First Union Real Estate Equity and Mortgage Investments Holds Shareholder Meeting.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 18, 2003

First Union Real Estate Equity and Mortgage Investments (NYSE: FUR) announced today that shareholders have re-elected the four members of the Board of Trustees at a special meeting in lieu of the 2003 annual meeting held June 17, 2003. Talton R. Embry was elected for a term of office expiring at the 2006 annual meeting, Bruce R. Berkowitz and Jeffrey B.Citrin were elected for a term of office expiring at the 2004 annual meeting, and Daniel J. Altobello was elected for a term of office expiring at the 2005 annual meeting. Over 76% of the common shares were represented at the meeting. All nominees were re-elected by in excess of 84% of the common shares voting.

Following the shareholders meeting, the Board of Trustees met and unanimously appointed Neil H. Koenig, current Interim Chief Financial Officer and Secretary, to serve as a Trustee for a term expiring at the 2005 annual meeting.

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.