EQK Files Modified Amended Plan of Reorganization.

Business Editors

ATLANTA--(BUSINESS WIRE)--Aug. 22, 2000

EQK Realty Investors I ("EQK") announced that it has filed a Modified Amended Plan of Reorganization (the "Modified Plan") with the U.S. Bankruptcy Court for the Middle District of Pennsylvania (the "Bankruptcy Court"), where EQK's bankruptcy case is pending. The Modified Plan is to be submitted to a vote of shareholders and will be subject to confirmation by the Bankruptcy Court. A disclosure statement describing the Modified Plan will be mailed to shareholders shortly.

The Modified Plan contemplates that the Harrisburg East Mall, the sole remaining real estate asset of EQK, will be sold at an outcry auction to be held in the courtroom of the Bankruptcy Court, currently scheduled for 2:00 p.m. on September 21, 2000.

The Modified Plan also reflects terms of an agreement dated as of August 18, 2000, among EQK, American Realty Trust ("ART") and American Realty Investors, Inc. ("ARI"), the new parent company of ART (the "Agreement"). Pursuant to the Agreement and the Modified Plan, claims asserted by ART against EQK arising out of the previous, now terminated merger agreement between EQK and ART would be settled in exchange for the issuance to ART of six million shares of beneficial interest in EQK (the "EQK Shares"). An additional 1.5 million EQK Shares would be issued to ART in exchange for $1,125,000 in cash and 125,000 shares of ARI Series A Preferred Stock with a liquidation value of $10 per share. The Series A Preferred Stock has substantially similar terms to the former Series F Preferred Stock of ART that was to be issued pursuant to the prior merger agreement. All existing EQK shares are to be cancelled pursuant to the Modified Plan resulting in EQK being wholly owned by ARI and ART upon closing under the Agreement, which is scheduled to take place eleven days after confirmation of the Modified Plan by the Bankruptcy Court, provided that no stay is then in effect.

Under the Modified Plan, if confirmed by the Bankruptcy Court, the net assets of EQK (including proceeds from the anticipated auction sale of the Mall and the consideration to be paid pursuant to the Agreement) remaining after payments of secured creditors' claims will be paid first to EQK's unsecured creditors until they are paid in full, and then any remaining assets would be distributed to EQK's shareholders.

Lloyd T. Whitaker, president of EQK, emphasized that there can be no assurance that the Modified Plan will be confirmed or that any assets ultimately will be available for distribution to EQK's shareholders.

The name EQK Realty Investors I is the designation of the Trustees under a Declaration of Trust dated October 8, 1984, as amended. Neither the Trustees, Shareholders, Officers or Agents of the Trust shall be liable for the obligations of the Trust, and all persons shall look solely to the trust estate of EQK Realty Investors I for the payment, performance and obligations of the Trust.