MAL Malan Rlty Inv

Malan Realty Investors Announces Sale of Wood River Property; Completion of Debentures Redemption BINGHAM FARMS, Mich., June 3 /PRNewswire-FirstCall/ -- Malan Realty Investors, Inc. (NYSE:MAL), a self-administered real estate investment trust (REIT), announced it has sold its Wood River, Illinois property and completed the redemption of its convertible subordinated debentures. Wood River Plaza, located at 1501 Vaughan Road, is a 147,470 square-foot shopping center anchored by Wal-Mart. The purchaser of the property is Woodriver Partners, LLC. Gross cash proceeds to Malan from the transaction were approximately $5.9 million, which were used to pay down debt. The company completed the redemption of its convertible subordinated debentures on June 1, 2004. The final aggregate principal balance of its 9.5 percent Convertible Subordinated Debentures due July 15, 2004 was $7.1 million. The convertible subordinated debentures were issued as part of the company's initial public offering in 1994. "We are pleased to complete the sale of this property and the final redemption of the convertible subordinated debentures," said Jeffrey Lewis, president and chief executive officer of Malan Realty Investors. "With this sale and debt reduction, we have paid off approximately $110 million of company debt over the last year." Malan Realty Investors, Inc. is continuing to liquidate its assets and currently expects that no later than August 28, 2004, any then remaining assets and liabilities will be transferred to a liquidating trust. Each shareholder of Malan will automatically become the holder of one unit of beneficial interest in the trust for each share of Malan common stock, and all outstanding shares of Malan common stock will automatically be deemed cancelled. Malan Realty Investors will seek relief for the trust from registering the units under Section 12(g) of the Securities Exchange Act of 1934, as amended, and its obligation to file periodic reports. Subject to limited exceptions related to transfer by will, interstate succession or operation of law, the units will not be transferable nor will a unit holder have authority, opportunity or power to sell or in any other manner dispose of any units. As a result, the beneficial interests in the liquidating trust will not be listed on any securities exchange or quoted on any automated quotation system of a registered securities association. Shareholders who may need or wish liquidity with respect to their company common stock before the liquidating trust makes liquidating distributions should look into selling their shares while the common stock is still traded on an established market. 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 20 properties located in seven states that contains an aggregate of approximately 1.3 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 its plan of liquidation and expenses incurred during the liquidation period, changing market conditions affecting the sales price of the company's properties, the effect of changes in proceeds from property sales on liquidating distributions due to the company's capital structure, bankruptcies and other financial difficulties of tenants, the cost of addressing environmental concerns, unforeseen contingent liabilities, and other risks associated with the commercial real estate business, as detailed in the company's filings from time to time with the Securities and Exchange Commission. Many of these factors are beyond the control of the company. Malan does not undertake to update these forward-looking statements. 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: John Roberson, Media Relations, +1-248-644-7110, or Fred Nachman of Marjan Communications Inc., +1-312-867-1771, both for Malan Realty Investors, Inc. Web site: http://www.malanreit.com/

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