Meruelo Maddux Properties Announces Cash Proceeds From a FedEx Property Sale

    LOS ANGELES, Aug. 21 /EMWNews/ -- Meruelo Maddux

Properties, Inc. (Nasdaq: MMPI), a self-managed, full-service real estate

company that develops, redevelops and owns commercial and residential

properties, today announced the receipt of an additional approximate $5.3

million in cash proceeds from the sale of a property located at 2000 San

Fernando Road that is 100% occupied by FedEx. MerueloMaddux has now

received a total of approximately $20.3 million in cash proceeds from this

transaction. As previously discussed in MerueloMaddux's Form 10-Q for the

second quarter ended June 30, 2008 under "Related Party Transactions", this

sale was part of a related party interim financing transaction. As such,

this FedEx property was re-sold by the related party to a third party for

$35.0 million or approximately $293 per net rentable square foot on August

15, 2008. MerueloMaddux purchased this property in April of 2007 for $20.0

million. MerueloMaddux will book a gain on sale of approximately $14.3

million in the third quarter ended September 30, 2008 related to this

transaction.

    About Meruelo Maddux Properties



    Meruelo Maddux Properties is a self-managed, full-service real estate

company that develops, redevelops and owns commercial and residential

properties in downtown Los Angeles and other densely populated urban areas

in California that are undergoing demographic or economic changes. Meruelo

Maddux Properties is committed to socially responsible investment. Through

its predecessor business, Meruelo Maddux Properties has been investing in

urban real estate since 1972.



    Safe Harbor Statements



    This press release, together with other statements and information

publicly disseminated by the Company, contains certain forward-looking

statements within the meaning of Section 27A of the Securities Act of 1933,

as amended, and Section 21E of the Securities Exchange Act of 1934, as

amended. The Company intends such forward-looking statements to be covered

by the safe harbor provisions for forward-looking statements contained in

the Private Securities Litigation Reform Act of 1995 and includes this

statement for purposes of complying with these safe harbor provisions.

Forward-looking statements in this press release include statements about

the accounting treatment of the FedEx property sale. You should not rely on

forward-looking statements since they involve known and unknown risks and

liquidity, uncertainties and other factors that are, in some cases, beyond

the Company's control and which could materially affect actual results,

performances or achievements. You should carefully consider these risks

before you make an investment decision with respect to the Company's common

stock, along with potential changes to generally accepted accounting

principles generally accepted in the United States that could cause actual

results to vary from the Company's forward-looking statements. Except as

otherwise required by the federal securities laws, the Company disclaims

any obligation or undertaking to publicly release any updates or revisions

to any forward-looking statement contained herein (or elsewhere) to reflect

any change in the Company's expectations with regard thereto or any change

in events, conditions or circumstances on which any such statement is

based.