Carey Diversified LLC Declares Second Quarter 1999 Dividend Increase.

NEW YORK--(BUSINESS WIRE)--June 21, 1999--

Carey Diversified LLC (NYSE: CDC), announced its Board of Directors has declared a quarterly cash dividend of $0.4175 per common share (on an annualized basis, $1.67 per share), its second quarterly dividend at the same rate.

The dividend will be payable on July 15, 1999 to shareholders of record on June 29, 1999. Since the company became public in January 1998, over $52 million have been paid out in dividends to shareholders.

In announcing the dividend, Francis J. Carey, Chairman and Chief Executive officer of Carey Diversified, commented, "As part of our time proven philosophy, we are focused on delivering rising current income, consistent investment performance and prudent growth for Carey Diversified's shareholders. With this dividend declaration and with the increase in Funds From Operations (FFO) during the first quarter, I am pleased to say that we are on track with meeting our objectives."

Gordon F. DuGan, the company's President, noted, "Yielding in excess of nine percent, Carey Diversified provides investors with an attractive alternative to utilities and bonds. With over 200 properties across the nation and broadly diversified by property type and tenant industry, we also believe Carey Diversified offers a way for individuals to diversify their portfolios."

Carey Diversified LLC, a member of the $2.5 billion W.P. Carey Group, is the largest limited liability company traded on the New York Stock Exchange. The company's portfolio consists of 208 properties totaling more than 20 million square feet. Carey Diversified leases properties to manufacturing, technology, retailing and communications companies including Federal Express Corp., America West Airlines, Detroit Diesel, Gibson Greetings, Inc., Dr. Pepper Bottling Company of Texas, Wal-Mart, AT&T, The Gap and more than 70 others. Additional information about Carey Diversified LLC is available on the company's website: 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 properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including the risk that the 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.