FOR IMMEDIATE RELEASE

                                CONTACT:      Brenda Abuaf
                                              Director of Shareholder Services
                                              Aegis Realty, Inc.
                                              (800) 831-4826

        AEGIS REALTY, INC. ARRANGES A $40 MILLION LINE OF CREDIT
        WITH BANKBOSTON, N.A.

        New York, New York November 17, 1997 -- Aegis Realty, Inc. ("Aegis"), a
publicly traded diversified real estate investment trust, (AMEX:AER) has been
approved for a $40 million senior revolving credit facility from BankBoston N.A.
The facility's interest rate is expected to float 0.5% under BankBoston's base
rate but also may be fixed in 30-, 60-, 90- and 180-day periods at 1.625% over
the indicated Euro-contract rate. Leverage will not exceed 50% of Aegis' Total
Market Value as of the date incurred.

        The credit facility will be used to finance acquisitions of retail and
multifamily properties, with a strong focus on neighborhood shopping centers.

        Aegis' current diversified portfolio includes direct or indirect
interests in 14 neighborhood shopping centers, two garden apartment complexes
and three participating Federal Housing Administration (FHA) co-insured mortgage
loans. The portfolio has a net asset value of approximately $121,000,000.

        "With the additional capital from the BankBoston facility, Aegis intends
to aggressively grow its portfolio through the acquisition of existing
properties," said J. Michael Fried, Chairman of the Board of Directors and Chief
Executive Officer of Aegis. "In the future, Aegis intends to increase the size
of the BankBoston credit facility to keep pace with the company's aggressive
acquisition program."

        "This facility from BankBoston will provide us with the resources
necessary to implement our business plan to actively acquire retail and
multifamily properties," said Stuart J. Boesky, President and Chief Operating
Officer of Aegis. "Aegis will now be in a position to grow substantially over
the next year. With the facility in place, we plan on targeting properties that
will give us a yield that exceeds our cost of funds, which in turn will augment
Aegis' earnings."

        Aegis and BankBoston intend to close the Facility in December although
no assurance can be given regarding the exact timing of such events.

        Certain items in this press release may constitute forward-looking
statements within the meaning of the Private Litigation Reform Act of 1995 and
as such may involve known and unknown risk, uncertainties and to other factors
which may cause the actual results, performance or achievements of the Aegis to
be materially different from any future results, performances, or achievements
expressed or implied by such forward-looking statements. Such forward-looking
statements speak only as of the date of this press release Aegis expressly
disclaims any



obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the Aegis'
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.