CEDAR INCOME FUND, LTD.
                          44 South Bayles Avenue, #304
                         Port Washington, New York 11050

                                                     Contact: Leo S. Ullman
                                                              President
                                                              (516) 767-6492

FOR IMMEDIATE RELEASE:

CEDAR INCOME FUND, LTD. - ANNOUNCES COMPLETION OF PURCHASE OF FAIRVIEW PLAZA
SHOPPING CENTER IN NEW CUMBERLAND, PENNSYLVANIA

Port Washington, New York - January 10, 2003 - Cedar Income Fund, Ltd., a
NASDAQ-listed real estate investment trust (the "Company"), today announced that
a newly-formed partnership consisting of wholly-owned affiliates of the Company
and of Kimco Realty Corporation (NYSE: "KIM") had completed the purchase of
Fairview Plaza in New Cumberland (York County), Pennsylvania, a 70,000 sq. ft.
shopping center anchored by a 59,000 sq. ft. Giant supermarket. Other tenants
include the Pennsylvania Liquor Control Board, Subway and a regional bank.

The purchase price, including closing costs, was approximately $8.5 million.
Financing in the amount of approximately $6 million has been provided by GE
Capital Corp. The parties to the transaction were represented by Cassidy &
Pinkard/iCap and Fameco Real Estate Corp.

The Company also expects to close within the month of January on the purchase of
Newport Plaza, Newport, PA and Halifax Plaza, Halifax, PA, each also anchored by
Giant supermarkets, and also being acquired from affiliates of Caldwell
Development Corp. of Wormleysburg, Pennsylvania, as previously reported.

Cedar Income Fund, Ltd. is a real estate investment trust administered by Cedar
Bay Realty Advisors, Inc., Port Washington, New York with investments primarily
in multi-tenant supermarket-anchored shopping centers in eastern Pennsylvania
and southern New Jersey. Shares of Cedar Income Fund, Ltd. are traded on the
NASDAQ (Small Cap) Stock Market under the symbol "CEDR".