FOR IMMEDIATE RELEASE                                CONTACT: Brenda J. Walker
                                                              Vice President
                                                              Cedar Bay Company
                                                              (516) 883-5577



                TENDER OFFER FOR CEDAR INCOME FUND, LTD. EXTENDED

         PORT WASHINGTON, NEW YORK - February 9, 1998 -- Cedar Bay Company
("Cedar Bay") today announced that the expiration date of its tender offer (the
"Offer") to acquire all, but not less than a majority, of the outstanding shares
of common stock (the "Shares") of Cedar Income Fund, Ltd. for $7.00 per share
(net to the seller in cash) has been extended to 12:00 Midnight, New York City
time, on February 24, 1998, unless the Offer is extended. The Bank of New York
(the depositary bank for the Offer) has reported to the Purchaser that, as of
the close of business on Friday, February 6, 1998, approximately 24.1% of the
Shares had been validly tendered in accordance with the Offer.

         The Offer is being made pursuant and subject to the terms and
conditions set forth in the Offer to Purchase dated January 12, 1998. Cedar Bay
has previously filed with the Securities and Exchange Commission a Tender Offer
Statement on Schedule 14D-1, which contains additional information relating to
the Offer, of which the Offer to Purchase is an exhibit.

         The Information Agent for the Offer is Georgeson & Company Inc.