First Union Real Estate Investments Announces Delay in Mailing of Annual Report to Shareholders.

CLEVELAND--(BUSINESS WIRE)--April 19, 1999--

First Union Real Estate Investments (NYSE:FUR) today announced a delay in the mailing of its Annual Report to Shareholders. As previously disclosed, after discussion with the SEC in connection with the filing of a registration statement for a rights offering to be conducted by the Trust, First Union determined that it was necessary to restate earnings for prior periods on account of a change in the depreciable life of certain assets. These required changes had a direct impact on the Trust's ability to complete the financial statements contained in First Union's 1998 Report on Form 10-K and in its Annual Report to Shareholders within the time frame required by the New York Stock Exchange.

The registration statement for the rights offering was declared effective on April 13, 1999 and on that same date the Trust filed its Form 10-K/A with the SEC. The Annual Report containing the required financial information is now in final production and the Trust anticipates mailing it to shareholders on or about April 19, 1999. The Trust stated that the Form 10-K/A, which contains its financial statements and other required information, is available to members of the financial community and to shareholders on request by contacting the Trust at 55 Public Square, Suite 1900, Cleveland, Ohio 44113-1937, Attention: Jeanne Gibson (telephone number: [phone] ext. 1039) or may be obtained through the World Wide Web at http://www.sec.gov.

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