Arizona Land Announces Filing of Definitive Proxy Statement and January 14, 2008 Shareholders Meeting

  
    
  
  
    
      Arizona Land Income Corporation (AMEX: AZL), a real estate investment 
      trust, today announced that it has filed a definitive proxy statement 
      for its shareholders’ meeting scheduled for 
      January 14, 2008. In addition to routine matters normally presented for 
      consideration by shareholders at an annual meeting, shareholders will be 
      asked to approve transactions whereby AZL will acquire the West Coast 
      office portfolio of The Shidler Group, and reincorporate in Maryland 
      under the name Pacific Office Properties Trust, Inc. (“Pacific 
      Office Properties”).
    
    
      Under the agreement governing the transactions forming Pacific Office 
      Properties, ownership interests in nine office properties located in 
      Honolulu, San Diego and Phoenix with a gross asset value of 
      approximately $563 million will be contributed to an umbrella 
      partnership (“UPREIT”) 
      to be formed by AZL, in exchange for limited partnership interests in 
      the UPREIT and an unsecured promissory note in the principal amount of 
      $12 million. As part of the formation of the company, and in addition to 
      the previously announced subscription, Pacific Office Properties will 
      issue 180,000 shares of common stock at a negotiated price of $7.50 per 
      share and grant options to purchase up to 500,000 shares of common stock 
      at a price of $7.50 per share.
    
    
      Pacific Office Properties will be externally managed by Pacific Office 
      Management, Inc., an affiliate of The Shidler Group (“Pacific 
      Office Management”) and will own interests in 
      properties comprising 2.4 million square feet of office space. In 
      addition, Dallas E. Lucas, formerly Chief Financial Officer of Maguire 
      Properties, has been named Chief Executive Officer of both Pacific 
      Office Properties and Pacific Office Management.
    
    
      Thomas Hislop, CEO and Chairman of AZL, stated, “We 
      are very happy to present our shareholders with the opportunity to 
      approve the transaction we have structured with The Shidler Group. 
      Having worked with The Shidler Group’s 
      management team during this process, we are even more confident that 
      this transaction is in the very best interests of our shareholders.”
    
    
      Jay Shidler, founder of The Shidler Group and slated Chairman of the 
      Board of Pacific Office Properties stated, “We 
      are pleased to be approaching this important step in the transaction 
      process, the request for approval by the shareholders. We 
      enthusiastically look forward to implementing our business plan, which 
      we believe will maximize shareholder value for all of the existing and 
      future shareholders in AZL and Pacific Office Properties.”
    
    
      About Pacific Office Properties Trust
    
    
      Pacific Office Properties Trust will be a real estate investment trust, 
      which will acquire, own, and operate office properties in the western 
      U.S., focusing initially on the four high-growth markets of Honolulu, 
      San Diego, Los Angeles, and Phoenix.
    
    
      The Company will focus on acquiring, with institutional co-investors, “value-added” 
      office buildings whose potential can be maximized through improvements, 
      repositioning, and superior leasing and management. The Company will 
      continue The Shidler Group’s highly 
      successful institutional joint-venture operations, which focus on 
      acquiring opportunistic and value-added commercial real estate in 
      partnership with institutional co-investors.
    
    
      About Arizona Land Income Corporation
    
    
      Arizona Land Income Corporation is a real estate investment trust 
      headquartered in Phoenix, Arizona. It is externally advised by ALI 
      Advisors, Inc. and currently has a portfolio of real estate and other 
      assets aggregating approximately $4.2 million.
    
    
      About The Shidler Group
    
    
      The Shidler Group is a private long-term investor in commercial real 
      estate. Over the past 30 years, through its private and public 
      affiliates, it has acquired, owned and managed more than 2,000 
      properties containing over 150 million square feet of leaseable area. 
      Currently, The Shidler Group, through its affiliates, owns and manages 
      commercial properties in Honolulu, Los Angeles, San Diego and Phoenix, 
      and maintains offices in Honolulu, San Diego, Phoenix and New York. The 
      Shidler Group has founded three publicly traded real estate investment 
      trusts – Corporate Office Properties Trust 
      (NYSE: OFC), First Industrial Realty Trust (NYSE: FR), and Tri Net 
      Corporate Realty Trust (formerly, NYSE: TRI, now part of iStar Financial 
      (NYSE: SFI)). The Shidler Group also founded Primus Guaranty, Ltd. 
      (NYSE: PRS), a Bermuda-based holding company whose primary subsidiary, 
      Primus Financial Products, is a AAA/Aaa rated provider of credit default 
      protection.
    
    
      Credit Suisse Securities (USA) LLC is acting as financial advisor to The 
      Shidler Group, and Peacock, Hislop, Staley, & Given, Inc. is acting as 
      financial advisor to AZL. Barack Ferrazzano Kirschbaum & Nagelberg LLP 
      is serving as legal advisor to The Shidler Group, and Squire, Sanders & 
      Dempsey L.L.P. is serving as legal advisor to AZL.
    
    
      Additional Information and Where to Find 
      It
    
    
      This press release does not constitute a solicitation for votes for the 
      transaction. In connection with the proposed transaction, AZL has filed 
      a proxy statement regarding the proposed transaction with the Securities 
      and Exchange Commission. Shareholders are able to obtain a free copy of 
      the definitive proxy statement and other documents filed by AZL with the 
      SEC at the SEC's website at www.sec.gov. 
      The definitive proxy statement and other relevant documents are also be 
      available, free of charge, from AZL by directing such request to Ms. 
      Deanna Barela at [phone] or [e-mail]. 
      Shareholders are urged to read the proxy statement and other relevant 
      material before making any voting decisions with respect to the 
      transaction.
    
    
      AZL and its respective directors and executive officers may be deemed to 
      be participants in the solicitation of proxies from the shareholders of 
      AZL in connection with the transaction. Information about AZL and its 
      directors and executive officers, and their ownership of AZL common 
      stock, is set forth in the proxy statement, which was filed with the SEC 
      on December 13, 2007.
    
    
      Certain Information About Forward Looking 
      Statements
    
    
      Statements contained in this release except for historical information 
      are forward-looking statements that are based on current expectations 
      and involve risks and uncertainties. Without limiting the generality of 
      the foregoing, words such as “may,” 
      “will,” “expect,” 
      “believe,” “anticipate,” 
      “intend,” “could,” 
      “estimate,” or “continue,” 
      or the negative or other variations thereof or comparable terminology, 
      are intended to identify forward-looking statements. The risks and 
      uncertainties inherent in such statements may cause actual future events 
      or results to differ materially and adversely from those described in 
      the forward-looking statements. Specifically, there can be no assurance 
      that the parties will complete a strategic transaction on favorable 
      terms or at all. Important factors that may cause a difference between 
      projected and actual results for AZL are discussed in AZL’s 
      filings from time to time with the SEC, including but not limited to AZL’s 
      annual reports on Form 10-KSB, subsequent quarterly filings on Form 
      10-QSB and current reports on Form 8-K. AZL and The Shidler Group 
      disclaim any obligation to revise or update any forward-looking 
      statements that may be made from time to time by any of them or on their 
      behalf.