PRESS RELEASE

April 4, 2005

American University of Armenia Corporation
300 Lakeside Drive, 4th Floor
Oakland, CA 94612
Telephone: (510) 987-9452
Fax: (510) 208-3576

Contact: Gohar Momjian
E-mail: [email protected]

AUA Campus Grows, Acquires Hye Business Suites Hotel

Through the generosity of Mr. Vartkes Barsam, the American University
of Armenia Corporation (AUAC) acquired the Hye Business Suites
Hotel, located in central Yerevan, to complement its regional and
international student recruitment campaign. At its March 11, 2005
meeting, the Board of Trustees of the AUAC finalized the acquisition
of the Hye Business Suites, and resolved to rename the Suites to
the AUA Vartkes and Hasmig Barsam Building to honor their vision
and benevolence.

"Mr. Barsam has been a great supporter of the University on many
levels since AUA's inception 14 years ago. This is an extremely
positive and timely development for the AUA," stated AUA President,
Dr. Haroutune Armenian. "Essential to diversifying AUA's student
body, we are very pleased to be in a position to soon offer housing
to faculty and students in the AUA Vartkes and Hasmig Barsam Building."

During one of the most difficult periods in Armenia's recent history in
the early 1990's, Vartkes Barsam established the Hye Business Suites,
a quality hotel, which catered to business and international travelers,
and offered all of the expected western and hi-tech amenities of the
time. The Business Suites also set many construction and management
precedents for growth in Armenia's hospitality industry.

Through funding from USAID's American Schools and Hospitals Abroad,
AUA will be investing $300,000 to further renovate and upgrade
the building and its technological capacity. The Building will
continue to operate also as a hotel with office rental space. With
the Vartkes and Hasmig Barsam Building, AUA's facilities continue to
expand to meet the growing needs of the University. In addition to
the Baghramian building, AUA's current location for instruction, and
the AUA Business and Conference Center, construction on the Paramaz
Avedisian Building has begun, and the four buildings together will
compose the AUA campus, which is expected to attract an international
cadre of faculty and students.

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AUA is registered as a non-profit educational organization in both
Armenia and the United States and is affiliated with the Regents
of the University of California. Receiving major support from the
AGBU, AUA offers instruction leading to the Masters Degree in eight
graduate programs. For more information about AUA, visit www.aua.am
or www.aua-mirror.com.