investors in and analysts following the real estate industry utilize net operating income (“NOI”) as a supplemental performance measure. NOI is derived from revenues (determined in accordance with GAAP) minus property operating expenses and real estate taxes (determined in accordance with GAAP). NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income. Net income includes interest and depreciation and amortization which often have no effect on the market value of a property and therefore limit its use as a performance measure. In addition, such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset. The Company believes that net operating income is helpful to investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. The Company uses NOI as a key management tool when evaluating performance and growth of particular properties and/or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization and non-property specific expenses such as general and administrative expenses, all of which are significant costs, and therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.

This press release contains various “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. The words “will,” “may,” “could,” “expect,” “anticipate,” “believes,” “intends,” “should,” “plans,” “estimates,” “approximate”, “guidance” and similar expressions identify these forward-looking statements. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These risks and uncertainties may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include the ability of manufactured home buyers to obtain financing, the level of repossessions by manufactured home lenders and those referenced under the headings entitled “Factors That May Affect Future Results” or “Risk Factors” contained in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in the Company’s expectations of future events.

SUN COMMUNITIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007

(Amounts in thousands except for per share data)

(Unaudited)

	2008			2007
REVENUES
Income from real property	$	50,553		$	49,466
Revenue from home sales		7,503			6,150
Rental home revenue		4,996			4,439
Ancillary revenues, net		226			263
Interest		805			789
Other income		871			250
Total revenues		64,954			61,357

COSTS AND EXPENSES
Property operating and maintenance		12,361			11,946
Real estate taxes		4,169			4,098
Cost of home sales		5,839			4,924
Rental home operating and maintenance		3,466			3,140
General and administrative - real property		4,172			4,385
General and administrative - home sales and rentals		1,612			1,658
Depreciation and amortization		16,005			15,350
Interest		15,380			15,169
Interest on mandatorily redeemable debt		844			917
Total expenses		63,848			61,587
Equity income (loss) from affiliate		(4,830	)		307
Income (loss) before income tax and minority interest		(3,724	)		77
Less: Provision (benefit) for state income taxes		(235	)		25
Income (loss) from operations		(3,489	)		52
Less: Income (loss) allocated to minority interest		(394	)		6
Net income (loss)	$	(3,095	)	$	46

Weighted average common shares outstanding:
Basic		18,077			17,841
Diluted		18,077			17,985

Basic and diluted net income (loss) per share:	$	(0.17	)	$	0.00

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007

(Amounts in thousands except for per share data)

(Unaudited)

	2008					2007
Net income (loss)	$	(3,095	)	⁽³	⁾	$	46
Adjustments:
Depreciation and amortization		16,449					15,572
Valuation adjustment ⁽⁴⁾		—					(122	)
Provision for state income tax ⁽⁵⁾		(389	)				—
Gain on disposition of assets, net		(1,542	)				(2	)
Income (loss) allocated to minority interest		(394	)				6
Funds from operations (FFO)	$	11,029				$	15,500

Weighted average common shares/OP Units outstanding:
Basic		20,379					20,143
Diluted		20,436					20,287

FFO per weighted average Common Share/OP Unit - Basic	$	0.54				$	0.77
FFO per weighted average Common Share/OP Unit - Diluted	$	0.54				$	0.76

⁽³⁾ Net loss for the three months ended March 31, 2008 includes a $4.8 million equity loss from affiliate (Origen). The table below is adjusted to exclude this amount:

	2008
Net income (loss) as reported	$	(3,095	)
Equity loss from affiliate adjustment		4,830
Adjustment to loss allocated to common minority interest		(545	)
Adjusted net income	$	1,190
Depreciation and amortization		16,449
Valuation adjustment		—
Provision for state income tax		(389	)
Gain on disposition of assets, net		(1,542	)
Income allocated to common minority interests		151
Adjusted Funds from operations (FFO)	$	15,859
Adjusted FFO per weighted avg. Common Share/OP Unit - Diluted	$	0.78

⁽⁴⁾ The Company had an interest rate swap, which matured in July 2007, which was not eligible for hedge accounting. Accordingly, the valuation adjustment (the theoretical non-cash profit or loss if the swap contract were to be terminated at the balance sheet date) was recorded in interest expense. If held to maturity the net cumulative valuation adjustment would approximate zero. The Company had no intention of terminating the swap prior to maturity and therefore excluded the valuation adjustment from FFO so as not to distort this comparative measure.

⁽⁵⁾ This tax provision represents the reversal of potential future state taxes payable on sale of company assets added back to FFO in a prior period.

SUN COMMUNITIES, INC.

SELECTED BALANCE SHEET DATA

(Amounts in thousands)

	(Unaudited) March 31, 2008		December 31, 2007
Investment property before accumulated depreciation	$	1,543,398	$	1,538,426
Total assets	$	1,233,197	$	1,245,823
Total debt	$	1,191,635	$	1,187,675
Total minority interests and stockholders’ equity	$	8,531	$	26,046

SUN COMMUNITIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007

(Amounts in thousands)

(Unaudited)

	2008			2007
Net income (loss)	$	(3,095	)	$	46
Unrealized loss on interest rate swaps		(1,416	)		(254	)
Comprehensive loss	$	(4,511	)	$	(208	)

SUN COMMUNITIES, INC.

ADDITIONAL INFORMATION

SAME PROPERTY RESULTS

For 135 communities owned throughout both years (amounts in thousands):

	Three Months Ended March 31,
	2008		2007		% change
Total revenue	$	48,227	$	47,326	1.9	%
Total expense		13,511		13,230	2.1	%
Net operating income⁽²⁾	$	34,716	$	34,096	1.8	%

Same property occupancy and average monthly rent information at March 31, 2008 and 2007:

	2008			2007
Total manufactured housing sites		42,135			42,114
Occupied manufactured housing sites		34,705			34,974
Manufactured housing occupancy %		82.4	%		83.0	%
Average monthly rent per site	$	385		$	374

RENTAL PROGRAM SUMMARY

	Three Months Ended March 31,
	2008		2007
Rental home revenue	$	4,996	$	4,439
Site rent included in Income from real property		5,981		5,065
Rental program revenue		10,977		9,504
Expenses
Payroll and commissions		523		493
Repairs and refurbishment		1,523		1,432
Taxes and insurance		691		581
Other		729		634
Rental program operating and maintenance		3,466		3,140
Net operating income ⁽²⁾	$	7,511	$	6,364

Occupied rental homes information at March 31, 2008 and 2007 (in thousands except for *):

	2008		2007
Number of occupied rentals, end of period*		5,442		4,860
Cost of occupied rental homes	$	164,712	$	144,215
Weighted average monthly rental rate*	$	722	$	697