"The board believes terminating the 'poison pill' is in the bestinterest of all shareholders because it enhances ouraccountability," says Paul Gray, chairman of the board of MalanRealty Investors. "The slate elected to the board of directors lastspring pledged to reinvigorate the process of enhancing shareholdervalue and we have taken this important step toward this goal. "

Terminating the plan was not taken in response to any specificoutside effort to increase ownership of the company and the boardis not aware of any such effort, Gray notes.

Under the former plan, a special dividend distribution of oneright to purchase one one-thousandth of a share of Malan's Series AJunior Participating Preferred Stock for each outstanding commonshare of Malan at a purchase price of $42 would have beenexercisable if a person or group, without the prior approval of theboard of directors, had acquired 15% or more of Malan's commonstock or announced a tender offer that would, if consummated, haveresulted in the ownership of 15% or more of the company's commonstock.