The Karabots Foundation Announces Rule 10b5-1 Plan To Sell a Portion of Its Holdings in AMREP Corporation (NYSE: AXR) To Comply with Tax Law Requirements, Which Will Permit It To Avoid an Impending Excess Business Holdings Tax Liability

The Karabots Foundation announced today that to comply with Internal Revenue Code requirements limiting the ownership interests of private foundations in businesses, and to allow it to avoid an impending excess business holdings tax liability, the Foundation has put in place a share trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to sell up to 447,165 of the 580,165 shares of AMREP Corporation (NYSE: AXR) common stock that the Foundation owns. Rule 10b5-1 is designed to allow public company insiders to adopt written, pre-arranged, share trading plans when they do not have material, non-public information in their possession.

Of the 580,165 shares owned by the Foundation, which represents approximately 8.7% of AMREP's outstanding common stock, 447,165 shares are an excess business holding within the meaning of Section 4943 of the Internal Revenue Code. That Code section imposes prohibitively expensive excise taxes on a private foundation, such as The Karabots Foundation, which fails to dispose of any such excess business holdings within a specified period. The Foundation is selling the 447,165 shares solely to comply with Section 4943 of the Code and to avoid the liability for those excise taxes and is retaining those shares not required to be sold to meet these objectives.

The Karabots Foundation is a private, non-profit, charitable corporation that acquired its AMREP shares in 2001 and 2002 through gifts from Nicholas G. Karabots and a company he owns. Mr. Karabots is one of the founders of the Foundation and its President, Foundation Manager and one of its two directors. He is also a member and Vice-Chairman of the AMREP Board of Directors and of its Executive Committee and a significant AMREP shareholder.