ATAXZ America First Tax Exempt Investors, L.P.

America First Tax Exempt Investors, L.P. (the Partnership) is engaged in 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 properties. As of December 31, 2005, the Partnership owned 11 tax-exempt mortgage revenue bonds. The tax-exempt mortgage revenue bonds were issued by state and local housing authorities to provide for permanent financing of multifamily residential property and one student housing property. These properties are located in the states of Florida, Indiana, Iowa, South Carolina, Texas, Nebraska, Georgia and Kentucky and contain a total of 2,614 rental units. The Partnership is managed by its General Partner, America First Capital Associates Limited Partnership Two.