DDRC dismissed from First Union lawsuit

Business Wire, Nov 2, 1995

CLEVELAND--(BUSINESS WIRE)--Nov. 2, 1995--Developers Diversified Realty Corporation ("DDRC") is pleased to announce that all claims filed against DDRC, Mr. Bert L. Wolstein, Mr. Scott A. Wolstein, Heritage Capital Corporation and the Wolstein Group (collectively the "Wolstein Defendants") by First Union Real Estate Equity and Mortgage Investments ("First Union") have been dismissed by the United States District Court. In rendering its decision, the Court ordered that First Union could not refile any of its claims.

The lawsuit involved allegations by First Union that Mr. Richard M. Osborne, Mr. Mark Escaja and the Wolstein Defendants had violated federal securities laws by engaging in a secret plot to acquire control of First Union. The Wolstein Defendants denied from the outset that they had ever participated in such a conspiracy. Mr. Bert L. Wolstein, Chairman of the Board of DDRC, said of the Court's decision: "As we have said repeatedly, all claims made by First Union were spurious. The Court, in essence, concluded that these claims had so little merit that a trial wasn't justified."

Attorneys for the Wolstein Defendants are examining the possibility of filing defamation and abuse of process claims against First Union and its President/CEO, James C. Mastandrea. The District Court had previously concluded that these claims were better suited for state court.

Developers Diversified Realty Corporation is a self-administered and self-managed Real Estate Investment Trust ("REIT") operating as a fully-integrated real estate company which acquires, develops, owns, leases, and manages shopping centers and business centers.

CONTACT: Developers Diversified Realty Corporation, Cleveland

Scott A. Wolstein, 216/247-1703