Malan Realty Investors Announces Sale of Valparaiso Property

Malan Realty Investors Announces Sale of Valparaiso Property



BINGHAM FARMS, Mich., July 22  /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE:MAL), a self-administered real estate investment trust
(REIT), announced it has completed the sale of a property leased to Kmart in
Valparaiso, Indiana.

The 93,592 square-foot property is located at 2801 Calumet Avenue.  The
purchaser is an affiliate of Kmart Corporation.  Net proceeds to Malan from the
transaction were approximately $1.8 million.

"The sale of this Big Kmart store moves us closer to completing the orderly
liquidation of the company," said Jeffrey Lewis, president and chief executive
officer of Malan Realty Investors.

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 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, interstate
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 19 properties located in seven states that contains an
aggregate of approximately 1.2 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:  Media Relations, John Roberson of Malan Realty Investors, Inc.,

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

[phone]



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

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