Dworman's decision to relinquish his role as chairman came the same day AcadiaRealty announced that its Board of Trustees had adopted a host of best practicecorporate governance initiatives, including the naming of Midland DevelopmentGroup chairman and CEO Lee S. Wielansky as lead trustee. Wielansky, a formerpresident and CEO of JDN Development Co., and a current director of AllegiantBancorp Inc., will serve as a liaison between the independent trustees of AcadiaRealty Trust and management.

In announcing his decision to relinquish his position as chairman, Dworman said,"It is with both sadness and joy that I step down as chairman of Acadia RealtyTrust. While I am sad to be taking a less active role in the company, into whichI put substantial resources and energy since the days of RD Capital, I amexcited to fully transition the leadership roles to Ken Bernstein, Lee Wielanskyand the Board of Trustees. I continue to believe in the future success of Acadiaunder the current management team and board, and I am happy to continue to serveas a trustee."

Dworman was CEO of the firm from 1998 through 2000. Kenneth Bernstein is thecurrent president and CEO of Acadia Realty Trust, whichrecently relocated its corporate headquarters from Long Island to White Plains.

The firm reports that it has also adopted a number of new corporate governanceinitiatives including: the creation or reworking of three committees (audit,nominating and corporate governance and compensation) so that they are comprisedsolely of independent trustees; the prohibition of re-pricing of share options;mandating that a majority of the board be independent trustees; requiring thatall trustees own shares in Acadia; the adoption of a Senior Financial OfficerCode of Conduct and a Code of Business Conduct and Ethics as well as thecreation of a "whistleblower" policy."

Acadia CEO Bernstein says of the new governance programs, "By adopting industrybest practices, which includes establishing an independent lead trustee andimplementing all of these important initiatives, we are continuing ourlong-standing commitment to provide complete transparency and fullaccountability to our shareholders."

Jon Grisham, VP of investor relations for Acadia Realty Trust, adds, "These areproactive measures that we think are initiatives that put us at the forefront asit relates to best practices of corporate governance."

Acadia Realty Trust owns 62 shopping center properties that total approximatelyfive million sf of space. The properties are located in the Northeast andMidwest.