Exhibit 7.01

September 29, 2010

Board of Directors of
AMREP Corporation
300 Alexander Park
Suite 204
Princeton, NJ 08540

Dear Sirs:

Reference is made to my September 8, 2010 letter setting forth the basis upon which I proposed to acquire the outstanding stock of AMREP Corporation that I do not own. In light of the current level of the stock price, and in deference to the views about my proposal expressed by certain stockholders, I have decided to withdraw and not pursue my proposal at this time.

I look forward to continuing to work with my fellow Board members in the best interests of AMREP’s stockholders.

Sincerely,

/s/ Nicholas G. Karabots

Nicholas G. Karabots