Milberg Weiss Announces Class Action Against Prudential Securities Inc. and Arthur Andersen LLP.

NEW YORK--(BUSINESS WIRE)--Oct. 15, 1999--

The Following is an Announcement by the Law Firm of Milberg Weiss Bershad Hynes & Lerach LLP:

Notice is hereby given that Plaintiff Ken Recupito filed a class action lawsuit against Prudential Securities Inc. ("Prudential") and Arthur Andersen LLP ("AA") on September 30, 1999, in the United States District Court for the District of Maryland, on behalf of all persons (the "Class") who purchased or otherwise acquired the common stock of Criimi Mae Inc. (NYSE: CMM) ("CMI" or the "Company"), in an offering ("Offering") pursuant to a registration statement dated October 21, 1997 (the "Registration Statement"), including a prospectus dated January 20, 1998 and supplemented on January 23, 1998 (the "Prospectus").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, or if you wish to obtain a copy of the complaint, please contact, at Milberg Weiss Bershad Hynes & Lerach ("Milberg Weiss"), Paul Young or Bruce Bernstein at One Pennsylvania Plaza, 49th Floor, New York, New York 10119-0165, by telephone [phone] or via e-mail: [e-mail] or visit our website at www.milberg.com.

The Complaint charges Prudential with violations of Sections 11 and 12(a)(2) of the Securities Act of 1933 (the "Securities Act"). The Complaint alleges that Prudential made a series of materially false and misleading statements in CMI's Registration Statement and Prospectus regarding trends in the Company's business, including CMI's substantial investments in commercial mortgage backed securities and the risks associated with using such Securities as collateral for its investments. The Complaint further alleges that Prudential, as a seller, offeror, and/or solicitor of sales of the shares offered pursuant to the Registration Statement and Prospectus, participated in the preparation of the materially false and misleading statements contained therein. As a result of these materially false and misleading statements, plaintiff alleges that the price of CMI's common stock sold in the offering was artificially inflated.

The Complaint also charges AA with violating Section 11 of the Securities Act. The Complaint alleges that AA, CMI's independent auditor at all relevant times to this litigation, is liable to plaintiff and the Class because of its certification and consent of the materially false and misleading financial statements contained in the Company's Registration Statement and Prospectus. As a result of AA's certification and consent of the materially false and misleading financial statements, plaintiff alleges that the price of CMI's common stock was artificially inflated.

The lawsuit filed is related to a class action captioned In re Criimi Mae Inc. Securities Litigation, Master File No. DKC 98-3373, in which an Amended and Consolidated Class Action Complaint was filed in the United States District Court for the District of Maryland on April 23, 1999. In that action, the complaint charged individuals who had been officers of CMI for violations of Sections 10(B), 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. Proposed co-lead counsel in that action are Abbey, Gardy & Squitieri, LLP, Cohen, Milstein, Hausfeld & Toll, P.L.L.C., Milberg Weiss Bershad Hynes & Lerach LLP, and Weiss & Yourman.

Plaintiff seeks to recover damages on behalf of class members and is represented by Milberg Weiss, among others. Milberg Weiss maintains offices in New York City, San Diego, Los Angeles, San Francisco and Boca Raton and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in numerous important actions on behalf of defrauded investors, and is responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. For more information about Milberg Weiss, please visit our website at www.milberg.com.

You may conduct an independent inquiry into the matter by, among other things, reviewing the files maintained by the Clerk of the United States District Court for the District of Maryland for Master File No. DKC 99-2992.

If you are a member of the class described above you may, not later than sixty days from September 30, 1999, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.