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CRIIMI MAE EXPANDS PLAN TO SELL A PORTION OF ITS SUBSIDIARY STOCK

 ROCKVILLE, Md., Oct. 1 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE: CMM), the largest multifamily mortgage REIT, has expanded its plan to sell a portion of its stake in its primary subsidiary, CRI Liquidating REIT, Inc. (NYSE: CFR).
 CRIIMI MAE is seeking to sell 3.45 million or nearly 18 percent of its approximately 20 million common shares in CRI Liquidating REIT. Previously, CRIIMI MAE had announced it was seeking to sell 3 million or nearly 15 percent of its subsidiary's common shares.
 CRIIMI MAE has also granted the underwriters a 30-day option to purchase up to 525,000 additional shares of its subsidiary's common stock to cover over-allotments.
 The underwriters for the stock sale will be Merrill Lynch & Co. and Dean Witter Reynolds Inc.
 CRI Liquidating REIT, Inc., is issuing a separate news release on this plan.
 After CRIIMI MAE sells 3.45 million Liquidating REIT shares, CRIIMI MAE will own approximately 55.6 percent of CRI Liquidating's outstanding common stock. There will be no change in the number of either CRIIMI MAE or Liquidating REIT shares issued and outstanding as a result of this sale.
 The registration statement has not yet become effective.
 Under the terms of the Registration Rights Agreement between the two companies, CRIIMI MAE is paying the fees and expenses of registering and selling the shares. CRIIMI MAE will receive all of the net proceeds from the sale of shares.
 CRIIMI MAE intends to use the proceeds from the sale of Liquidating REIT shares primarily to purchase insured mortgages, which CRIIMI MAE may then pledge as collateral in secured financings. CRIIMI MAE believes that it will be able to secure more favorable terms for its financings by pledging the assets it purchases with the proceeds of this offering rather than pledging the shares of its subsidiary.
 These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.
 -0- 10/1/93
 /CONTACT: James T. Pastore, 301-231-0323, or Susan B. Railey, 301-468-3120, both for CRIIMI MAE/
 (CMM CFR)


CO: CRIIMI MAE Inc.; CRI Liquidating REIT, Inc. ST: Maryland IN: FIN SU:

KD-DC -- DC011 -- 7722 10/01/93 10:45 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
Words:415
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