CRIIMI MAE REPORTS 1994 RESULTS.

ROCKVILLE, Md.--(BUSINESS WIRE)--February 21, 1995--(NYSE:CMM) CRIIMI MAE Inc., the largest multifamily mortgage REIT, reported tax basis income for the year ended Dec. 31, 1994 of approximately $29.6 million ($1.17 per share) compared with last year's total of approximately $23.0 million ($1.14 per share).

These per share figures reflect a 25 percent increase in the weighted average common shares outstanding resulting from the public offering of five million shares during Mar. 1994 and the sale of 500,000 shares during Nov. 1994 under CRIIMI MAE's shelf registration statement.

The increase in 12-month tax basis income from 1993 to 1994 was primarily due to higher net capital gains and mortgage investment income, partly offset by increased interest expense. The growth in mortgage investment income resulted from an increase in government insured multifamily mortgage investments and income from subordinated securities, in which CRIIMI MAE began investing during 1994.

For 1994's fourth quarter, tax basis income was approximately $5.5 million (21 cents per share) compared with approximately $5.1 million (25 cents per share) for the same period last year.

Chairman William B. Dockser said, "We continue to pursue three primary strategies for reducing the impact of higher short-term interest rates and enhancing the return to CRIIMI MAE's shareholders. First, interest rate caps are in place, which will help to limit the downside impact on earnings if short term interest rates continue to rise.

"In fact, during the fourth quarter, we acquired an additional interest rate cap in anticipation of the expiration of CRIIMI MAE's interest rate collars during 1995. Second, to enhance returns to shareholders, we invested approximately $38.9 million in subordinated securities. Our business plan calls for CRIIMI MAE to invest up to 10 percent of total consolidated assets in these high-yielding securities by the end of 1995. And finally, we took several steps towards our goal of transforming CRIIMI MAE into a full service mortgage company.

"The objective is for CRIIMI MAE to be less reliant on interest rate spread investing and to have diverse revenue streams from activities such as mortgage origination and mortgage servicing. To that end, we filed a preliminary proxy statement with the Securities and Exchange Commission on Feb 6, 1995. The statement details our plan for CRIIMI MAE to become a self-administered and self- managed company by acquiring the mortgage affiliates of CRI, Inc."

CRI is the private real estate investment firm that, through an affiliate, serves as CRIIMI MAE's adviser.

Financial Statement Net Income

CRIIMI MAE reports both tax basis income and net income for financial statement purposes, but CRIIMI MAE's dividends are primarily based on tax basis income.

Net income for financial statement purposes increased approximately 65 percent, from approximately $15.8 million (78 cents per share) for 1993 to approximately $26.0 million ($1.07 per share) for 1994. Net income per share is calculated on the basis of weighted average shares outstanding during each year.

The same factors which led to 1994's higher tax basis income over 1993 contributed to higher net income for financial statement purposes -- primarily higher net capital gains and mortgage investment income, partly offset by increased interest expense.

In addition, last year's net income included two non-recurring expenses and one non- recurring gain which had the net effect of reducing last year's net income by approximately $3.1 million. One expense totaled approximately $4.9 million and resulted from the termination of an interest rate swap. The second expense was a $1.5 million provision for the settlement of litigation. The net capital gain totaled $3.3 million and resulted from the sale of a portion of the shares held by CRIIMI MAE in its subsidiary, CRI Liquidating REIT, Inc.

For the fourth quarter of 1994, net income for financial statement purposes was approximately $4.5 million (18 cents per share), compared with approximately $4.0 million (20 cents per share) for 1993's fourth quarter.

Investment Activity

During 1994, CRIIMI MAE launched its program to purchase high-yielding securities backed by portfolios of uninsured mortgage loans. For a discounted purchase price of approximately $38.9 million, CRIIMI MAE purchased securities with a face value of approximately $54.1 million. In order to closely monitor these investments, an affiliate of CRIIMI MAE's adviser serves as the loan servicer for mortgages in the two underlying portfolios and is the special servicer engaged to handle portfolio problems if they occur.

CRIIMI MAE also acquired 51 government insured multifamily mortgages during the year with an aggregate purchase price of approximately $194 million and funded advances on construction loans during the year of approximately $41.8 million. At year-end, CRIIMI MAE had committed to make additional advances on government insured construction loans of approximately $9.0 million.

Portfolio

Assets totaled approximately $955 million at year end, up approximately 18 percent from approximately $809 million at the end of 1993.

As of Dec. 31, 1994, CRIIMI MAE owned 217 government insured mortgages -- 173 were directly owned by CRIIMI MAE and 44 were held by CRIIMI MAE's primary subsidiary, CRI Liquidating REIT, Inc. CRIIMI MAE owns approximately 57 percent of the outstanding shares of CRI Liquidating REIT. In addition, CRIIMI MAE owned the general partnership interests in four American Insured Mortgage Investors Funds, which own substantially the same type of mortgage investments as CRIIMI MAE and CRI Liquidating REIT, Inc. CRIIMI MAE also owned five tranches of subordinated securities backed by two portfolios of multifamily and commercial mortgages.

Government insured or guaranteed multifamily mortgage investments comprise approximately 90 percent of CRIIMI MAE's consolidated total assets. -0-

CRIIMI MAE INC.

For the three months ended For the years ended

December 31, December 31,

1994 1993 1994 1993

Tax basis income:

Ordinary income:

Interest and other

operating

revenues $ 17,705,732 $ 13,725,994 $ 64,945,473 $ 50,805,433 Interest expense (11,728,905) (8,094,490) (39,076,990) (27,598,372)

Other expenses (1,814,963) (1,508,299) (7,284,683) (6,520,199) Total ordinary income 4,161,864 4,123,205 18,583,800

16,686,862

Net capital gains 1,368,888 930,329 11,022,623 6,328,376

Total tax basis income $ 5,530,752 $ 5,053,534 $ 29,606,423 $ 23,015,238

Tax basis income per share:

Ordinary income $ 0.16 $ 0.20 $ 0.73 $ 0.83

Net capital

gains 0.05 0.05 0.44 0.31

Total tax basis income per share $ 0.21 $ 0.25 $ 1.17 $

1.14

Weighted Average Shares outstanding

as of December 31,

(for tax purposes) 25,683,533 20,183,533 25,309,560 20,183,533

Dividends paid per share: $ 0.29 $ 0.28 $ 1.16 $

1.12

Financial statement net income:

Gross income,

including net

gains on mortgage

dispositions $ 19,376,368 $ 20,507,402 $ 84,441,108 $ 63,808,000

Interest expense (11,390,850) (8,521,972) (39,244,621) (28,008,282)

Termination of

interest rate swap -- (4,890,234) -- (4,890,234)

Other expenses (1,909,767) (1,894,309) (8,040,607) (7,353,963)

Provision for

litigation -- (850,000) 557,340 (1,500,000)

Gain on sale of

shares of subsidiary -- 3,281,750 -- 3,281,750

Minority interests

in net income

of consolidated

subsidiary(a) (1,573,307) (3,597,375) (11,703,101) (9,579,766)

Net financial

statement income $ 4,502,444 $ 4,035,262 $ 26,010,119 $ 15,757,505

Weighted average

shares

outstanding: 25,499,212 20,183,533 24,249,403 20,183,533

Net financial

statement income

per weighted

average share

outstanding $ 0.18 $ 0.20 $ 1.07 $ 0.78

As of December 31,

1994 1993

Balance Sheet Data:

Investment in mortgages

$857,589,329(b) $741,591,085(b)

Investment in subordinated

securities $ 38,858,349 $ --

Total assets $955,050,011 $808,701,030

(a) Represents the ownership interests of the minority shareholders in the net income of a subsidiary -- CRI Liquidating REIT, Inc. -- which is approximately 57% owned by CRIIMI MAE Inc.

(b) Includes net unrealized gains on a consolidated basis of approximately $18.3 million and $51.3 million as of December 31, 1994 and 1993, respectively, on mortgage investments of CRI Liquidating REIT, Inc. due to the implementation of Statement of Financial Accounting Standards No. 115.

CONTACT: Criimi Mae, Rockville

James T. Pastore

[phone]

Susan B. Railey

[phone]