HTL Heartland Prtns Lp

Heartland Partners Announces Sale of Scattered Properties, Sale of Remaining Washington State Residential Property CHICAGO, July 6 /PRNewswire-FirstCall/ -- Heartland Partners, L.P. (AMEX:HTL) today announced it has sold most of its approximately 13,000 acres of scattered sites as well as the remaining 14 acres of its Fife, Washington, residential development. The properties were sold to Ox Bow, LLC, and Railroad Properties, LLC, both of Centralia, Washington, for $500,000 cash. The buyers also assumed liabilities related to the properties, including a $250,000 local improvement district assessment in Fife and accrued but unpaid real estate taxes. "The sale of these properties is a positive step forward for the company that will reduce our operating costs and the risks associated with the ownership and management of a large portfolio of small sites spread over a dozen states," said Lawrence Adelson, chief executive officer. "Our goal remains to continue pursuing sale of all of our development properties with an eye on making cash distributions to our unit holders when conditions warrant it." Adelson said a total of 18 prospective buyers were offered the properties, with four making proposals and two of them withdrawing during due diligence. Excluded from the sale of scattered properties were those already under contract for sale for about $300,000 in cash payable at closing. The sales did not include the assumption of liabilities related to known environmental problems on some sites or approximately 100 acres formerly leased to bulk oil station operators, farm supply stores, chemical companies and other users that potentially could have resulted in environmental problems. The company is negotiating with other parties for the sale of the 100 acres of former lease sites and its sites with active environmental concerns. The company also owns three parcels at its Kinzie Station development in Chicago that are under contract for about $10 million; a 20-acre site in Glendale, Wisconsin; and certain fiber optic rights along about 70 miles of railroad rights of way in the Chicago metropolitan area. The company also has lawsuits pending against the Redevelopment Authority of the City of Milwaukee and the Southeastern Wisconsin Professional Baseball Park District in connection with the eminent domain acquisition of Heartland's 150-acre Menomonee Valley property in Milwaukee. Heartland Partners is a Chicago-based real estate partnership with properties in 14 states, primarily in the upper Midwest and northern United States. CMC Heartland is a subsidiary of Heartland Partners, L.P. CMC is the successor to the Milwaukee Road Railroad, founded in 1847. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press 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, Heartland or its management "believes," "expects," "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. For more information on Heartland Partners, L.P., see the company's most recent reports on Forms 10-K and 10-Q, which may be found at http://www.sec.gov/ . DATASOURCE: Heartland Partners, L.P. CONTACT: Richard Brandstatter, President of Heartland Partners, L.P., +1-312-575-0400; or Karl Plath or Brien Gately of The Investor Relations Co., +1-847-296-4200

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