First Union Announces Addition to Board of Trustees.

CLEVELAND--(BUSINESS WIRE)--Oct. 13, 1998--First Union Real Estate Investments (NYSE:FUR) announced today that William Scully has been elected to fill one of three vacant seats on its Board of Trustees. The Trust further announced that there are no immediate plans to fill the two remaining vacancies.

Mr. Scully has been with Apollo Real Estate Advisors, L.P. since 1996 and is responsible for new investments and investment management. He was previously a senior vice president of O'Connor Capital, Inc., the general partner of The Argo Funds, and the director of acquisitions for The Argo Funds. Mr. Scully is a cum laude graduate of Dartmouth College with a BA in economics and history and received an MBA from the University of Pennsylvania's Wharton School for Business.

Bill Ackman, chairman of First Union, commented, "We are delighted to have Bill join the First Union Board. His extensive real estate investment experience, combined with the resources of Apollo Real Estate Advisors, will be of great value to the Board as it evaluates the disposition of various assets and the investment strategy for the Trust going forward."

First Union Real Estate Equity and Mortgage Investments is a NYSE listed stapled-stock real estate investment trust (REIT) headquartered in Cleveland, Ohio.