Carey Diversified LLC Declares Third Quarter 1999 Dividend.

NEW YORK--(BUSINESS WIRE)--Sept. 16, 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 third quarterly dividend this year at the same rate and an increase over last year's rate of $0.4125. The dividend will be payable on October 15, 1999 to shareholders of record on September 30, 1999.

Since the Company became public in January 1998, over $73.2 million has been paid out in dividends to shareholders. Dividend payout from Funds From Operations (FFO) continued to strengthen, decreasing from 84% to 80% during the quarter.

In announcing the dividend, Francis J. Carey, Chairman and Chief Executive Officer of Carey Diversified, commented, "We are on track to meet our objectives. Both FFO and revenues increased by over 6% last quarter and we are making good on our commitment to deliver rising current income, consistent investment performance and prudent growth for Carey Diversified's shareholders."

Gordon F. DuGan, the Company's President, noted, "Central to our investment philosophy is providing steadily increasing dividends to our investors. We continue to seek sound and prudent investment opportunities with stable cash flow that satisfy our investment parameters and add value for our shareholders."

Carey Diversified LLC, a member of the $3.0 billion W. P. Carey Group, is the largest limited liability company traded on the New York Stock Exchange. The company's portfolio consists of 210 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, 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.