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CHAMPS REPORTS FIRST QUARTER CASH FLOW OF 16 CENTS PER SHARE

 CHAMPS REPORTS FIRST QUARTER CASH FLOW OF 16 CENTS PER SHARE
 ROCKVILLE, Md., May 29 /PRNewswire/ -- Capital Housing and Mortgage Partners, Inc. (CHAMPS) (AMEX: CAP), a self-liquidating real estate investment trust, said today that cash flow from operations for the three months ended March 31, 1992, was $782,373 (16 cents per share) vs. $899,844 (18 cents per share) for the same period of 1991.
 Cash flow from operations, rather than net income, is the basis for paying shareholder dividends. Cash flow from operations is comprised of regular interest income, principal from mortgage investments, amortization of deferred costs, and proceeds from mortgage dispositions.
 Net income decreased compared to last year's first quarter primarily due to the default of two mortgages which back GNMA-guaranteed mortgage-backed-securities owned by CHAMPS.
 In each case, GNMA guarantees 100 percent of the mortgage face value. However, the two dispositions resulted in losses primarily because they triggered the recognition of fees and the write off of unamortized costs.
 As a result of the Oak Hills Village mortgage default, CHAMPS received proceeds from GNMA totaling approximately $2.0 million, resulting in a first quarter financial statement loss of $70,316. CHAMPS will distribute net principal of 38.8 cents per share from the Oak Hills disposition with its second dividend of the year, payable June 30, 1992.
 As a result of the Montpelier Woods Apartments mortgage default, CHAMPS expects to receive disposition proceeds late in 1992 totaling approximately $5.6 million. This disposition is expected to result in a loss of approximately $174,000 -- recognized for financial statement purposes in the first quarter and for tax purposes later in the year when CHAMPS expects to receive disposition proceeds from GNMA. CHAMPS expects to distribute the proceeds to shareholders after receipt of the proceeds.
 CHAMPS is a self-liquidating real estate investment trust which invested in government insured mortgage loans, GNMA guaranteed mortgage-backed securities, and participating mortgage investments.
 Management estimates the current market value of the mortgages and other net assets of CHAMPS as of April 28, 1992, the most recent valuation date, to be approximately $42.6 million or $8.55 per share. The CHAMPS portfolio consists of 10 federally insured mortgages, one asset held for disposition (Montpelier Woods), and cash totaling 38.8 cents per share which was received from the Oak Hills disposition.
 Of the 10 mortgage investments owned by CHAMPS, two were purchased at an average of 83.4 percent discount to par and have effective interest rates of 9.28 percent and 9.72 percent. Seven were purchased at or near par, with effective interest rates ranging from 10.00 percent to 10.43 percent. One was a participating mortgage investment purchased at par, with an effective interest rate of 8.5 percent.
 CAPITAL HOUSING AND MORTGAGE PARTNERS, INC.
 (CHAMPS)
 For the three months ended
 March 31,
 1992 1991
 (Unaudited)
 Cash Flow
 Tax basis income (includes $70,316
 loss resulting from mortgage
 disposition) $ 546,230 $ 765,479
 Other cash flow 236,143 134,365
 Total cash flow $ 782,373 $ 899,844
 Tax basis income per share outstanding
 (includes approximately $.014 per
 share loss resulting from mortgage
 disposition) $ 0.11 $ 0.15
 Other cash flow per share 0.05 0.03
 Total cash flow per share $ 0.16 $ 0.18
 Dividends paid per share(A) $ 0.117 $ 0.122
 Net Income
 Gross income $ 898,708 $ 906,274
 Net income before
 mortgage dispositions $ 687,342 $ 719,660
 Losses from mortgage dispositions
 ($70,316 and $174,000 resulting
 from two mortgage dispositions) (243,948) --
 Net income $ 443,394 $ 719,660
 Net income per share $ 0.09 $ 0.14
 Weighted average shares outstanding 4,981,752 4,981,752
 As of
 March 31, March 31,
 1992 1991
 (Unaudited) (Unaudited)
 Investment in mortgages and limited
 partnerships, net:
 Carrying value $33,819,597 $42,192,218
 Assets held for disposition 7,610,848 --
 Total assets $42,719,092 $43,652,718
 (A) For the two-month period ended Feb. 29, 1992, and Feb. 28, 1991, respectively.
 -0- 5/29/92
 /CONTACT: James T. Pastore, 301-231-0323, or Susan J. Bressler, 301-468-3120, for Capital Housing and Mortgage Partners/
 (CAP) CO: Capital Housing and Mortgage Partners, Inc. ST: Maryland IN: SU:


DC -- DC003 -- 5059 05/29/92 08:34 EDT
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Date:May 29, 1992
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