Coventry Real Estate Advisors

Developers Diversified Realty and Coventry Real Estate Partners Announce Acquisition of Shopping Center Portfolio

CLEVELAND, Jul 31, 2002 /PRNewswire-FirstCall via COMTEX/ -- Developers Diversified Realty (NYSE: DDR) and Coventry Real Estate Partners announced today the acquisition of five properties from Lehman Brothers for approximately $81.65 million. The properties are located in Fort Worth, Texas; Dallas, Texas; Columbia, South Carolina; Birmingham, Alabama and Wichita, Kansas. Lehman Brothers acquired the shopping centers through foreclosure. Developers Diversified intends to consolidate the assets on its balance sheet.

Commenting on the transaction, Scott A. Wolstein, Chairman and CEO of Developers Diversified, said, "This transaction represents an opportunity to acquire a portfolio of well-located shopping centers with substantial leasing opportunities where the Company can enhance investment returns by taking advantage of its relationships with the nation's leading retailers. Our acquisition of these value-added assets will generate exceptional investment returns on our capital and provide shareholders with long-term value creation."

Peter Henkel, President of Coventry Real Estate Partners, commented, "We are excited about this acquisition because it represents a continuation of our strategy to acquire value-added real estate assets in partnership with Developers Diversified. We look forward to identifying additional opportunities like this one, capitalizing on the track record we have developed and the successful platform we have created for this investment strategy."

The shopping centers to be purchased are complementary to Developers Diversified's national operating platform and tenant base.

Property          Location         GLA(1)          Major Tenants

Fossil Creek        Fort Worth, TX      133,814      Albertson's, Eckerd Drug

Lakepointe

Crossing            Dallas, TX          557,051      Academy Sports, Best Buy,

                                                     PetsMart, Roomstore,

                                                     Mardel Christian Books,

                                                     Toys "R" Us, Pier One,

                                                     Olive Garden

Harbison Court      Columbia, SC        312,178      Barnes & Noble,

                                                     OfficeMax, Marshall's,

                                                     Rugged Wearhouse,

                                                     Hancock Fabrics, Shoe

                                                     Carnival, Babies "R" Us,

                                                     Pier One, Olive Garden

Riverchase

Promenade           Birmingham, AL      228,344      Marshall's, Michael's,

                                                     Toys "R" Us, Goody's

                                                     Family Clothing, Pier

                                                     One, Kids "R" Us

Eastgate Plaza      Wichita, KS         300,659      Barnes & Noble,

                                                     OfficeMax, T.J. Maxx,

                                                     Osco Drug, Famous

                                                     Footwear, David's Bridal,

                                                     Toys "R" Us, Burlington

                                                     Coat

Total                           1,532,046

(1) Includes property managed, but not owned.

Coventry Real Estate Partners is the general partner of a value-added investment fund. Coventry has acquired approximately $700 million in retail real estate assets across the country and is headquartered in New York, with additional offices in Cleveland, Ohio and Los Angeles, California.

Developers Diversified currently owns and manages approximately 345 retail properties in 43 states totaling over 62 million square feet. Developers Diversified is a self-administered and managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and manages shopping centers. Additional information about Developers Diversified is available on the Internet at www.ddrc.com.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21 E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property or the loss of a major tenant. For more details on the risk factors, please refer to the Company's Form 10-K as of December 31, 2001.

SOURCE Developers Diversified Realty Corporation 7/31/2002