HTL Heartland Prtns Lp

CHICAGO, Nov. 14 /PRNewswire-FirstCall/ -- Heartland Partners, L.P. (AMEX:HTL) (the "Company") today reported preliminary unaudited results for the fiscal quarter and nine months ended September 30, 2005. The Company also announced a delay in the filing of its quarterly report on Form 10-Q with the Securities and Exchange Commission while it completes its financial statements. The Company reported a net loss for the quarter ended September 30, 2005 of ($534,000) with property sales of $490,000. The net loss will be allocated entirely to the Class B Limited Partner in accordance with the terms of the Company's partnership agreement. In comparison, operations for the quarter ended September 30, 2004, resulted in property sales of $126,000 and net income of $971,000. After allocations to the Class B Limited Partner and General Partner pursuant to the terms of the Company's partnership agreement, there was net income of $0.25 per Class A Unit for the third quarter of 2004. For the nine months ended September 30, 2005, the Company reported a net loss of ($1,006,000) with property sales of $4,863,000 and a gain on sale of buildings and improvements of $430,000. For the nine months ended September 30, 2004, the Company had net income of $551,000 with property sales of $3,992,000. The Company is in the process of attempting to sell the remainder of its real estate assets and resolve its environmental and other liabilities. The Company faces challenges and uncertainties as to the outcome of pending litigation, the resolution of pending environmental claims and liabilities and has generally experienced continued operating losses. The Company's management has taken, and intends to take additional steps, including reducing fixed overhead, to position the Company to deal with its current and expected financial condition. There is no guarantee, however, that any action taken by the Company's management will be successful. About Heartland Heartland Partners, L.P. is a Chicago-based real estate limited partnership with properties, primarily in the upper Midwest and northern United States. CMC Heartland is a subsidiary of Heartland Partners, L.P. and is the successor to the Milwaukee Road Railroad, founded in 1847. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as the company, the Company or its management "believes," "expects," "intends," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. The forward-looking statements included in this release are made only as of the date of publication, and the Company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances. -Tables Follow- HEARTLAND PARTNERS, L.P. FINANCIAL SUMMARY (amounts in thousands, except per unit data) (preliminary and unaudited) Summary Condensed Consolidated Operations For the Three Months Ended For the Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Operating income (loss) $(580) $1,096 $(1,448) $430 Total other income (expense) 46 (125) 442 121 Net income (loss) $(534) $ 971 $(1,006) $551 Net income per Class A Unit (a) $-- $0.25 $-- $0.25 Summary Condensed Consolidated Balance Sheets September 30, December 31, 2005 2004 Properties, net $2,260 $6,416 Cash and other assets (b) 5,699 5,257 Total assets 7,959 11,673 Total liabilities (c) 3,829 6,537 Partners' capital $4,130 $5,136 a) Net income (loss) per Class A Unit is computed by dividing net income (loss), allocated to the Class A limited partners, by 2,092,438 Class A limited partner units outstanding. The net income (loss) for the three months and nine months ended September 30, 2005 was allocated entirely to the Class B limited partner per the terms of the partnership agreement. b) Cash and other assets reflect an allowance of $7.334 million and $7.234 million for amounts due from affiliate at September 30, 2005 and December 31, 2004, respectively. c) Total liabilities include an allowance for claims totaling $2.365 million and $4.228 million at September 30, 2005 and December 31, 2004, respectively. DATASOURCE: Heartland Partners, L.P. CONTACT: Lawrence Adelson, Manager of CMC-Heartland Partners Holdings, Inc., its general partner, +1-312-834-0592, or, Brien Gately of The Investor Relations Co., +1-847-296-4200

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