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            FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
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FIRST UNION REAL ESTATE INVESTMENTS
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AT THE COMPANY                                             IN CLEVELAND, OHIO
- --------------                                             ------------------
Thomas T. Kmiecik                                          Stanley L. Ulchaker
Senior Vice President and Treasurer                        Edward Howard & Co.
(216) 781-4030                                             (216) 781-2400


FOR IMMEDIATE RELEASE

                  RUSSELL R. GIFFORD, TRUSTEE OF FIRST UNION,
                  -------------------------------------------
                    IS HELPING TO RESOLVE PROBLEMS AT VENTEK
                    ----------------------------------------

CLEVELAND, OHIO, APRIL 27, 1998 -- FIRST UNION REAL ESTATE INVESTMENTS
(NYSE:FUR) replies today to allegations by Gotham Partners, L.P., about the
relationship between Russell R. Gifford, a Trustee of First Union Real Estate
and chairman of the special Committee of the First Union Real Estate Board, and
VenTek International, Inc., a manufacturing subsidiary of Imperial Parking
Limited.

Mr. Gifford confirmed that, since January 1998, he has been helping to resolve
management and customer relations problems at VenTek. He has not asked for or
received any compensation for his services, although he was given the title of
Chief Executive Officer in order to facilitate his relationships with customers.
He is, however, being reimbursed for his out-of-pocket travel expenses.

James C. Mastandrea, chairman of the board and chief executive officer of First
Union Real Estate, stated, "It may be rare for a Company to obtain such
hands-on assistance from its Board members, but Russ has been more than willing
to help. This extraordinary service, without compensation, does not in anyway
constitute a conflict of interest or disqualify him as chairman of the special
committee."

To eliminate any suggestion of a conflict of interest, effective immediately
Mr. Gifford will no longer have any involvement with VenTek.

First Union Real Estate Investments is a unique stapled-stock real estate
investment trust (REIT) headquartered in Cleveland, Ohio, and traded on the New
York Stock Exchange.

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