EXHIBIT (a)1


                 HALLWOOD REALTY PARTNERS, L.P. ISSUES STATEMENT

DALLAS, May 14, 2003 - Hallwood Realty Partners, L.P. (the "Partnership") today
issued the following statement:

"The Board of Directors of Hallwood Realty, LLC, the general partner of the
Partnership, has carefully considered the unsolicited tender offer for any and
all of the outstanding limited partnership units of the Partnership for
consideration of $100 per unit in cash, which was announced by High River
Limited Partnership, an affiliate of Carl C. Icahn, on May 1, 2003.

"Having completed its review, in consultation with its outside financial
advisor, Morgan Stanley & Co. Incorporated, the Board has concluded that the
offer is inadequate and unanimously recommends that unitholders of the
Partnership not tender their units in the offer."

The Partnership has today filed with the Securities and Exchange Commission a
Schedule 14D-9, which will be mailed to unitholders shortly and which sets forth
the factors that the Board considered in reaching its conclusion with regard to
the Icahn offer. Unitholders may also obtain copies of the Schedule 14D-9 by
contacting MacKenzie Partners, Inc. at 1-800-322-2885 toll-free or by email at
proxy@mackenziepartners.com.

The Partnership, a publicly traded Delaware limited partnership, is engaged in
the acquisition, ownership and operation of commercial real estate assets.

Certain statements in this news release may constitute "forward-looking
statements" which are subject to known and unknown risks and uncertainties
including, among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual results to
differ materially from results implied by such forward-looking statements. These
risks and uncertainties are described in greater detail in the Partnership's
periodic filings with the SEC.

Investor contact:  Bob Marese
                   MacKenzie Partners, Inc.
                   212-929-5405

Media contact:     Roy Winnick
                   Kekst and Company
                   212-521-4842