DDR Senior Managers Raise Combined Equity Stake by $15 Million; 100% Participation Further Aligns Shareholder and Management Interests.

CLEVELAND--(BUSINESS WIRE)--Nov. 19, 1998--Developers Diversified Realty Corporation (NYSE:DDR) ("DDR") today announced that all eleven members of its Executive Committee, in combined action, either through the exercise of previously granted stock options or direct purchase of treasury shares have acquired 974,645 shares of DDR common stock raising senior management's ownership to 3.8% of common shares outstanding in the Company. The exercise of options and the purchase of treasury shares were financed by a five-year personal loan program at market interest rates from First Chicago/Bank One. Participants in the program are responsible for repayment of these personal loans and have fully indemnified DDR which guaranteed repayment of the loans to facilitate the transaction. Treasury shares were purchased by the three most recent appointees to DDR's executive committee at the New York Stock Exchange closing price Tuesday November 10, 1998 of $18.375.

Scott A. Wolstein, DDR chairman and chief executive officer, commented, "I feel the unanimous participation in this program is further evidence and underscores the commitment DDR senior management continually demonstrates to our fellow shareholders. This program clarifies the financial alignment of interests between DDR's senior management team and DDR shareholders. The significant percentage of each executive committee member's net worth committed to DDR is now even greater. As demonstrated by the unanimous participation, I can confidently report to current and future shareholders that DDR's management team believes in the earnings growth and share price appreciation potential of DDR stock and is working to ensure that outcome."

Developers Diversified Realty Corporation is a fully-integrated real estate company that acquires, develops, owns, leases and manages shopping centers operating as a self-administered and self-managed Real Estate Investment Trust ("REIT"). Additional information on DDR is available on our Internet web site: www.ddrc.com.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property or the loss of a major tenant.