<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>d06304exv99w1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
<PAGE>
                                                                    EXHIBIT 99.1


                                                                    NEWS RELEASE


AMERICAN REALTY INVESTORS REQUESTS WITHDRAWAL OF REGISTRATION STATEMENT

DALLAS (MAY 23, 2003) -- American Realty Investors, Inc. (NYSE: ARL) announced
today that its board of directors has determined that it is not in the best
interest of American Realty to continue to pursue previously proposed mergers
with Transcontinental Realty Investors, Inc. (NYSE: TCI) and Income Opportunity
Realty Investors, Inc. (AMEX: IOT). As a result of the board's action, American
Realty has requested that the Securities and Exchange Commission consent to the
withdrawal of its registration statement on Form S-4 (No. 333-83292) filed
February 22, 2002, relating the issuance of American Realty preferred stock in
connection with the proposed mergers.

American Realty Investors, Inc. is a real estate investment company that holds a
diverse portfolio of equity real estate located across the U.S., including
office buildings, apartments, hotels, shopping centers and developed and
undeveloped land. Transcontinental Realty Investors, Inc. is a real estate
investment company that invests in real estate similar to ARL's holdings. Income
Opportunity Realty Investors, Inc. is a real estate investment company that
invests in real estate. For more information on each of these companies, visit
their respective websites at www.bcm-inc.com.

This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, which can be identified by
the use of forward-looking terminology, such as "intend," "may," "will,"
"expect," "anticipate," "estimate," or "continue" or the use of the negative
thereof or other variations thereon or comparable terminology. In particular,
any statement expressed or implied, concerning future events is a
forward-looking statement. There can be no assurance that any expectation
expressed or implied herein will prove to be correct, or that any contemplated
event or result will occur as anticipated.



Media Contact:  Investor Relations
                (800) 400-6407 (469) 522-4245
                investor.relations@bcminc.com

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