Arizona Land Income Corporation Knows No Reason for the Recent Increase in Its Stock Price

  
    
  
  
    
      Arizona Land Income Corporation (AMEX: AZL) has noticed the recent 
      run-up in the market price of its common stock and has no explanation 
      for such increase. Thomas R. Hislop, Chief Executive Officer and 
      Chairman, notes that AZL is in the midst of a transaction with an 
      affiliate of The Shidler Group whereby a newly created subsidiary of AZL 
      would acquire interests in certain office properties in Honolulu, 
      Phoenix and San Diego and AZL would change its name to “Pacific 
      Office Properties Trust, Inc.” all on the 
      terms and subject to the conditions in the Master Formation and 
      Contribution Agreement dated October 3, 2006, as amended, between the 
      parties. Mr. Hislop also noted that AZL recently declared a $1.00 per 
      share nonrecurring dividend in lieu of regular quarterly dividends for 
      the fourth quarter of 2006 and first quarter of 2007 and in anticipation 
      of a change in the dividend policy of AZL following the consummation of 
      the transaction contemplated with the affiliate of The Shidler Group. 
      AZL anticipates that the new dividend policy may result in a smaller 
      quarterly dividend in the near future. Material details of this 
      transaction are disclosed in the company’s 
      recent Current Reports on Form 8-k filed with the SEC.
    
    
      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 $6 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 $15 billion, AAA/Aaa rated provider of 
      credit default protection.
    
    
      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 expects to 
      file a proxy statement regarding the proposed transaction with the 
      Securities and Exchange Commission. Shareholders are urged to read the 
      proxy statement, because it will contain important information about AZL 
      and the proposed transaction. At the appropriate time, shareholders will 
      be 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 will 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 when they become available 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 for AZL’s 
      Annual Meeting of Shareholders, which was filed with the SEC on November 
      14, 2005. Additional information regarding the interests of those 
      persons may be obtained by reading the proxy statement when it becomes 
      available.