EXHIBIT 99.1



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

                                       PRESS:   Elisabeth Philippe
                                                Morgen-Walke Associates
                                                (212) 850-5705


                  AEGIS REALTY, INC. ACQUIRES TWO NEIGHBORHOOD
                    SHOPPING CENTERS TOTALING $13.3 MILLION;
            MAKES FIRST ACQUISITION WITH OPERATING PARTNERSHIP UNITS;
                    CONTINUES DISPOSITION OF NON-CORE ASSETS

NEW YORK, NEW YORK - June 29, 1998 - Aegis Realty, Inc. (AMEX:AER) today
announced the acquisition of two neighborhood shopping centers totaling $13.3
million.

Governor's Square

Aegis acquired Governor's Square, a 183,339-square-foot neighborhood shopping
center located in Montgomery, Alabama, for $8.2 million. A portion of the
purchase price was paid in Operating Partnership Units, marking the first
acquisition for Aegis utilizing its UPREIT structure.

"The seller of Governor's Square had been a long term owner who took advantage
of Aegis' UPREIT structure to avoid negative tax consequences which occur when a
seller has a low adjusted tax basis in a property," said Paul Rutledge, Senior
Vice President of Aegis.

Located at one of the city's major retail intersections, Governor's Square is
contiguous to one of Montgomery's two regional malls. Currently the center is
86% leased and is anchored by Big Lots. Aegis' objective in acquiring the
property is to reposition the center and attract new "big-box" retailers who
typically chose locations that are peripheral to regional malls.

"Governor's Square has one of the best retail locations in the city and it is
clear to us that the property can be greatly enhanced through the implementation
of our redevelopment and releasing plan," said Stuart J. Boesky, President and
Chief Operating Officer of Aegis. "We are excited to have acquired a center that
is below replacement cost, is immediately accretive to FFO and has significant
upside potential,"

Marion City Square

Aegis also acquired Marion City Square, a 163,970-square-foot neighborhood
shopping center located in Marion, North Carolina, the county seat of McDowell
County, for $5.1 million in cash. Included in the purchase was an undeveloped
parcel of land adjacent to the center that Aegis will 


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ultimately use for expansion. Marion City Square is currently 83% leased and is
anchored by Bi-Lo, Dollar General and Roses.

"Like Governor's Square, we purchased this center below replacement cost.
Through our leasing efforts as well as the development of the additional parcel
of land, we see Marion City Square as a center that will provide Aegis with
significant upside," said Mr. Boesky.

Repayment of Cross Creek Apartments

Aegis also announced today that Walsh/Cross Creek L.P., the owner of Cross Creek
Apartments, has sold the property to a third party for $23.4 million and will
fully repay their outstanding debt due to Aegis. The mortgage on Cross Creek is
one of the three FHA co-insured mortgages that Aegis currently holds in its
portfolio.

Walsh/Cross Creek L.P. will use the proceeds from the sale of the property to
repay the approximately $22.1 million in obligations due to Aegis, including the
first mortgage note, the equity loan, an additional loan made by Aegis to
Walsh/Cross Creek L.P., and a prepayment penalty.

Aegis will use the repayment proceeds to reduce its outstanding debt under their
$40 million line of credit facility from BankBoston, N.A. This will provide
Aegis with additional capital to acquire neighborhood shopping centers.

 "The prepayment of the Cross Creek loan is consistent with our business plan to
dispose of non-core assets," said Mr. Boesky. The Cross Creek Loan had earned
Aegis an 8.95% annual yield. Currently, Aegis is acquiring neighborhood shopping
centers that, on average, have been providing Aegis with a minimum initial
annual cash-on-cash return of at least 10%. "As a fixed income instrument with
limited participation in the performance of the underlying property, the Cross
Creek loan did not provide Aegis with great potential for strategic growth,"
said Mr. Boesky.

"Aegis' recent activity is moving us closer to meeting our business objectives
for 1998, which are to acquire a minimum of $100 million of retail centers that
are immediately accretive to FFO and to dispose of certain non-core assets."

Aegis, a geographically diversified real estate investment trust, has property
holdings in 14 states. The company's current portfolio includes direct or
indirect interests in 20 neighborhood shopping centers, one garden apartment
complex and two participating Federal Housing Administration (FHA) co-insured
mortgage loans. Aegis is currently seeking retail acquisitions throughout the
continental United States.

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.


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