MAL Malan Rlty Inv

Malan Realty Investors Announces Sale of Milwaukee Property; Partial Redemption Call for $5.0 Million of 9.5% Convertible Subordinated Debentures BINGHAM FARMS, Mich., March 4 /PRNewswire-FirstCall/ -- Malan Realty Investors, Inc. , a self-administered real estate investment trust (REIT), today announced it has completed the sale of a property in Milwaukee, Wisconsin. The property, with 117,791 square feet of gross leasable area, is located at 2701 S. Chase Avenue and contains a Chuck E. Cheese'sRestaurant. The property sold for approximately $2.6 million, after expenses. Malan also announced it is calling for redemption on April 14, 2004, $5.0 million of its 9.5% Convertible Subordinated Debentures due July 15, 2004. The portion of the Debentures being called will be redeemed at par, plus accrued but unpaid interest, and retired. The aggregate principal balance of the Debentures is currently $12.1 million. "We are pleased to reduce the balance on the Debentures prior to the redemption date later this year," said Jeffrey Lewis, president and chief executive officer of Malan Realty Investors. "With the size of our portfolio now below 2 million square feet, we expect to make additional sales throughout 2004 as we complete the liquidation." The portion of the Debentures to be redeemed will be selected by lot. The transfer books for the Debentures will be closed on March 15, 2004 for purposes of this selection process. The transfer books will be reopened on the next business day. The Debentures currently trade on the New York Stock Exchange under the CUSIP number 561063-AA-6001. Prior to 5:00 p.m., Eastern Time, on April 14, 2004, holders of Debentures called for redemption may convert their Debentures into shares of Malan common stock at a price of $17.00 per share, or approximately 58.82 shares per $1,000 principal amount of Debentures. Cash will be paid in lieu of fractional shares. On March 3, 2004, the closing price of Malan common stock on the New York Stock Exchange was $5.02 per share. Holders of Debentures called for redemption who do not convert their Debentures into Malan common stock will have such Debentures redeemed on April 14, 2004. Upon redemption, they will receive $1,023.49 per $1,000 principal amount of Notes (consisting of the redemption price of $1,000 plus accrued and unpaid interest thereon from January 15, 2004 up to but not including April 14, 2004 of $23.49). No further interest will accrue thereafter on Debentures called for redemption. A notice of redemption is being mailed to all registered holders of the Debentures, including, where applicable, information concerning the specific Debentures selected by lot for redemption. Copies of the notice of redemption may be obtained from The Bank of New York, the paying agent and conversion agent, by calling Roxane Ellwanger at (312) 827-8574. The address of The Bank of New York is 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602. Malan Realty Investors, Inc. owns and manages properties that are leased primarily to national and regional retail companies. In August 2002, the company's shareholders approved a plan of complete liquidation. The company owns a portfolio of 25 properties located in eight states that contains an aggregate of approximately 2.0 million square feet of gross leasable area. Safe Harbor Statement: This news release may contain forward-looking statements. Although the company believes that the statements and projections are based on reasonable assumptions, actual results may differ from those projected. Key factors that could cause actual results to differ materially include uncertainties regarding the length of time required to sell the company's properties and execute the plan of liquidation, expenses incurred during the liquidation period, the company's ability to retire or refinance its indebtedness as it comes due, its success in selling assets, the changing market conditions affecting the sale prices of its properties, the disproportionate effect of changes in proceeds from property sales on liquidating distributions due to the company's capital structure, economic downturns, leasing activities, bankruptcies and other financial difficulties of tenants, the cost of addressing environmental concerns, unforeseen contingent liabilities, other risks associated with the commercial real-estate business, and other concerns as detailed in the company's filings from time to time with the Securities and Exchange Commission. News releases for Malan Realty Investors are available on the company's Web site at http://www.malanreit.com/ or in the Company News section on the PR Newswire Web site at http://www.prnewswire.com/. DATASOURCE: Malan Realty Investors, Inc. CONTACT: Media Relations, John Roberson of Malan Realty Investors, +1-248-644-7110, or Fred Nachman of Marjan Communications Inc., +1-312-867-1771 Web site: http://www.malanreit.com/

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