Heartland Partners Announces Letter of Intent for $5 Million Sale of Property In Chicago for Supermarket; Details Major Proposed Residential Development.

CHICAGO, Oct. 11 /PRNewswire/ --

Edwin Jacobson, President and CEO of Heartland Partners, L.P. (Amex: HTL) announced today that the master limited partnership has entered into a letter of intent with Senco, a local developer, pursuant to which Senco will acquire land in CMC's Kinzie Station project and develop a 60,000 square foot food and drug store. The price for the property is approximately $5 million. The sale is expected to close in mid-2002, with construction of the store to start soon thereafter.

"Bringing a full-service food and drug store to this neighborhood is another step in our plan to build Kinzie Station as a community for Chicago's families," said Jacobson. "Kinzie Station residents will enjoy the advantages of convenience, selection and price for their daily needs. In addition, the store will draw other retail stores to the neighborhood and provide good jobs for people in this community."

CMC Heartland is developing Kinzie Station on property it owns on Chicago's near west side. The company has approval for 450 residential units, of which 188 have been built and 180 sold. CMC has filed with the City of Chicago for approvals for an additional 1700 residential units along with neighborhood retail, public parking and recreational amenities including two public parks.

Repurchase Plan for Class A Units

As previously announced, the Partnership has been authorized by its General Partner, Heartland Technology, Inc., to purchase up to 50,000 of the Partnership's outstanding Class A Units. The Units may be purchased from time to time in the open market or in privately negotiated transactions, depending on market conditions.

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