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DETROIT-Officials at Malan Realty Investors Inc. said they are disappointed in arecent ruling giving the former company chief $1.4 million, but are resoluteto pay the money until an appeal is formulated.The company, a real estate investment trust that owns and manages retailproperties, has recorded the liability.

The Michigan Court of Appeals upheld a previous decision by the OaklandCounty Circuit Court granting summary disposition to Anthony Gramer, thecompany’s former president and CEO.He was fired in July 2000, but first was given a $1 millionchange-in-control payment as a result of a proxy contest that replaced thecompany’s board of directors with a new slate two months prior.

The court has ruled that Gramer was also entitled to a termination payment.The $1.4 million is that payment, said Malan officials, as well as interestaccrued.

New President and CEO Jeffrey Lewis said the companywill review its options for further appeal.

In August 2002, Malan’s shareholders approved a plan of completeliquidation. As a result of the court’s decision, the company announced itwas immediately lowering its estimated range of liquidating distributions by25 cents per share to $4.50 to $6.25 per share.

The company owns a portfolio of 43 properties located in eight states thatcontains an aggregate of approximately 4 million sf of grossleasable area.

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