AZL Arizona Land Income Corp

Arizona Land Income Corporation (AMEX: AZL) has noticed the recent run-up in the market price of its common stock and has no explanation for such increase. Thomas R. Hislop, Chief Executive Officer and Chairman, notes that AZL is in the midst of a transaction with an affiliate of The Shidler Group whereby a newly created subsidiary of AZL would acquire interests in certain office properties in Honolulu, Phoenix and San Diego and AZL would change its name to �Pacific Office Properties Trust, Inc.� all on the terms and subject to the conditions in the Master Formation and Contribution Agreement dated October 3, 2006, as amended, between the parties. Mr. Hislop also noted that AZL recently declared a $1.00 per share nonrecurring dividend in lieu of regular quarterly dividends for the fourth quarter of 2006 and first quarter of 2007 and in anticipation of a change in the dividend policy of AZL following the consummation of the transaction contemplated with the affiliate of The Shidler Group. AZL anticipates that the new dividend policy may result in a smaller quarterly dividend in the near future. Material details of this transaction are disclosed in the company�s recent Current Reports on Form 8-k filed with the SEC. About Arizona Land Income Corporation Arizona Land Income Corporation is a real estate investment trust headquartered in Phoenix, Arizona. It is externally advised by ALI Advisors, Inc. and currently has a portfolio of real estate and other assets aggregating approximately $6 million. About The Shidler Group The Shidler Group is a private long-term investor in commercial real estate. Over the past 30 years, through its private and public affiliates, it has acquired, owned and managed more than 2,000 properties containing over 150�million square feet of leaseable area. Currently, The Shidler Group, through its affiliates, owns and manages commercial properties in Honolulu, Los Angeles, San Diego and Phoenix, and maintains offices in Honolulu, San Diego, Phoenix and New York. The Shidler Group has founded three publicly traded real estate investment trusts � Corporate Office Properties Trust (NYSE: OFC), First Industrial Realty Trust (NYSE: FR), and Tri Net Corporate Realty Trust (formerly, NYSE: TRI, now part of iStar Financial (NYSE: SFI)). The Shidler Group also founded Primus Guaranty, Ltd. (NYSE: PRS), a Bermuda-based holding company whose primary subsidiary, Primus Financial Products, is a $15 billion, AAA/Aaa rated provider of credit default protection. Additional Information and Where to Find It This press release does not constitute a solicitation for votes for the transaction. In connection with the proposed transaction, AZL expects to file a proxy statement regarding the proposed transaction with the Securities and Exchange Commission. Shareholders are urged to read the proxy statement, because it will contain important information about AZL and the proposed transaction. At the appropriate time, shareholders will be able to obtain a free copy of the definitive proxy statement and other documents filed by AZL with the SEC at the SEC�s website at www.sec.gov. The definitive proxy statement and other relevant documents will also be available, free of charge, from AZL by directing such request to Ms. Deanna Barela at (602) 952-6821 or dbarela@phsg.com. Shareholders are urged to read the proxy statement and other relevant material when they become available before making any voting decisions with respect to the transaction. AZL and its respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of AZL in connection with the transaction. Information about AZL and its directors and executive officers, and their ownership of AZL common stock, is set forth in the proxy statement for AZL�s Annual Meeting of Shareholders, which was filed with the SEC on November 14, 2005. Additional information regarding the interests of those persons may be obtained by reading the proxy statement when it becomes available.