Arizona Land Income Corp. Reports Third Quarter Results.

PHOENIX -- Arizona Land Income Corp. (AMEX: AZL), an independent real estate investment trust (REIT), today announced earnings for the three and nine month periods ending Sept. 30, 2004.

For the quarter ended Sept. 30, 2004, the company had total income before gain on sale of properties of approximately $83,000 compared to $15,000 for the quarter ended Sept. 30, 2003.

The company reported net income of approximately $55,747 for the quarter ended Sept. 30, 2004 compared to a net loss of approximately $3,243 for the quarter ended Sept. 30, 2003. The increase in total income and net income is primarily attributable to an increase in interest on mortgages from $10,000 to $57,000.

The company reported total income before gain on sale of properties of approximately $132,000 for the nine months ended Sept. 30, 2004 compared to $56,000 for the same period in the prior fiscal year.

For the first nine months of fiscal 2004, the company reported net income of approximately $4,642,000 or $2.51 per common share compared to a net loss of approximately $55,000 or ($0.03) per common share for the comparable period in the prior fiscal year. The increase in total income and net income is primarily attributable to an increase in the mortgage portfolio in 2004 compared to 2003, and the resulting increase in mortgage interest of approximately $48,000 and a gain on the sale of properties of $4,649,000.