FUR Winthrop Realty Trust New (delisted)

First Union Real Estate Equity and Mortgage Investments Announces Financial Results for Three and Twelve Months Ended December 31, 2003 BOSTON, March 11 /PRNewswire-FirstCall/ -- First Union Real Estate Equity and Mortgage Investments , a real estate investment trust, announced the operating results for the three and twelve months ended December 31, 2003. Financial results for the three and twelve months ended December 31, 2003 and 2002 are as follows: Three Months Ended Twelve Months Ended (in thousands) December 31, December 31, December 31, December 31, 2003 2002 2003 2002 Revenues $3,892 $4,701 $16,646 $18,701 Loss before gain on sale (1,019) (1,229) (5,956) (5,032) Gain on sale - - 54 - Net loss $(1,019) $(1,229) $(5,902) $(5,032) Net loss applicable to shares of bene- ficial interest $(1,535) $(1,745) $(7,966) $(7,099) Net loss applicable to shares of bene- ficial interest (per share) $(0.06) $(0.05) $(0.26) $(0.20) For the three months ended December 31, 2003, First Union's net loss applicable to shares of beneficial interest was $1.5 million compared to a net loss applicable to shares of beneficial interest of $1.7 million for the same period in 2002 due primarily to adecrease in expenses for the comparable periods. Net loss applicable to shares of beneficial interest for the three months ended December 31, 2003 and 2002 included $0.0 million and $0.4 million, respectively, of transaction costs related to the proposed transaction with Gotham Golf Corp., which are included in general and administrative expenses. In addition, the net loss applicable to shares of beneficial interest for the three months ended December 31, 2003 and 2002 included $0.1 million $0.5 million, respectively, of costs related to the lawsuits brought in connection with the Gotham transaction, which are included in general and administrative expenses. Property net operating income (which is defined as rent less operating expenses) and real estate taxes increased for the three months ended December 31, 2003 to $2.4 million from $2.3 million for the same period in 2002. The increase was attributable to lower real estate tax expense. VenTek's sales decreased for the three months ended December 31, 2003 to $76,000 from $0.7 million for the comparable period in 2002 and cost of goods sold decreased to $0.5 million from $1.3 million for the same period in 2002. The decrease in both sales and cost of goods sold is due to the winding down of VenTek's current contracts. Interest income decreased during the three months ended December 31, 2003, as compared to the same period in 2002, due primarily to lower cash balances maintained in 2003. During the three months ended December 31, 2003,the Trust used $12.538 million from its cash reserves to repay in full its senior notes. In addition, during this period, the Company closed its transactions under the previously announced Stock Purchase Agreement between the Trust and FUR Investors LLC including, without limitation, the acquisition by FUR Investors LLC purchased 5,000,000 newly issued common shares from the Trust at a price of $2.60 per share ($13,000,000 in the aggregate). The Combined Statements of Operations for First Union forthe three and twelve month periods ended December 31, 2003 and 2002 accompanies this release. Certain statements contained in this press release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Further information about these matters and the risks generally with respect to First Union can be found in First Union's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. First Union Real Estate Equity and Mortgage Investments is a NYSE-listed real estate investment trust (REIT) headquartered in Boston, Massachusetts. FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS Combined Statements of Operations (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2003 2002 2003 2002 Revenues Rents $3,660 $3,630 $13,916 $13,643 Sales 76 730 1,892 2,924 Interest and dividends 156 341 838 1,659 Other income - - - 475 3,892 4,701 16,646 18,701 Expenses Property operating 1,203 1,097 4,965 5,043 Cost of goods sold 525 1,354 3,279 4,892 Real estate taxes 99 225 773 899 Depreciation and amortization 549 537 2,161 2,077 Interest 943 1,217 4,551 5,102 General and administrative 1,592 1,500 6,873 5,720 4,911 5,930 22,602 23,733 Loss before gains on sales (1,019) (1,229) (5,956) (5,032) Gains on sales - - 54 - Net loss (1,019) (1,229) (5,902) (5,032) Preferred dividend (516) (516) (2,064) (2,067) Net loss applicable to shares of benef- icial interest $(1,535) $(1,745) $(7,966) $(7,099) Per share data Basic: Net loss applicable to shares of bene- ficial interest $(0.06) $(0.05) $(0.26) $(0.20) Diluted: Net loss applicable to shares of bene- ficial interest $(0.06) $(0.05) $(0.26) $(0.20) Basic weighted average shares 26,168 34,809 30,885 34,807 Diluted weighted average shares 26,168 34,809 30,885 34,807 DATASOURCE: First Union Real Estate Equity and Mortgage Investments CONTACT: Carolyn Tiffany, Chief Operating Officer of First Union Real Estate Equity and Mortgage Investments, +1-617-570-4614

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