EXHIBIT 99.1

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

                  AEGIS REALTY, INC. ANNOUNCES AGREEMENT TO
                  PURCHASE TWO NEIGHBORHOOD SHOPPING CENTERS

NEW YORK, NEW YORK - December 29, 1997 - Aegis Realty, Inc., a nationally
diversified real estate investment trust, (AMEX:AER) announced that it has
entered into binding agreements to purchase two neighborhood shopping centers
totaling over 192,000 square feet of retail space. The two centers, located in
Newton, North Carolina, and Virginia Beach, VA, have a combined purchase price
of $8,615,000 and are both anchored by supermarkets with investment grade credit
ratings.

Aegis intends to close both  acquisitions  within the next two weeks  although
no assurance  can be given  regarding  the exact  timing of such events.  Both
properties will be managed by an affiliate of Aegis.

Aegis will acquire The Market Place, a 125,095 square foot neighborhood shopping
center in Newton, North Carolina, from WHMBL Real Estate Limited Partnership for
$5.4 million. The center, located on US Highway 321 is 4 miles from Hickory,
N.C., the 4th largest metropolitan statistic area in North Carolina. The Market
Place is anchored by Bi-Lo Supermarket, Big Lots, and Duo Drugs and is currently
76.8% leased.

Aegis will also acquire Birdneck Center, a 67,060 square foot shopping center in
Virginia Beach, VA from Peoples Southwest Real Estate Limited Partnership for
$3.215 million. Birdneck is located 1 1/4 miles west of the Virginia Beach
resort oceanfront. The center, anchored by Food Lion and Revco, is currently 98%
leased.

"The acquisition of these two centers represents a strong beginning to Aegis'
acquisition program," said Stuart J. Boesky, President and Chief Operating
Officer of Aegis. "These acquisitions are consistent with the Company's business
plan to acquire centers which are immediately accretive to FFO (funds from
operation), but at the same time offer future upside potential. The Virginia
Beach center contains two out-parcels for future development or sale. The center
will also benefit from the rapid improvements being made to the Virginia Beach
ocean front. The Newton center contains 29,000 square feet of leasable vacant
space suitable for a number of regional or national tenants."

The acquisitions are expected to provide Aegis with an immediate 10.12% cash on
cash return for Market Place and 10.00% for Birdneck Plaza.

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 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.