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<SEC-DOCUMENT>0000899681-07-000543.txt : 20070801
<SEC-HEADER>0000899681-07-000543.hdr.sgml : 20070801
<ACCEPTANCE-DATETIME>20070801100218
ACCESSION NUMBER:		0000899681-07-000543
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070912
FILED AS OF DATE:		20070801
DATE AS OF CHANGE:		20070801
EFFECTIVENESS DATE:		20070801

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CEDAR SHOPPING CENTERS INC
		CENTRAL INDEX KEY:			0000761648
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				421241468
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31817
		FILM NUMBER:		071014674

	BUSINESS ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050
		BUSINESS PHONE:		5167676492

	MAIL ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD /MD/
		DATE OF NAME CHANGE:	20001128

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNI INVEST USA LTD
		DATE OF NAME CHANGE:	20000407

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>cedar-def14a_072607.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>DEF 14A</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Stroock Head Minor Center" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3>SECURITIES AND EXCHANGE COMMISSION</FONT></P>

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<P ALIGN=CENTER><FONT SIZE=3>Washington, D.C. 20549</FONT></P>

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<P ALIGN=CENTER><FONT SIZE=3>SCHEDULE 14A INFORMATION</FONT></P>

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<P ALIGN=CENTER><FONT SIZE=3>Proxy Statement Pursuant to Section 14(a) of the Securities<BR>
Exchange Act of 1934<BR>
[(Amendment No. ___)]</FONT></P>

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<P ALIGN=LEFT><FONT SIZE=3>Filed by the Registrant [X]<BR>
Filed by a Party other than the Registrant [   ]</FONT></P>

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<P><FONT SIZE=3>Check the appropriate box: </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]<BR>
[&nbsp;&nbsp;&nbsp;]<BR>
<BR>
[X]<BR>
[&nbsp;&nbsp;&nbsp;]<BR>
[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=2% ALIGN=LEFT>&nbsp;&nbsp;</TD>
<TD WIDTH=93% ALIGN=LEFT>Preliminary Proxy Statement<BR>
Confidential, for Use of the Commission Only<BR>
(as permitted by Rule 14a-6(e)(2))<BR>
Definitive Proxy Statement<BR>
Definitive Additional Materials<BR>
Soliciting Material Pursuant to ss.240.14a-11(c) or ss. 240.14a-12</TD>
</TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER><FONT SIZE=3>CEDAR SHOPPING CENTERS, INC.<BR>
<HR SIZE=1 NOSHADE>
(Name of Registrant as Specified in Its Charter)
<BR>
<BR>
<BR>
<HR SIZE=1 NOSHADE>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></CENTER>

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<P><FONT SIZE=3>Payment of Filing Fee (Check the appropriate box): </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[X]<BR>
[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=95% ALIGN=LEFT>No fee required<BR>
Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;</TD>
<TD WIDTH=5% ALIGN=LEFT>(1)<BR>
(2)<BR>
(3)<BR>
<BR>
<BR>
(4)<BR>
(5)<BR></TD>
<TD WIDTH=90% ALIGN=LEFT>Title of each class of securities to which transaction applies:_________________________<BR>
Aggregate number of securities to which transaction applies:________________________<BR>
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule
0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
_________________________________________________________________________________________<BR>
Proposed maximum aggregate value of transaction:_______________________________<BR>
Total fee paid:___________________________________________________________</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]<BR>
[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=95% ALIGN=LEFT>Fee previously paid with preliminary materials.<BR>
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously.  Identify the previous
filing by registration statement number, or the Form or Schedule and the date of its filing. </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;</TD>
<TD WIDTH=5% ALIGN=LEFT>(1)<BR>
(2)<BR>
(3)<BR>
(4)</TD>
<TD WIDTH=90% ALIGN=LEFT>Amount Previously Paid:_______________________<BR>
Form, Schedule or Registration Statement No.:__________________________<BR>
Filing Party:_________________________________<BR>
Date Filed:__________________________________ </TD>
</TR>
</TABLE>
<BR>
<PAGE>

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<P ALIGN=CENTER><FONT SIZE=3><B>CEDAR SHOPPING CENTERS, INC. </B></FONT></P>

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     <P ALIGN=CENTER>_________________ </P>

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<P ALIGN=CENTER><FONT SIZE=3><B>NOTICE OF SPECIAL MEETING OF STOCKHOLDERS<BR>
TO BE HELD SEPTEMBER 12, 2007 </B></FONT></P>

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     <P ALIGN=CENTER>_________________ </P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that a Special Meeting of Stockholders of Cedar Shopping Centers, Inc.
(the "Company") will be held at the offices of the Company, 44 South Bayles
Avenue, Port Washington, NY 11050, on Wednesday, September 12, 2007 at 9:00 in the morning
for the following purposes:</FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=5%><FONT SIZE=3> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=5%><FONT SIZE=3>1.</FONT></TD>
          <TD WIDTH=90%><P ALIGN=LEFT><FONT SIZE=3>
To authorize and approve an amendment to the Articles of Incorporation to
increase the number of authorized shares of Common Stock of the
Company.</FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=5%><FONT SIZE=3> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=5%><FONT SIZE=3>2. </FONT></TD>
          <TD WIDTH=90%><P ALIGN=LEFT><FONT SIZE=3>
To authorize and approve an amendment to the Articles of Incorporation to
increase the number of authorized shares of Preferred Stock of the Company and
prohibiting use of such preferred stock for anti-takeover purposes. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=5%><FONT SIZE=3> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=5%><FONT SIZE=3>3.</FONT></TD>
          <TD WIDTH=90%><P ALIGN=LEFT><FONT SIZE=3>
          To transact such other business as may properly come before the meeting, or any
          adjournment thereof. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
of record at the close of business on August 1, 2007, shall be entitled to notice of, and
to vote at, the meeting. </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%></TD>
<TD WIDTH=50%>By order of the Board of Directors<BR>
<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leo S. Ullman<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Chairman of the Board</I></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT SIZE=3>Dated:&nbsp;August 6, 2007<BR>
Port Washington, NY</FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IMPORTANT:
PLEASE FILL IN, DATE, SIGN AND MAIL PROMPTLY THE ENCLOSED PROXY IN THE POSTAGE-PAID
ENVELOPE PROVIDED TO ENSURE THAT YOUR SHARES ARE REPRESENTED AT THE MEETING. </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>CEDAR SHOPPING CENTERS, INC.<BR>
44 SOUTH BAYLES AVENUE<BR>
PORT WASHINGTON, NEW YORK 11050 </B></FONT></P>

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     <P ALIGN=CENTER>_________________ </P>

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<P ALIGN=CENTER><FONT SIZE=3><B>PROXY STATEMENT </B></FONT></P>

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     <P ALIGN=CENTER>_________________ </P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
accompanying Proxy is solicited by the Board of Directors of Cedar Shopping Centers, Inc.,
a Maryland corporation (the "Company"), for use at a Special Meeting of
Stockholders (the "Meeting") to be held on September 12, 2007, at 9:00 in the
morning, or any adjournment thereof, at which stockholders of record at the close of
business on August 1, 2007 shall be entitled to vote. The cost of solicitation of proxies
will be borne by the Company. The Company has retained The Altman Group, Inc. to assist in
the solicitation of proxies for a fee not to exceed $25,000, plus out-of-pocket expenses.
The Company also may use the services of its directors, officers, employees and others to
solicit proxies, personally or by telephone; arrangements may also be made with brokerage
houses and other custodians, nominees, fiduciaries and stockholders of record to forward
solicitation material to the beneficial owners of stock held of record by such persons.
The Company may reimburse such solicitors for reasonable out-of-pocket expenses incurred
by them in soliciting, but no compensation will be paid for their services. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
proxy executed and returned by a stockholder may be revoked at any time before it is voted
by timely submission of written notice of revocation or by submission of a duly executed
proxy bearing a later date (in either case directed to the Secretary of the Company) or,
if a stockholder is present at the Meeting, such stockholder may elect to revoke the proxy
and vote the shares personally. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements contained in the Company's Annual Report to Stockholders for the
fiscal year ended December 31, 2006 previously mailed to stockholders are incorporated
herein by reference. It is intended that this Proxy Statement and form of Proxy will first
be sent or given to stockholders on or about August 6, 2007. The Company's website
address is www.cedarshoppingcenters.com. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Reasons for Proposals </FONT></H1>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the annual meeting of stockholders of the Company held June 12, 2007, the Company had
sought approval of a single proposal to amend its Articles of Incorporation to increase
the number of authorized shares of common stock and preferred stock. Although the holders
of a majority of the outstanding shares of common stock voted in favor of such proposal,
the proposal was not approved since it did not receive the requisite two-thirds vote. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company presently has 50 million shares of Common Stock authorized to be issued. Of this
amount, at June 30, 2007, 44,230,866 shares of Common Stock were issued and outstanding,
while an additional 2,534,463 shares were reserved for issuance.  In addition, 3,705,400
shares have been set aside for issuance pursuant to outstanding underwritten offerings of
Common Stock; however, these offerings have been discontinued at this time. As the result,
at the present time the Company does not have available for issuance any shares of Common
Stock. Although the Company presently does not have any plans to issue any Common Stock, the
increase in the authorized shares of Common Stock will provide the Company flexibility for
future transactions, including acquisitions of other businesses, in connection with the
purchase of properties or interests in properties, financing future growth, financing
transactions and other corporate purposes. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
institutional stockholders, while having no objection to the proposed increase of common
stock, voted against the proposal at the annual meeting as it gave the Board of Directors
of the Company complete discretion in setting the terms of the preferred stock, including
the authorization to issue the preferred stock as an anti-takeover defense. It was never
the intent of the Company to use the preferred stock for anti-takeover purposes. As the
result, the Company has agreed with such stockholders to resubmit the proposal for
stockholder approval as two separate proposals, and to include specific language with
respect to the preferred stock so that it cannot be used as an anti-takeover defense. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Voting Requirements </FONT></H1>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 1, 2007, the Company had outstanding and entitled to vote with respect to all
matters to be acted upon at the meeting, 43,617,510 shares of Common Stock. Each holder of
Common Stock is entitled to one vote for each share of stock held by such holder. The
presence of holders representing a majority of all the votes entitled to be cast at the
meeting will constitute a quorum at the meeting. In accordance with Maryland law,
abstentions, but not broker non-votes, are counted for purposes of determining the
presence or absence of a quorum for the transaction of business. Proposals 1 and 2 on the
agenda must receive the affirmative vote of the holders of at least two-thirds of the
outstanding shares of Common Stock entitled to vote thereon at the meeting in order to be
approved. Abstentions and broker non-votes are not counted in determining the votes cast
with respect to any of the matters submitted to a vote of stockholders. Accordingly,
abstentions and broker non-votes will have the same effect as votes against the proposals. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is expected that the following business will be considered at the meeting and action taken
thereon: </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>1. AMENDMENT TO ARTICLES
OF INCORPORATION INCREASING<BR>
AUTHORIZED SHARES OF COMMON STOCK </FONT></H1>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Article FOURTH of its Articles of Incorporation, as amended, the Company is presently
authorized to issue 50 million shares of Common Stock with a par value of $.06 per share
and 5 million shares of Preferred Stock with a par value of $.01 per share. It is proposed
to amend the first paragraph of Article FOURTH of the Articles of Incorporation of the
Company in order to increase the number of shares of Common Stock which the Company is
authorized to issue from 50 million to 150 million shares of Common Stock. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
June 30, 2007, there were 44,230,866 shares of Common Stock issued and outstanding
while an additional 2,534,463 shares were reserved for issuance pursuant to the Company's
stock incentive plans, conversion of limited partnership units and exercise of warrants.
In addition, 3,705,400 shares have been set aside for issuance pursuant to outstanding
underwritten offerings of Common Stock; however, these offerings have been
discontinued at this time.  </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors believes that it is in the best interests of the Company and its
stockholders to increase the number of authorized shares of Common Stock. The increase in
authorized shares will provide flexibility with respect to future transactions, including
acquisitions of other businesses where the Company would have the option to use its Common
Stock (or securities convertible into or exercisable for Common Stock, including limited
partnership units) as consideration (rather than, or in addition to, cash) in connection
with the purchase of properties or interests in properties, financing future growth,
financing transactions and other corporate purposes. The Company does not have any present
intention to issue Common Stock in the immediate future, but it does wish to have the
flexibility to use Common Stock for certain transactions as described above. The
additional shares will enable the Company to avoid the time consuming and costly need to
hold a special meeting of stockholders in every case. The Board of Directors believes
that, in the future, occasions may arise where the time required to obtain stockholder
approval might adversely delay the Company's ability to enter into a desirable
transaction or deny it the flexibility to facilitate the effective use of its securities.
Authorized but unissued shares of Common Stock may be used by the Company from time to
time as appropriate and opportune situations arise. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
of the Company will not have any preemptive rights with respect to the additional shares
being authorized. No further approval by stockholders would be necessary prior to the
issuance of any additional shares of Common Stock, except as may be required by law or
applicable New York Stock Exchange rules. In certain circumstances, generally relating to
the number of shares to be issued and the identity of the recipient, the rules of the New
York Stock Exchange require stockholder authorization in connection with the issuance of
such additional shares. Subject to law and the rules of the New York Stock Exchange, the
Board of Directors has the sole discretion to issue additional shares of Common Stock for
such consideration as may be determined by the Board of Directors. The issuance of any
additional shares of Common Stock may have the effect of diluting the percentage of stock
ownership of the present stockholders of the Company. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
affirmative vote of holders of at least two-thirds of all outstanding shares of Common
Stock of the Company entitled to vote thereon at this meeting is required in order for the
proposed amendment to the Articles of Incorporation to be adopted. The Board of Directors
believes that it would be in the best interests of the Company to amend the first
paragraph of Article FOURTH of the Articles of Incorporation to give effect to this
proposal. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Board of Directors recommends a vote FOR authorization and approval of the amendment to
the Articles of Incorporation.</B> </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>2. AMENDMENT TO ARTICLES
OF INCORPORATION INCREASING<BR>
AUTHORIZED SHARES OF PREFERRED STOCK AND ADDING CERTAIN<BR>
RESTRICTIONS WITH RESPECT THERETO</FONT></H1>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Article FOURTH of its Articles of Incorporation, as amended, the Company is presently
authorized to issue 50 million shares of Common Stock with a par value of $.06 per share
and 5 million shares of Preferred Stock with a par value of $.01 per share. At
June 30, 2007, 3,550,000 shares of Preferred Stock were issued and outstanding. It is proposed
to amend the first paragraph of Article FOURTH of the Articles of Incorporation of the
Company to read as set forth below in order to increase the number of shares of Preferred
Stock which the Company is authorized to issue from 5 million to 12.5 million shares of
Preferred Stock. </FONT></P>

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<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the increase in the authorized number of shares of Preferred Stock, the
Company, in letters and communications with certain institutional stockholders, has agreed
to place limitations in its Articles of Incorporation to restrict the use of Preferred
Stock as an anti-takeover defense. As it was never the intent of the Company to use
Preferred Stock as an anti-takeover measure, it is proposed to amend Article FOURTH of the
Company's Articles of Incorporation to add the following restrictions with respect to
the issuance of its Preferred Stock: </FONT></P>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>1. </FONT></TD>
               <TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               The Preferred Stock will not be used as, or in conjunction with, an
               anti-takeover defense (including potential mergers, in connection with an
               existing or future shareholder rights plan, or by designating terms, or issuing
               shares in transactions for the purposes of aiding management in defending
               against an unsolicited bid for control of the Company) unless approved by the
               shareholders at such time; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>2. </FONT></TD>
               <TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               The Preferred Stock will not be issued to an individual or group for the purpose
               of creating a block of voting power to support management on controversial
               issues without receiving shareholder approval; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>3. </FONT></TD>
               <TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               If the Preferred Stock is to have voting rights, the shares will have the same
               voting rights as the Common Stock (including upon conversion). </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Workstation" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly,
it is proposed to amend the first sentence of Article FOURTH C of the Articles of
Incorporation to read as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para (List) Ind Lev 1" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
               <TD WIDTH=95%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"C.&nbsp;&nbsp;&nbsp;
               <U>Preferred Stock</U>. The Board of Directors of the Corporation by resolution
               is hereby expressly vested with authority to provide for the issuance of the
               shares of Preferred Stock in one or more classes or one or more series, with
               such voting powers, full or limited, or no voting powers, and with such
               designations, preferences and relative, participating, optional and other
               special rights and qualifications, limitations or restrictions thereof, if any,
               as shall be stated and expressed in the resolution or resolutions providing for
               such issue adopted by the Board of Directors; provided, however, (1) the
               preferred stock will not be used as, or in conjunction with, an anti-takeover
               defense (including potential mergers, in connection with an existing or future
               shareholder rights plan, or by designating terms, or issuing shares in
               transactions for the purposes of aiding management in defending against an
               unsolicited bid for control of the Company) unless approved by the shareholders
               at such time; (2) the preferred stock will not be issued to an individual or
               group for the purpose of creating a block of voting power to support management
               on controversial issues without receiving shareholder approval; and (3) if the
               preferred stock is to have voting rights, the shares will have the same voting
               rights as the common stock (including upon conversion)&quot;.</TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Workstation" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors believes that it is in the best interests of the Company and its
stockholders to increase the number of authorized shares of Preferred Stock. The increase
in authorized shares will provide flexibility with respect to future transactions,
including acquisitions of other businesses where the Company would have the option to use
its Preferred Stock as consideration (rather than, or in addition to, cash) in connection
with the purchase of properties or interests in properties, financing future growth,
financing transactions and other corporate purposes. The Company does not have any present
intention to issue Preferred Stock in the future, but it does wish to have the flexibility
to use Preferred Stock for certain transactions as described above. The additional shares
will enable the Company to avoid the time consuming and costly need to hold a special
meeting of stockholders in every case. The Board of Directors believes that, in the
future, occasions may arise where the time required to obtain stockholder approval might
adversely delay the Company's ability to enter into a desirable transaction or deny
it the flexibility to facilitate the effective use of its securities. Authorized but
unissued shares of Preferred Stock may be used by the Company from time to time as
appropriate and opportune situations arise. </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Workstation" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
of the Company will not have any preemptive rights with respect to the additional shares
being authorized. No further approval by stockholders would be necessary prior to the
issuance of any additional shares of Preferred Stock, except as may be required by law or
applicable New York Stock Exchange rules. In certain circumstances, generally relating to
the number of shares to be issued and the identity of the recipient, the rules of the New
York Stock Exchange require stockholder authorization in connection with the issuance of
such additional shares. Subject to law and the rules of the New York Stock Exchange, the
Board of Directors has the sole discretion to issue additional shares of Preferred Stock
on such terms and for such consideration as may be determined by the Board of Directors.
All of the Preferred Stock of the Company shall have such voting rights, designations,
preferences, qualifications, limitations or restrictions thereon as shall be set by the
Board of Directors pursuant to authority vested in it by the Articles of Incorporation of
the Company. The issuance of any additional shares of Preferred Stock may have the effect
of diluting the percentage of stock ownership of the present stockholders of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Workstation" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
affirmative vote of holders of at least two-thirds of all outstanding shares of Common
Stock of the Company entitled to vote thereon at this meeting is required in order for the
proposed amendment to the Articles of Incorporation to be adopted. The Board of Directors
believes that it would be in the best interests of the Company to amend the first
paragraph of Article FOURTH of the Articles of Incorporation to give effect to this
proposal. </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Default" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Board of Directors recommends a vote FOR authorization and approval of the amendment to
the Articles of Incorporation.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Security Ownership of
Certain Beneficial Owners and Management </FONT></H1>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Default" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a schedule of all persons who, to the knowledge of the Company, beneficially
owned more than 5% of the outstanding common stock of the Company as of February 15, 2007: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=70%>
<TR VALIGN=Bottom>
     <TH ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name and Address</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Number of Shares<BR>
Beneficially Owned</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Percent<BR>
of Stock</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cohen &amp; Steers Capital Management, Inc.</FONT></TD>
     <TD WIDTH=26% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,632,800&nbsp;</FONT></TD>
     <TD WIDTH=14% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>12.8%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>280 Park Avenue</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>New York, NY 10017</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>FMR Corp.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,218,336&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;9.6%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>82 Devonshire Street</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Boston, MA 02109</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Snyder Capital Management, L.P. and</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,947,520&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;6.7%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Snyder Capital Management, Inc. (1)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>One Market Plaza, Suite 1200</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, CA 94105</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>The Vanguard Group, Inc.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,414,378&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;5.5%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>100 Vanguard Blvd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Malverne, PA 19355</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Cutoff Rule" FSL="Default" -->
<P>_________________ </P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(1) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          According to a Schedule 13G, these shares are owned under shared dispositive
          power. Moreover, the direct parent company of Snyder Capital Management, L.P.
          ("SCMLP"), and Snyder Capital Management, Inc. ("SCMI"), is
          IXIS Asset Management North America, L.P. ("IXIS"), which is
          ultimately owned by three large affiliated French financial services firms. SCMI
          and IXIS operate under an understanding that all investment and voting decisions
          regarding managed accounts are to be made by SCMI and SCMLP and not by IXIS or
          any entity controlling it. Accordingly, SCMI and SCMLP do not consider IXIS
          Asset Management North America or any entity controlling it to have any direct
          or indirect control over the securities held in managed accounts. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Default" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information concerning the security ownership of directors and
executive officers as of June 30, 2007: </FONT></P>

<PRE>
<FONT SIZE=1>
                                                                                            Percent
                                                             Number of Shares                 of
Name                                                        Beneficially Owned(1)           Stock(2)
- ----                                                        ---------------------           --------
Leo S. Ullman (3)                                                  696,905                      1.6%

James J. Burns (4)                                                  16,123                       *

Richard Homburg (5)                                                 58,800                       *

Paul G. Kirk, Jr.                                                    7,200                       *

Everett B. Miller III (4)                                           16,156                       *

Brenda J. Walker (6)                                               151,873                       *

Roger M. Widmann (7)                                                 9,800                       *

Lawrence E. Kreider, Jr.                                            39,164                       *

Thomas B. Richey                                                   105,674                       *

Nancy H. Mozzachio                                                  22,233                       *

Directors and executive officers as a group (11 persons) (8)     1,170,383                      3.0%
</FONT>
</PRE>


<!-- MARKER FORMAT-SHEET="Cutoff Rule" FSL="Default" -->
<P>_________________ </P>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT SIZE=3>* Less than 1%</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(1) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Beneficial ownership is determined in accordance with the rules of the
          Securities and Exchange Commission and generally includes voting or investment
          power with respect to securities. Shares of common stock subject to options
          currently exercisable or exercisable within 60 days of the date hereof, are
          deemed outstanding for computing the percentage of the person holding such
          options but are not deemed outstanding for computing the percentage of any other
          person. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(2) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Percentage amount assumes the exercise by such persons of all options to acquire
          shares of common stock or exchange of limited partnership interests in Cedar
          Shopping Centers Partnership, L.P. for shares of common stock and no exercise or
          exchange by any other person. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(3) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Includes options to purchase 3,333 shares of common stock and 296,670 limited
          partnership interests in Cedar Shopping Centers Partnership, L.P. exchangeable
          for an equal number of shares of common stock of the Company ("OP
          Units"). 113,245 of the shares of common stock owned by Mr. Ullman are
          pledged to a bank to secure a loan made by such bank to Mr. Ullman. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(4) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Includes options to purchase 3,333 shares of common stock. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(5) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Includes 50,000 shares owned by subsidiaries of Homburg Invest, Inc., a company
          controlled by Richard Homburg for the benefit of his family. Mr. Homburg may be
          deemed to be the beneficial owner of all shares of common stock owned by Homburg
          Invest, Inc. He disclaims beneficial ownership of these shares. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(6) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Includes options to purchase 3,333 shares of common stock and 69,333 OP Units. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(7) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Does not include 1,000 shares of common stock owned by Mr. Widmann's wife
          as to which he disclaims beneficial ownership. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>(8) </FONT></TD>
          <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          Includes 13,332 shares of common stock issuable on exercise of options and
          366,003 OP Units. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<P ALIGN=CENTER><FONT SIZE=3><B>3.  OTHER MATTERS</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Workstation" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposals
of stockholders intended to be presented at the Company's 2008 Annual Meeting of
Stockholders must be received by the Company on or prior to December 29, 2007 to be
eligible for inclusion in the Company's Proxy Statement and form of Proxy to be used
in connection with such meeting. Any notice of stockholder proposals received after this
date is considered untimely. A representative of Ernst &amp; Young LLP, the
independent registered public accounting firm for the Company, is expected to
be present at the meeting with the opportunity to make a statement if such
representative so desires and to respond to appropriate questions. At
the date of this Proxy Statement, the only business which the Board of Directors intends
to present or knows that others will present at the Meeting is that hereinabove set forth.
If any other matter or matters are properly brought before the meeting, or any adjournment
thereof, it is the intention of the persons named in the accompanying form of Proxy to
vote the Proxy on such matters in accordance with their judgment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Workstation" -->
<P ALIGN=LEFT><FONT SIZE=3>Leo S. Ullman<BR>
<I>Chairman of the Board</I><BR>
Dated: August 6, 2007</FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>CEDAR SHOPPING CENTERS, INC. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>SPECIAL MEETING OF STOCKHOLDERS &#150; SEPTEMBER 12, 2007<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Large Indent" FSL="Default" -->
<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned stockholder of Cedar Shopping Centers, Inc., a Maryland corporation, hereby
appoints Leo S. Ullman and Brenda J. Walker and each of them the proxies of the
undersigned with full power of substitution to vote at a Special Meeting of Stockholders
of the Company to be held at 9:00 AM on September 12, 2007, and at any adjournment or
adjournments thereof (the "Meeting"), with all the power which the undersigned
would have if personally present, hereby revoking any proxy heretofore given. The
undersigned hereby acknowledges receipt of the proxy statement for the Meeting and
instructs the proxies to vote as directed on the reverse side.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>(Continued and
to be signed on the reverse side)</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>SPECIAL MEETING OF STOCKHOLDERS OF </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>CEDAR SHOPPING CENTERS, INC. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>SEPTEMBER 12, 2007 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Head Major Center Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT SIZE=3><B>PLEASE DATE, SIGN AND MAIL<BR>
YOUR PROXY CARD IN THE<BR>
ENVELOPE PROVIDED AS SOON AS POSSIBLE. </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>- Please detach along perforated line and mail in the envelope provided. -</FONT></P>
<HR SIZE=1>
<HR SIZE=1>

<P ALIGN=CENTER><FONT SIZE=3>THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR"
PROPOSALS 1 AND 2.<BR>
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.<BR>
PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X]</FONT></P>

<HR SIZE=1 NOSHADE>
<BR>
<BR>
<HR SIZE=1 NOSHADE>
<P><FONT SIZE=3>To change the address on your account, please check the box at
right and indicate your new address in the address space above. Please note that
changes to the registered name(s) on the account may not be submitted via this
method. [ ] </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>1.</TD>
<TD WIDTH=50% ALIGN=LEFT>
To amend the Articles of Incorporation to increase authorized common stock</TD>
<TD WIDTH=45%>
FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGAINST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ABSTAIN<BR>
[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp;&nbsp;]
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>2.</TD>
<TD WIDTH=50% ALIGN=LEFT>
To amend the Articles of Incorporation to increase authorized preferred stock
and prohibit use of preferred stock for anti-takeover purposes</TD>
<TD WIDTH=45%>
[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp;&nbsp;]
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>3.</TD>
<TD WIDTH=50% ALIGN=LEFT>With discretionary authority upon such other matters as may properly come before
the Meeting</TD>
<TD WIDTH=45%>
</TD>
</TR>
</TABLE>
<BR>

<P><FONT SIZE=3>THIS PROXY, WHEN PROPERLY SIGNED, WILL BE VOTED IN THE MANNER DIRECTED, IF NO
SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED FOR PROPOSALS 1 AND 2, AND IN
THE DISCRETION OF THE PROXY HOLDERS AS TO ANY OTHER MATTERS WHICH MAY PROPERLY
COME BEFORE THE MEETING.</FONT></P>

<P><FONT SIZE=3>PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>MARK HERE IF YOU PLAN TO ATTEND THE MEETING [&nbsp;&nbsp; ]</FONT></P>
<HR SIZE=1 NOSHADE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>Signature of Stockholder <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
<BR>
Signature of Stockholder <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
<TD WIDTH=50%>
Date:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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<P><FONT SIZE=3>Note: Please sign exactly as your name or names appear on this Proxy. When
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