Carey Diversified Announces 1997 Year End Results; $1.90 FFO Per Share.

NEW YORK--(BUSINESSS WIRE)--March 31, 1998--Carey Diversified LLC (NYSE:CDC), a market leader in real-estate net lease investing -- managed by W.P. Carey & Co., Inc. -- today reported pro forma funds from operations (FFO) of $1.90 per share for the year ended December 31, 1997, as compared with previously published company estimates of $1.88.

The consolidation of the static and self-liquidating CPA 1-9 partnership portfolios into Carey Diversified took place on January 1, 1998. Accordingly, 1997 data is reported on a pro forma basis and results from previous years are not comparable.

Commenting on 1997 year-end results, Gordon F. DuGan, president of Carey Diversified stated: "The consolidation of nine of the real estate portfolios into Carey Diversified provides a solid foundation for an aggressive growth program. The financial strength and ability to generate new capital created by this consolidation, coupled with operational flexibility in determining where to invest to achieve higher returns, will result in major benefits to both current and new stockholders. We have already taken several important steps in 1998, including negotiating a $150 million unsecured revolving credit facility to be used to retire existing high-interest debt and fund Carey's ongoing acquisition program."

Mr. DuGan added: "The flexibility and liquidity provided by the new corporate structure has allowed us to complete successfully two new property acquisitions -- two `built-to-suit' headquarter office facilities for American West and Federal Express in Arizona and Tennessee, respectively. These acquisitions are examples of the types of opportunities available to Carey Diversified to fuel growth through our structuring and management expertise."

Carey Diversified LLC is a market leader in the ownership and net-leasing of corporate properties. Carey Diversified's portfolio consists of 198 properties in 37 states, totaling more than 20 million square feet. Carey Diversified leases properties to manufacturing, technology, retailing and communications companies including Detroit Diesel, Gibson Greetings, Inc., Dr. Pepper Bottling Company of Texas, Wal-Mart, AT&T, The Gap and more than 70 others nationwide. Additional information about Carey Diversified LLC is available on the company's website at http://www.careydiv.com.

This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission. -0-

CAREY DIVERSIFIED LLC
Reconciliation of Pro Forma Net Income to Pro Forma Funds From
Operations

                                             Dec. 31, 1997

Pro forma Net Income                           37,946,000
Gain on sale of real estate                    (1,565,000)
FFO of equity investees in excess
 of equity income                               1,097,000
Non-cash charges (1)                           14,000,000
Minority interest in income in
 excess of distributions                          252,000
Adjustment for non-recurring
 lease revenues (2)                            (5,945,000)
Other                                            (150,000)
Pro Forma FFO                                  45,635,000

Pro Forma Weighted Average Listed
 Shares Outstanding (3)                        24,055,145

Pro Forma FFO Per Share                              1.90

(1) Reflects the sum of real estate depreciation expense of
    $9,389,000 expenses paid in the form of Listed Shares of
    $805,000 and writedowns of properties to their net realizable
    value of $3,806,000.
(2) Reflects adjustment for non-recurring rents recognized in 1997
    on certain leases.  Certain lease modifications effective prior
    to 1997 resulted in temporary increases in lease revenues in the
    three year period ended Dec. 31, 1997.  Adjustment reduces lease
    revenues to an annualized amount consistent with new leases
    entered into during 1997.
(3) Reflects initial issuance of Listed Shares plus Shares issued
    for payment of pro forma performance fees and compensation to
    officers and directors.

CONTACT: Matthew B. Walley

Carey Diversified LLC

212-492-8992

or

Patricia Westring

The Torrenzano Group Ltd.

212-681-1700 ext. 112