Heartland Partners Preliminary Results for 1st Quarter of 2005; Delay in Filing Form 10Q

Heartland Partners Preliminary Results for 1st Quarter of 2005;
Delay in Filing Form 10Q 


CHICAGO, May 16  /PRNewswire-FirstCall/ -- Heartland Partners, L.P. (AMEX:HTL)
(the "Company") today reported preliminary unaudited results for the fiscal
quarter ended March 31, 2005.  The Company also announced that it will file the
12b-25 with the Securities and Exchange Commission for an extension for filing
its quarterly report on Form 10-Q while it completes its financial statements.
Results are expected within the 10-day period.

The Company reported a net loss of ($1,087,000) and property sales of
$4,203,000 for the quarter ended March 31, 2005.  The net loss will be
allocated entirely to the Class B Unit in accordance with the terms of the
Company's partnership agreement.

In comparison, operations for the quarter ended March 31, 2004, resulted in
property sales of $3,115,000 and net income of $937,000.  After allocations to
the Class B Unit and General Partner pursuant to the terms of the Company's
partnership agreement, there was net income of $0.42 per Class A Unit for the
first quarter of 2004.

The primary difference in operating results for the first quarter of 2005
compared to the first quarter of 2004 was a lower gross profit on property
sales.  Gross profit on property sales decreased by $2,120,000 to $251,000 for
the first quarter of 2005 compared to $2,371,000 for the first quarter of 2004.
 Property sales in the first quarter of 2005 consisted primarily of the
$4,200,000 sale of Heartland's Kinzie Station Phase II property.

The Company is in the process of attempting to sell the remainder of its real
estate assets and resolve its environmental and other liabilities.  The Company
faces challenges and uncertainties as to the outcome of pending litigation, the
resolution of pending environmental claims and liabilities and continued
operating losses.  The Company's management has taken, and intends to take
additional steps, including reducing fixed overhead, to position the Company to
deal with its current and expected financial condition.  There is no guarantee,
however, that any action taken by the Company's management will be successful.

About Heartland

Heartland Partners, L.P. is a Chicago-based real estate limited partnership
with properties in 9 states, primarily in the upper Midwest and northern United
States. CMC Heartland is a subsidiary of Heartland Partners, L.P. and is the
successor to the Milwaukee Road Railroad, founded in 1847.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This release includes forward-looking statements intended to qualify for
the safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements generally can be
identified by phrases such as the company, the Company or its management
"believes," "expects," "intends," "anticipates," "foresees," "forecasts,"
"estimates" or other words or phrases of similar import. Similarly, statements
in this release that describe the Company's business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking statements. All
such forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those in
forward-looking statements. The forward-looking statements included in this
release are made only as of the date of publication, and the Company undertakes
no obligation to update the forward-looking statements to reflect subsequent
events or circumstances.

                         HEARTLAND PARTNERS, L.P.
                            FINANCIAL SUMMARY
               (amounts in thousands, except per unit data)
                       (preliminary and unaudited)

                Summary Condensed Consolidated Operations

                                    Quarter Ended
                                      March 31,

                                 2005          2004

  Operating (loss) income     $(1,095)         $630

  Total other income                8           307

    Net (loss) income         $(1,087)         $937


  Net (loss) income per
    Class A Unit (a)              $--         $0.42


              Summary Condensed Consolidated Balance Sheets

                             March 31,                 December 31,
                                2005                      2004

  Properties, net             $2,846                     $6,416


  Cash and other assets(b)     7,686                      5,257


  Total assets                10,532                     11,673


  Total liabilities (c)        6,483                      6,537


  Partners' capital           $4,049                     $5,136

  a) Net (loss) income per Class A Unit is computed by dividing net (loss)
     income, allocated to the Class A limited partners, by 2,092,438 Class A
     limited partner units outstanding. The loss for the quarter ended March
     31, 2005 was allocated entirely to the Class B limited partner per the
     terms of the partnership agreement.
  b) Cash and other assets reflect an allowance of $7.334 million and
     $7.224 million for amounts due from affiliate at March 31, 2005 and
     December 31, 2004, respectively.
  c) Total liabilities include an allowance for claims totaling
     $3.67 million and $4.228 million at March 31, 2005 and December 31,
     2004, respectively.


DATASOURCE: Heartland Partners, L.P.



CONTACT:  Lawrence Adelson, Chief Executive Officer of Heartland

Partners, L.P., [phone], or Brien Gately of The Investor Relations

Co., [phone]

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