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CARDINAL RETAINS OWNERSHIP INTERESTSIN MAJORITY OF ITS DEFERRED PROPERTIES

 REYNOLDSBURG, Ohio, March 31 /PRNewswire/ -- Cardinal Realty Services, Inc. (OTC Bulletin Board: CNRV) today announced it will retain its general partner equity interests in an additional 235 apartment and motel properties beyond those included in its core group of 325 properties when it emerged from bankruptcy protection last September.
 Cardinal President and Chief Executive Officer Frank McDowell said the company has assumed executory contracts for 235 of the 313 deferred properties in its portfolio, significantly enhancing the prospects for Cardinal's core businesses. The deferred contracts consisted primarily of partnership agreements with limited partners entered into by the former Cardinal Industries, Inc.
 Of the newly retained properties, 195 are owned by syndicated limited partnerships involving investors at the limited partner level; the rest are company-owned. Of the partnerships that were not assumed, it had previously been determined that 39 were not reorganizable and agreements relinquishing the properties to lenders were executed.
 Bankruptcy law allows a company emerging from court-supervised reorganization to accept or reject executory contracts to which it was a party prior to filing for bankruptcy protection. U.S. Bankruptcy Judge Barbara Sellers granted Cardinal an additional six months after its emergence to study alternatives for the deferred properties more closely. During that period, Cardinal conducted an analysis of each partnership in an effort to retain as many properties as possible.
 "Cardinal had to balance its responsibility to the limited partners with the necessity to remain a stable company," McDowell said. "While we're pleased to have assumed three out of four of the deferred partnerships, we also regret not being able to assume all of the contracts. We are currently looking at strategies that may offer a window of opportunity to the limited partners involving the reformation of the rejected partnerships.
 "The number of partnership agreements we assumed exceeds the most optimistic projections of the plan of reorganization, and positions Cardinal well for the future."
 The newly accepted agreements now are added to agreements for the core group of 325 partnerships that Cardinal immediately had accepted upon emergence from bankruptcy. The properties for which contracts were accepted -- both upon emergence and now -- form the nucleus of Cardinal's post-reorganization operation, which is focused on providing property management and general partner services for limited partnerships.
 Prior to its bankruptcy, Cardinal was the nation's largest modular housing manufacturer and the second-largest apartment developer. The company developed more than 1,000 properties in all, financed largely through the investments of limited partners. Changes in tax laws in 1986 removed the incentive for real estate limited partnership investments, which triggered cash flow problems for Cardinal and its subsidiaries. Cardinal filed for bankruptcy protection in May 1989.
 The restructured company now is owned primarily by the unsecured creditors of Cardinal Industries, who were awarded shares now traded in the over-the-counter market.
 Now, as property manager for about 560 partnerships involving 9,000 limited partners owned properties with about 37,000 rental units, Cardinal ranks 18th among the nation's apartment managers.
 -0- 3/31/93
 /CONTACT: Brenda Tragon, Investor Services, Cardinal Realty Services, Inc., 614-575-5241/
 (CNRV)


CO: Cardinal Realty Services, Inc. ST: Ohio IN: SU: RCN

ML -- DE016 -- 1511 03/31/93 12:41 EST
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Date:Mar 31, 1993
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