Income Opportunity Reports 2002 Net Income of $1.45 vs. $2.32 Net Loss in 2001; Fourth Quarter 2002 Net Loss of $.60 vs. $.18 Net Loss in Fourth Quarter 2001


DALLAS, April 1, 2003 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Tuesday reported net income of $2.09 million, or $1.45 per share, on revenue of $11.02 million for the year ending December 31, 2002, as compared to a net loss of $3.46 million, or ($2.32) per share, on revenue of $10.36 million for the comparable period in 2001.

IORI reported a fourth quarter 2002 net loss of $860,000, or ($.60) per share, on revenue of $2.92 million, compared to a fourth quarter 2001 net loss of $264,000, or ($.18) per share, on revenue of $2.57 million.

In the twelve months of 2002, a $7.15 million gain on the sale of certain real estate contributed to a net income from discontinued operations of $6.68 million, or $4.64 per share.

Income in the 2002 fourth quarter and twelve months, compared to the same periods in 2001, included:



 - Rental income of $2.41 million and $9.88 million, compared to 
   $2.50 million and $10.18 million in 2001, due to lower occupancy 
   at the commercial properties.  Commercial property occupancy rates
   fell 7.8 percent in the twelve months between December 31, 2002,
   and 2001.
 
 - Equity in the income of equity partnerships of $771,000 and 
   $862,000, compared to $18,000 and a loss of $9,000 in the 2001 
   periods. 

Expense in the fourth quarter and 12 months of 2002 increased to $4.12 million and $15.61 million, from $2.87 million and $14.05 million in 2001, due to increased other expense. Total 2002 expense for the three months and twelve months included



 - Property operations expense of $1.50 million and $5.65 million,
   compared to $926,000 and $5.42 million in 2001, due to increased
   property taxes, utilities and insurance. 
 
 - Interest expense of $1.36 million and $4.72 million, compared to 
   $1.33 million and $5.20 million in 2002.

The twelve month period 2002 included:



 - A provision for loss of $1.57 million on a receivable.  No such
   provision was reported in the 2001 period. 
 
 - A net income fee to affiliate of $169,000 and an advisory fee to
   affiliate of $714,000 were paid to the advisor in the 2002 period.
   Only the advisory fee of $817,000 was paid in 2001.  The net income
   fee is based on 7.5 percent of net income and the advisory fee is
   based on gross assets.

Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment company that invests in equity interests in real estate through direct ownership and partnerships. For more information, go to the web site at www.incomeopp-realty.com.



                        FINANCIAL HIGHLIGHTS
       (dollars in thousands, except share and per share data)
 
                         Three months ended       Twelve months ended
                              December 31,             December 31,
                            2002         2001        2002        2001
                       ----------------------  ----------------------
 Income from rents     $    2,410  $    2,500  $    9,884  $   10,179
 Expense from
  operations                1,496         926       5,647       5,416
                       ----------  ----------  ----------  ----------
   Operating income           914       1,574       4,237       4,763
 
 Other income                 509          70       1,132         185
 Other expense              2,621       1,946       9,966       8,638
                       ----------  ----------  ----------  ----------
 Net loss from
  continuing 
  operations               (1,198)       (302)     (4,597)     (3,690)
 Net income (loss) 
  from discontinued 
  operations                  338          38        (470)        228
 Gain on sale of
  real estate                --          --         7,152        --
                       ----------  ----------  ----------  ----------
                              338          38       6,682         228
  
 Net income (loss)     $     (860) $     (264) $    2,085  $   (3,462)
                       ==========  ==========  ==========  ==========
  Earnings (Loss)
  Per Share
   Net loss from
    continuing 
    operations         $     (.83) $     (.20) $    (3.19) $    (2.47)
                       ==========  ==========  ==========  ==========
    Discontinued
     operations               .23         .02        4.64         .15
                       ----------  ----------  ----------  ----------
     Net income (loss) $     (.60) $     (.18) $     1.45  $    (2.32)
                       ==========  ==========  ==========  ==========
 Weighted average 
  common shares used 
  to compute earnings
  per share             1,438,945   1,493,675   1,438,945   1,493,675

            

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