CRI LIQUIDATING REIT SELLS MORTGAGES.

ROCKVILLE, MD, Jan. 25, 1995--(NYSE:CFR)--(BUSINESS WIRE)--CRI Liquidating REIT, Inc. recently sold 21 federally insured multifamily mortgage investments, generating net proceeds of approximately $49.7 million ($1.63 per share), including long-term capital gains on a tax basis of approximately $9.5 million (31 cents per share).

The sale of these 21 mortgages represents all of the voluntary mortgage dispositions the company plans to undertake during 1995. CRI Liquidating REIT's business plan calls for disposing of approximately one-third of its mortgages each year until the portfolio is liquidated by the end of 1997. The recent 21-mortgage sale represents approximately 33 percent of the portfolio at December 1994.

The company will distribute the disposition proceeds to shareholders as part of the first quarter dividend. As a REIT, the company distributes virtually all of its taxable income to shareholders each year. As a liquidating company, the REIT returns capital to shareholders upon disposal of mortgages.

For tax purposes, the $1.63 per share of net proceeds breaks down as approximately $1.32 per share as return of capital and approximately 31 cents per share as long-term capital gains.

CRI Liquidating REIT, Inc. is a real estate investment trust specializing in federally insured multifamily mortgages. Total assets at December 31, 1994 were approximately $159 million. Its adviser is an affiliate of CRI, Inc., a national real estate investment firm, which through affiliates, is the adviser for or general partner of two REITs and seven partnerships which trade on the New York or American Stock Exchanges.

CONTACT: James T. Pastore

301-231-0323

Susan B. Railey

301-468-3120

Suzie C.Kostelnik

301-468-3130