Transcontinental Realty Fourth Quarter 2002 Net Income $.75 vs $.74 Net Loss in Fourth Quarter 2001; Twelve months 2002 Net Income of $.58 vs $2.28 Net Income in 2001

Dallas, Texas, UNITED STATES


DALLAS, April 1, 2003 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Tuesday reported net income of $6.15 million, or $.75 per share, on revenue of $20.84 million, for the fourth quarter ended Dec. 31, 2002, compared to a net loss of $6.10 million, or ($.74) per share, on revenue of $23.63 million for fourth quarter 2001.

For the twelve months ended Dec. 31, 2002, TCI reported net income of $4.66 million, or $.58 per share, on revenue of $110.04 million, compared to net income of $19.64 million, or $2.28 per share, on revenue of $117.74 million, for the comparable 12-month period in 2001.

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


 - Rental income of $20.59 million and $109.73 million, compared to
   $21.79 million and $115.44 million in 2001, due to sales of six
   commercial properties and 15 apartments in 2001 and decreased
   occupancy at the commercial properties and U.S. hotels, partially
   offset by the completion of construction of four apartments and a
   European hotel and higher rental rates at the commercial
   properties.  
 - Interest and other income of $1.32 million and $4.1 million,  
   compared to $671,000 and $2.92 million, due to funding seven loans
   in 2002.
 - Equity in income (loss) of investees of ($1.07) million and ($3.82)
   million, compared to $1.16 million and ($628,000) in the 2001
   comparable periods.

Total expenses for the fourth quarter and twelve months of 2002 were $31.27 million and $146.94 million, compared to $34.51 million and $147.59 million for the 2001 periods. Total expenses included:


 - Operating expenses of $13.71 million and $71.02 million, compared
   to $14.85 million and $68.51 million in the 2001 periods. 
 - Provision for asset impairments of $700,000 and $2.58 million that 
   represented the write down of five apartments and one land parcel
   to current estimated fair value.  No provision for asset impairment
   was recorded in the 2001 periods.
 - Interest expense of $10.78 million and $38.96 million, compared to
   $7.72 million and $36.81 million in the 2001 periods, due to costs
   related to refinancing properties in 2002, the 2001-2002 purchase
   of 14 properties subject to debt and an interest swap agreement on
   newly built apartments.  The 2002 increases were partially offset
   by lower variable interest rates, principal paydowns and sales of
   property subject to debt. 
 - Depreciation of $4.91 million and $19.04 million increased,
   compared to $3.73 million and $17.14 million in the 2001 periods,
   due to the purchase of seven properties subject to depreciation in
   2001-2002, the completion of five construction projects and capital
   improvements in the office buildings and hotels.
 - General and administrative expenses of $2.09 million and $8.77
   million declined, compared to $3.90 million and $11.50 million in
   the 2001 periods, due to decreases in consultant fees and taxes and
   cost reimbursements to the advisor.
 - Advisory, net income and incentive fees totaling $619,000 and $4.84
   million, compared to $1.18 million and $10.36 million in the 2001
   periods. The lower total fees were due to a decrease in net income
   and incentive fees in 2002.

Properties sales in the fourth quarter and twelve months of 2002 included:


 - Loss from operations of $1.04 million and $2.21 million, compared
   to income of $989,000 and $703,000 in 2001.
 - Gains of $16.63 million and $38.95 million, compared to $4.12
   million and $48.96 million in the 2001 periods.  Sold in 2002 were
   12 apartments, three office buildings, two industrial warehouses
   and four parcels of land.
 - Equity in investees gains on sale of real estate of $1.91 million
   and $5.01 million in 2002.

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide. For more information, go to the web site at www.transconrealty-invest.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            $   20,585   $   21,793    $  109,726   $  115,439
 Expense from
  operations           13,708       14,845        71,018       68,510
                   ----------   ----------    ----------   ----------
   Operating income     6,877        6,948        38,708       46,929

 Other income
 (loss)            $      254   $    1,832    $      313   $    2,296
 Gain on the sale
  of real estate         --          4,118          --         48,961
 Other expense         17,559       19,660        75,923       79,078
                   ----------   ----------    ----------   ----------
 Net income (loss)
  from continuing
  operations          (10,428)      (6,762)      (36,902)      19,108

 Discontinued
  operations           16,628          810        41,753          703

 Net income
  (loss)           $    6,200   $   (5,952)   $    4,851   $   19,811
 Preferred
  dividend
  requirement             (55)        (150)         (190)        (172)
                   ----------   ----------    ----------   ----------
 Net income (loss)
  applicable to
  Common shares    $    6,145   $   (6,102)   $    4,661   $   19,639
                   ==========   ==========    ==========   ==========
 Basic Earnings
  Per Share
  Net income (loss)
   from continued
   operations      $    (1.28)  $     (.84)   $    (4.60)  $     2.24
  Net income from
   discontinued
   operations            2.03          .10          5.18          .08
                   ----------   ----------    ----------   ----------
  Net income
   applicable to
   Common shares   $      .75   $     (.74)   $      .58   $     2.32
                   ==========   ==========    ==========   ==========

 Diluted Earnings
  Per Share
  Net income (loss)
   from continued
   operations      $    (1.28)  $     (.84)   $    (4.60)  $     2.20
  Net income from
   discontinued
   operations            2.03          .10          5.18          .08
                   ----------   ----------    ----------   ----------
  Net income
   applicable to
   Common shares   $      .75   $     (.74)   $      .58   $     2.28
                   ==========   ==========    ==========   ==========
 Weighted average
  common shares
  used to compute
  earnings per
  share
   Basic            8,193,333    8,245,946     8,057,361    8,478,377
   Diluted          8,193,333    8,245,946     8,057,361    8,615,465
                    

        

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