Malan Realty Investors Announces Net Assets in Liquidation at End of the First Quarter

Malan Realty Investors Announces Net Assets in Liquidation at End
of the First Quarter 


BINGHAM FARMS, Mich., May 14  /PRNewswire-FirstCall/ -- Malan Realty Investors,
Inc. , a self-administered real estate investment trust (REIT), announced that
net assets in liquidation for the first quarter ended March 31, 2004, decreased
by $506,000 from the fourth quarter ended December 31, 2003, to $27.4 million.

The estimated fair value on the remaining properties held for sale decreased
approximately $224,000 based on updated analysis.  The reserve for estimated
liquidation costs increased approximated $337,000, primarily due to increases
in actual other professional fees over what was previously projected and an
increase in the estimated cost for insurance during the liquidation period. 
These decreases were offset by net operating income from the properties of
approximately $1.6 million during the period.  A distribution of $1.5 million
was made to shareholders on January 26, 2004.

As a result of the approval of a plan of complete liquidation by its
shareholders, the company adopted the liquidation basis of accounting for all
periods beginning after September 30, 2002.  On September 30, 2002, in
accordance with the liquidation basis of accounting, assets were adjusted to
estimated net realizable value and liabilities were adjusted to estimated
settlement amounts, including estimated costs associated with carrying out the
liquidation.  Accordingly, Malan no longer reports net income or funds from
operations.

Malan closed on the sales of three properties and a vacant land parcel during
the quarter and three additional properties subsequent to March 31, 2004, at
contract prices totaling $18.5 million.  The company currently has 14 operating
properties under contract.

"The year to date has been very successful, with proceeds from property sales
of approximately $18 million and the final redemption of the convertible
subordinated debentures scheduled for next month," said Jeffrey Lewis,
president and chief executive officer of Malan Realty Investors.  "A majority
of our properties are currently under contract for sale, which will allow us to
reduce debt further and meet our principal obligations."

The company also announced during the quarter that it would complete the
redemption of its convertible subordinated debentures on June 1, 2004.  The
aggregate principal balance of its 9.5 percent Convertible Subordinated
Debentures due July 15, 2004, is currently $7.1 million.

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, Inc. 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, intestate 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 21 properties located in seven states that contains an
aggregate of approximately 1.5 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 of Malan Realty Investors, Inc.,

[phone], or Fred Nachman of Marjan Communications Inc.,

[phone]



Web site:  http://www.malanreit.com/ 

Copyright