Developers Diversified Realty Corporation is Dismissed from First Union Litigation.

MORELAND HILLS, Ohio--(BUSINESS WIRE)--Aug. 11, 1995--Developers Diversified Realty Corporation (``DDRC'') is pleased to announce that United States District Judge Lesley Brooks Wells yesterday granted the Motion for Summary Judgment filed by DDRC, The Wolstein Group, Inc., Heritage Capital Corporation, Bert L. Wolstein and Scott A. Wolstein (collectively the ``Wolstein Defendants'') as to each claim asserted by First Union Real Estate Equity and Mortgage Investments (``First Union'') directly against the Wolstein Defendants. Among the findings the Court made in its Memorandum of Opinion granting the Motion for Summary Judgment were: ``There is no evidence that any of the Wolstein Defendants ever owned any First Union shares, either directly or beneficially. . . There is no evidence the Wolstein Defendants intended to purchase First Union shares in the future, either directly or through others. . . Specifically, there is no evidence (that the Wolstein Defendants) intended to purchase First Union shares or fund the purchase of shares by (Mr. Richard Osborne, the Turkey Vulture Fund VII Ltd.) or others. . . Moreover, there is no evidence of any agreement among the Wolstein Defendants and anyone else for the Wolstein Defendants to acquire First Union properties following a takeover. . . The evidence presented does not support an inference that the Wolstein Defendants agreed to purchase First Union's assets following a takeover. . . There is no evidence the Wolstein Defendants themselves made any false statements or engaged in any fraudulent, deceptive or manipulative practices in connection with the tender offer. . . There is no evidence the Wolstein Defendants themselves either traded in First Union securities or communicated information about a tender offer to others.'' Mr. Scott A. Wolstein, Chief Executive Officer and President of DDRC, said of the Court's opinion: ``As we have said repeatedly, we have never owned or had an interest in owning any stock in First Union. We said from the commencement of this litigation that we would make ourselves as open and as accessible as possible in order that our names and reputations could be cleared. We are gratified that the Court has confirmed the spurious nature of the allegations of First Union against us.''

Because the claims which First Union alleges it has against Mr. Mark Escaja were not addressed by the Wolstein Defendants, the Court was unable to determine whether, as a matter of law, the claims against Mr. Escaja should be dismissed. Since Mr. Escaja has never been employed by DDRC, DDRC was completely dismissed from the litigation. However, the Court has not addressed the potential secondary liability, if any, of the other Wolstein Defendants relating to the actions of Mr. Escaja.

Developers Diversified Realty Corporation is a self administered and self managed Real Estate Investment Trust (``REIT'') operating as a fully-integrated real estate company which acquires, develops, owns, leases, and manages shopping center and business centers. Aggregate Company owned gross leasable area approximates 14.6 million square feet and the overall occupancy rate was approximately 96.7% at June 30, 1995.

CONTACT: Developers Diversified Realty Corporation

Scott A. Wolstein, 216/247-4700