ATLANTIC REALTY TRUST 747 THIRD AVENUE NEW YORK, NEW YORK 10017 (212) 355-1255 FOR IMMEDIATE RELEASE ATLANTIC REALTY TRUST ANNOUNCES LETTER OF INTENT WITH MAJOR RETAILER -------------------------------------------------------------------- NEW YORK, NY, JULY 15, 2004 - ATLANTIC REALTY TRUST, A REAL ESTATE INVESTMENT TRUST WHICH IS INCLUDED FOR QUOTATION ON THE NASDAQ SMALL CAP MARKET (ATLRS), TODAY ANNOUNCED IT HAS ENTERED INTO A LETTER OF INTENT WITH A MAJOR U.S. RETAILER TO LEASE APPROXIMATELY 104,000 SQUARE FEET OF BUILDING AREA LOCATED IN THE HYLAN PLAZA SHOPPING CENTER, THE TRUST'S SOLE ASSET, CURRENTLY OCCUPIED BY K-MART. IF CONSUMMATED, THE LEASE WILL RUN FOR THIRTY YEARS AT CURRENT MARKET RENTS AND WILL INCLUDE ADDITIONAL RENEWAL OPTIONS. IN ADDITION, THE CURRENT K-MART LEASE WILL BE TERMINATED. THERE IS NO ASSURANCE THE PARTIES WILL ENTER INTO THE LEASE. FOR FURTHER INFORMATION CONTACT EDWIN R. FRANKEL AT (212) 702-8561.