Heartland Partners Reports Results for 4th Quarter and FY04

Heartland Partners Reports Results for 4th Quarter and FY04 


CHICAGO, April 28  /PRNewswire-FirstCall/ -- Heartland Partners, L.P.
(AMEX:HTL) ("Company") today reported results for the fiscal quarter and year
ended December 31, 2004.

The Company reported a net loss for the quarter ended December 31, 2004 of
($4,906,000) and a net loss of ($4,355,000) for the year. The net losses 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 December 31, 2003, resulted in
net loss of ($1,820,000) and there was a net loss of ($2,355,000) for the year.
 After allocations to the Class B Unit pursuant to the terms of the Company's
partnership agreement, there was a net loss of ($0.85) per Class A Unit for the
fourth quarter of 2003 and net loss of ($1.10) per Class A Unit for the full
year.

The company noted that the primary difference in operating results for 2004
compared with 2003 was a significant decrease in property sales revenue that
was only partially offset by lower operating expenses.  Sales revenue in 2004
decreased by $28,645,000 to $4,035,000 in 2004 compared to $32,680,000 in 2003.

While Heartland had three parcels of land in Chicago under contract for sale in
2004 for an aggregate sales price of approximately $10,000,000, none of them
closed in 2004.  One of these properties, with a sales price of $4,200,000,
closed during the first quarter of 2005 the company said.  The buyers for the
other two properties appear to be making progress towards obtaining the
governmental approvals required to close those transactions. However, the
Company cannot be certain that these sales will close in 2005.

Management said that operating results for 2004 also reflect a bad debt expense
of $2,139,000.  This primarily is an additional write down of notes and other
amounts due from Heartland Technology Inc., an affiliate of the general partner
of the Company.

Heartland's other potentially significant asset is a claim against the
Redevelopment Authority of the City of Milwaukee ("RACM"), said the company. In
2003, RACM acquired the Company's Menomonee Valley property in Milwaukee,
Wisconsin.  Under the terms of the conveyance to RACM, Heartland received
$3,550,000 in cash and retained the right to seek additional compensation
through an appeal.  The appeal was filed in 2004.  The Company's appraiser has
valued the property at $15,000,000.  This matter is unlikely to go to trial
until 2006.

Larry Adelson, Heartland's chief executive officer, said, "Heartland's reserves
for claims and liabilities increased from $3,970,000 to $4,228,000. These
amounts relate to environmental claims.  Heartland made progress in 2004 on
resolving some of its environmental liabilities.  In particular, it reached a
settlement with US Borax for the sharing of costs to remediate arsenic at the
Lite Yard site in Minneapolis, Minnesota and the project is well on its way to
completion.  However, there were some negative developments on the
environmental front as well.  The USEPA found arsenic in yards in a residential
neighborhood near the Lite Yard.  USEPA has removed the contaminated soil from
some yards, and is testing others.  Heartland and US Borax have been named as
"potentially responsible parties" for the costs of this project, which is
ongoing.

"In Miles City, Montana, the Company has a dispute with Trinity Industries over
responsibility for possible environmental problems at a former Milwaukee Road
rail yard now owned by Trinity.  Heartland is, and has been for many years,
operating a recovery system for diesel fuel that leaked into the groundwater
there.  Montana's Department of Environmental Quality has asked for Heartland
and Trinity for additional testing of the property.  Until the additional
investigation is done it is unknown if there is additional liability or whether
any liability would be Trinity's or Heartland's. The local court in Montana has
required the Company to provide guarantee through bond, escrow or other
arrangement $2,500,000 against possible costs at the site.  The Company intends
to comply with this order through a letter of credit," Adelson said.

"Heartland is being sued by Edwin Jacobson, its former President and Chief
Executive Officer.  He claims to be due as much as $12 million under an
employment contract.  Heartland has asserted a counterclaim against him.  This
case is not likely to go to trial until 2006," Adelson continued.

"Given the uncertainties as to the timing of sales, the outcome of pending
litigation, the resolution of pending environmental claims and liabilities and
continued operating losses, the Company's independent accountant has issued a
modified unqualified opinion in connection with the Company's audit for the
year ended December 31, 2004.  The opinion states that the uncertainties
described above raise a substantial doubt about the Company's ability to
continue as a going concern.  The Company's cash position is good, and
management is taking the 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," Adelson concluded.

About Heartland

Heartland Partners, L.P. is a Chicago-based real estate limited partnership
with properties 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.

                             -Tables Follow-


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

                Summary Condensed Consolidated Operations


                            Quarter Ended           Twelve Months Ended
                             December 31,               December 31,

                           2004         2003         2004         2003

  Operating loss        $(4,954)     $(3,276)     $(4,524)     $(3,763)
  Total other income         48        1,456          169        1,408
    Net loss            $(4,906)     $(1,820)     $(4,355)     $(2,355)

  Net loss per
   Class A Unit (a)      $(0.25)      $(0.85)     $   -         $(1.10)

              Summary Condensed Consolidated Balance Sheets

                       December 31,               December 31,
                           2004                      2003

  Properties, net         $6,416                    $7,730

  Cash and other assets(b) 5,257                     9,261

  Total assets            11,673                    16,991

  Total liabilities (c)    6,537                     7,500

  Partners' capital       $5,136                    $9,491

  a)Net income (loss) per Class A Unit is computed by dividing net income
    (loss), allocated to the Class A limited partners, by 2,092,438 Class A
    limited partner units outstanding for the years ended December 31, 2004
    and 2003. The losses for the fourth quarter and year ended December 31,
    2004 were allocated entirely to the Class B limited partner per the
    terms of the partnership agreement.
  b)Cash and other assets reflect an allowance of $7.234 million and $5.133
    million for amounts due from affiliate at December 31, 2004 and December
    31, 2003, respectively,
  c)Total liabilities include an allowance for claims totaling $4.23 million
    and $3.97 million at December 31, 2004 and 2003, 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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