Philips International Announces Settlement of Insurance Claim

Pursuant to the Company's plan of liquidation, its Board of Directors has declared a tenth liquidating distribution of $0.10 per share which will be payable on December 30, 2004. The record date is December 22, 2004. However, shareholders must continue to own their shares up to and including December 30, 2004 in order to be entitled to the liquidating distribution of $0.10 per share. Effective December 20, 2004, the Company's shares will be traded with due bills which will entitle the owner of the stock to receipt of the distribution. The Company has approximately 7.4 million shares of common stock and common stock equivalents which will participate in this distribution.

On October 10, 2000, the stockholders approved the plan of liquidation, which was then estimated to generate approximately $18.25 in the aggregate in cash for each share of common stock in two or more liquidating distributions. The Board of Directors subsequently advised shareholders to expect total distributions to be within 1% of this $18.25 estimate due to certain economic factors which arose following adoption of the plan of liquidation and which depressed retail rents and the Company's real property values. The tenth liquidating distribution declared by the Board of Directors brings the total payments to date to $18.10 per share. Prior distributions of $13.00, $1.00, $0.75, $0.50, $0.50, $0.50, $1.00, $0.50 and $0.25 per share were paid on December 22, 2000, July 9, 2001, September 24, 2001, November 19, 2001, October 22, 2002, March 18, 2003, September 16, 2003, January 6, 2004 and August 27, 2004, respectively. The amount and timing of any future distributions to shareholders, which in the aggregate are unlikely to exceed $0.05 per share, remain subject to (i) the Company's realization of certain claims for refund of real estate and transfer taxes paid, and (ii) the costs incurred to complete all wind-down activities and dissolve the corporation.

Note: Certain statements in this release regarding anticipated operating results and time are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the statements and projections are based upon reasonable assumptions, actual results may differ from those projected. Key factors that could cause actual results to differ materially include economic downturns, successful and timely completion of dispositions, leasing activities and other risks associated with the commercial real estate business, and as detailed in the Company's filings from time to time with the Securities and Exchange Commission.