Malan Realty Investors, Inc.,  is a self-administered and self- managed real estate trust (REIT), engaged in the ownership, management and leasing of commercial retail properties.  Prior to December 2001, the Company was also engaged  in acquisition, development and redevelopment of such properties.  The Company's operating units are comprised of approximately 31 community shopping centers and free-standing retail stores.  The Company also manages properties owned by unrelated third parties on a limited basis.

In March 2002, the Company's Board of Directors voted to recommend a plan of complete liquidation of the Company to shareholders at the 2002 annual meeting.  The Plan of Liquidation was approved in August 2002 and provides for the orderly sale of assets for cash or such other form of consideration as may be conveniently distributed to shareholders, payment of or establishing reserves for the payment of liabilities and expenses, distribution of net proceeds of the liquidation to common shareholders, and wind up of operations and dissolution of the company.  The liquidation process is expected to take up to 24 months to complete, although it could take longer.  To assist in disposing its assets under the Plan of Liquidation, the Company hired CB Richard Ellis, Inc., a leading national real estate brokerage firm, under an exclusive sales listing agreement in October 2002, for the sale of substantially all of its real estate assets.