Tranche Update on The InterGroup Corporation's Equity Buyback Plan announced on January 14, 1998.

The InterGroup Corporation buys, develops, operates, rehabilitates and disposes real property of various types and descriptions, and to engage in such other business and investment activities as would benefit the Company and its shareholders. The Company operates through three segments: Hotel Operations, Real Estate Operations and Investment Transactions. Hotel Operations is engaged in the operation of The San Francisco Hotel Property (the Hotel). Real Estate Operations is engaged in the operation of its multi-family residential properties. Investment Transactions is engaged in the investment of its cash in marketable securities and other investments. The Hotel is located in the Financial District in San Francisco, one block from the Transamerica Pyramid. The Hotel is a 31-story (including parking garage), steel and concrete, A-frame building. The Hotel has 544 guest rooms and luxury suites situated on 22 floors.