AMREP Reports Sharply Increased First Quarter Results With Net Income Up 471 Percent From First Quarter 1998.

NEW YORK--(BUSINESS WIRE)--August 26, 1998--AMREP Corporation (NYSE:AXR) today reported a 471 percent increase in net income for its fiscal 1999 first quarter ending July 31, 1998 from $505,000 in the same period in fiscal 1998 to $2,882,000 this year. First quarter revenues increased 22 percent from $37,795,000 last year to $46,223,000 this year. Basic and diluted earnings per share were $0.39 in this year's first quarter compared to $0.07 per share in the same period in fiscal 1998.

Commenting on these results, Board Chairman Edward B. Cloues, II said, "AMREP had a very good first quarter, reflecting improved performance in all major areas of the Company's business. Results were particularly strong in our land sales and magazine distribution businesses. Our home building business showed significant year to year improvement over the first quarter of fiscal 1998 and our subscription fulfillment and related services business generated a slight profit in what is normally its weakest quarter."

AMREP Corporation is a leading builder of affordable housing and developer of real estate, primarily in New Mexico, Colorado, northern California, Nevada and Oregon. Through its Kable News Company subsidiary, it also distributes magazines to wholesalers and provides subscription fulfillment and related services to publishers and others. As previously announced, AMREP has filed a request for a ruling from the Internal Revenue Service (IRS) to spin-off its real estate operations to its shareholders on a tax-free basis. A favorable response from the IRS is by no means certain, and there are a number of other conditions to the implementation of the spin-off.

This release is available on the KCSA Worldwide website at www.kcsa.com. -0-

                       AMREP Corporation
                        and Subsidiaries
                       Financial Highlights
                           (Unaudited)

                         Three Months Ended July 31,
                           1998            1997

Revenues                $ 46,223,000    $ 37,795,000

Net Income              $  2,882,000    $    505,000

Earnings Per Share
 - Basic and Diluted    $       0.39    $       0.07

Weighted Average Number
 of Common Shares
  Outstanding              7,369,000       7,369,000



   CONTACT:  AMREP Corporation
              Mohan Vachani
              212/705-4700
                 or
              KCSA
              Joseph A. Mansi
              212/896-1205 (phone)
              212/697-0910 (fax)
              [e-mail]