Chancellor Corporation Announces the Signing of a $150 Million Contract

Released_By: USANews
Date: 6/25/98
Time: 3:47:54 AM

For_Immediate_Release

Chancellor Corporation NASDAQ OTC Bulletin Board symbol"CELR"
Sausalito, California January 21, 1997

Chancellor Corporation Announces the Signing of a $150 Million Contract

Chancellor Corporation announced today that the company has signed a contract to purchase 15 free-standing K-MART Retail Builders Square stores. The contracts are valued at $150 Million.

K-MART Corporation will execute and sign a triple net lease-back agreement for a period of 25 years on each store at the close of escrow. Chancellor Corporation shall retain all properties and leases for the entire period, with an annual yield of 10 1/2%.

Chancellor Corporation is a commercial real estate acquisition company with a focus of purchasing investment grade commercial real estate projects from major S&P A+ rated Corporations.

Visit the Chancellor website at http://www.celr.com

For more information, contact: GERALD COMMUNICATIONS Gerald Sterchi - Investor Relations Director E-Mail: gerald@geraldsnet.com