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HOUSTON-In the continuing battle between a local REIT and itsformer parent, Whitestone REIT, previously Hartman CommercialProperties REIT, has won the first round in court. A preliminaryinjunction has been issued to prohibit Allen R. Hartman, formerchairman and CEO, from continuing a proxy consent solicitationtargeting removal of the current board and CEO.

Since the REIT's split last fall from Hartman Management Inc.,Allen Hartman has attempted to remove the board through proxyconsent rather than a formal meeting. US District Judge Vanessa D.Gilmore for the Southern District of Texas in Houston has ruled,however, that Allen Hartman's proxy solicitation was invalid underthe company's current bylaws and declaration of trust. The courthas affirmed changes to the company'sbylaws in December 2006 were permissible underanti-takeover statutes for Maryland, where Whitestone isincorporated.