First Union Announces Radiant Deposit of $6 Million Under Sale Contract; Westgate Mall Refinancing.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 2, 2000

First Union Real Estate Equity and Mortgage Investments (NYSE: FUR) today announced that, in connection with the sale of Company properties for approximately $205 million to Radiant Investors LLC (Radiant), that Radiant has deposited an additional $6 million as required under the terms of the definitive agreements of sale between the Company and Radiant (collectively, the Sale Contract).

The new deposit brings the total of the Radiant deposits under the Sale Contract to $7 million. The deposits are non-refundable except if consents to the assumption of mortgages, third party financing commitments or estoppels are not obtained with respect to certain of the properties to be acquired under the Sale Contract or if certain other contingencies occur.

In addition, the Company announced the closing of the refinancing of the Westgate Town Center mall in Abilene, Texas. The amount of the mortgage loan is $8.5 million of which $7.5 million of the proceeds were advanced to the Company at closing and an additional $1.0 million will be advanced to the Company upon the satisfaction of certain contingencies. This property is among those that will be acquired by Radiant under the Sale Contract.

Under the transactions contemplated by the Sale Contract, the Company and its subsidiaries will receive aggregate consideration of approximately $205 million. The deposits made by Radiant shall be credited toward the $205 million consideration at the closing. As part of the consideration, it is intended that Radiant will assume the mortgages or obtain third party financing to replace the mortgage debt on certain of the properties to be sold. Under certain circumstances, the Company may elect to provide Radiant with financing with respect to certain of the properties to be sold.

Certain statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, changes in local real estate conditions and markets, actions by competitors, interest rate movements and general economic conditions. Further information about these matters can be found in the information included in the Annual Report filed by the Company with the SEC on Form 10-K.

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