EXPLANATORY NOTE

     On May 30, 2003, the  California  Superior Court ordered that the following
letter  be  sent  to the  limited  partners  of  the  Partnership,  based  on an
application  to the Court by the general  partners of the  Partnership  claiming
that a previous  letter sent to limited  partners by the same parties on May 23,
2003 was incorrect and misleading in certain respects.

     The  filing  persons  filed a writ with the Court of  Appeals to appeal the
Superior  Court's  order,  and asked  both the  Superior  Court and the Court of
Appeals for a stay of the Superior  Court's order until action could be taken on
the writ.  Both the  Superior  Court and the Court of Appeals  declined to grant
such a stay  prior to the  deadline  for  mailing  the  letter  pursuant  to the
Superior  Court's  original  order;  however,  the writ remains pending with the
Court of Appeals at this time.

     Therefore,  in order  to  comply  with  the  Superior  Court's  order,  the
following letter was sent to limited partners. The statements made in the letter
are those that the Court ordered the signatories to make. The signatories to the
letter do not intend to imply they  agree  with the  statements  therein or that
they are making  any  admission  of any kind;  nor do they  intend to admit,  by
making this filing, that the letter constitutes solicitation materials.





EVEREST
155 N. LAKE AVE., #1000
PASADENA, CA 91101
PHONE: 626-585-5920
FAX: 626-585-5929


                                    May 30, 2003

TO THE LIMITED PARTNERS OF
DSI REALTY INCOME FUND VI
DSI REALTY INCOME FUND VII
DSI REALTY INCOME FUND VIII
DSI REALTY INCOME FUND IX
DSI REALTY INCOME FUND X
DSI REALTY INCOME FUND XI

         Re:      COURT ORDERS CORRECTIVE STATEMENT

Dear Limited Partner:

     On May  23,  2003,  we  sent  you a  letter  that  misrepresents  that  the
California Superior Court had ruled against the General Partners' Proposal.  The
letter also  incorrectly  implied that the Court had concluded that the proposed
amendment was "very damaging to all of our limited  partnership  interests," and
that the  Court's  decision  was in part  based  upon  claims  that the  General
Partners  violated the federal  securities  laws.  Each of these  statements  is
misleading and the Court has asked us to correct them.

     On My 23, the Court did not take a position as to the merits of the General
Partners'  Proposal or rule against it.  Instead,  the Court simply  ordered the
General  Partners  not to  implement  the  Proposal  prior  to a  court  hearing
scheduled for June 13, 2003 to consider whether a preliminary  injunction should
issue  pending a trial on the merits of the claims  that we filed.  The  Court's
temporary order states as follows:

          "YOU ARE HEREBY ORDERED,  until further  notice,  not to implement any
     amendment  to  the   partnership   agreements  of  the  following   limited
     partnerships, that would give the General Partners a right of first refusal
     to buy limited partnership units:

     DSI Realty Income Fund VI ("DSI 6")
     DSI Realty Income Fund VII ("DSI 7")
     DSI Realty Income Fund VIII ("DSI 8")
     DSI Realty Income Fund IX ("DSI 9")
     DSI Realty Income Fund X ("DSI 10")
     DSI Realty Income Fund XI ("DSI 11")"

     The  Court's  May 23  ruling  had no effect on the  voting to  approve  the
General Partner's  Proposal.  Your vote is important and both we and the General
Partners  encourage  you to send in  your  proxy  indicating  your  approval  or
rejection of the Proposal if you have not already done so.

                                    Very truly yours,
                                    MILLENIUM INVESTORS 2, LLC
                                    EVEREST INVESTORS 3, LLC
                                    EVEREST INVESTORS 8, LLC
                                    KM INVESTMENTS, LLC