Inland Retail Real Estate Trust, Inc Announces Completion of Merger with Developers Diversified.

OAK BROOK, Ill. -- Inland Retail Real Estate Trust, Inc. ("IRRETI") announced today it has completed the previously announced merger with Developers Diversified (NYSE:DDR) for approximately $6.2 billion, including approximately $2.3 billion of existing debt.

Under the terms of the merger agreement, each outstanding common share of IRRETI was exchanged for $12.50 in cash in addition to 0.021569 shares of DDR common stock for an aggregate consideration of $14.00 per share. IRRETI shareholders of record as of December 15, 2006 will also receive prorated dividends for the month of February in cash in accordance with the merger agreement.

"This merger transaction validates the Inland Real Estate Group model, which is exemplified by this successful liquidity event for our company," commented Barry Lazarus, CEO and president of Inland Retail Real Estate Trust, Inc. "Inland Retail was originally sponsored by The Inland Real Estate Group of Companies, Inc., which continues to demonstrate a solid track record of performance and results, leading many shareholders to reinvest in its investment programs."

Inland Retail Real Estate Trust, Inc. is a self-administered and self-managed real estate investment trust primarily focused on acquiring, developing and managing community and neighborhood shopping centers in the eastern United States.

The Inland Real Estate Group of Companies, Inc., founded in 1968 and headquartered in Oak Brook, Ill., ranks collectively as the single fastest growing acquirer of retail property in the United States (Chain Store Age, May 2006), and the fifth-largest shopping center owner in North America (Shopping Centers Today, December 2006). Inland-sponsored companies own and manage in total over 100 million square feet of commercial real estate located in 44 states in the U.S. and Canada. The Inland Real Estate Group of Companies, Inc. is comprised of a group of separate legal entities some of which may be affiliates, share some common ownership or have been sponsored and managed by subsidiaries of Inland Real Estate Investment Corporation. For additional information, please refer to the company website at www.inlandgroup.com.

Developers Diversified owns and manages 800 retail operating and development properties totaling 162 million square feet in 45 states, plus Puerto Rico and Brazil. Developers Diversified is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which develops, leases and manages shopping centers. More information about Developers Diversified is available on the Internet at www.ddr.com.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of Developers Diversified, IRRETI and their affiliates or industry results or the benefits of the merger to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others, the effects of general and local economic and real estate conditions. Additional information or factors which could impact the companies and the forward-looking statements contained herein are included in each company's filings with the Securities and Exchange Commission. The companies assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.