As we previously announced, Inland Retail and DDR entered into a definitive merger agreement on October 20, 2006.  Under the agreement, DDR will acquire the outstanding shares of Inland Retail for $14.00 per share, subject to certain conditions.

Subject to shareholder approval and other closing conditions, we anticipate the completion of this transaction to occur in the first quarter of 2007.  In order to assist in the closing process and minimize any delays in the potential final payment to shareholders, we strongly urge shareholders to return their outstanding Inland Retail certificates so that they may be converted to “book-entry”.  A book-entry transaction signifies securities that are not represented by certificates of ownership, but are recorded directly on the company’s formal shareholder records.  This method eliminates the requirement of delivering a stock certificate at the time of any sale or transfer of ownership.

Returning certificate(s) does not impact a shareholder’s investment or distributions.  Shareholders will continue to own the same number of shares. Their ownership will simply be converted to book-entry.   A confirmation will be sent to shareholders upon receipt of their certificate(s) and conversion to book-entry.  As the merger has not yet occurred, surrendering certificates at this time will not result in any payments.  The surrender of stock certificates will assist in making the final payout process more efficient and could prevent delays in payment.  The final payment will not occur until after the closing of this merger.

We sent the attached letter only to shareholders with outstanding certificates.  Registered representatives received a hard copy of the letter with a report detailing their Inland Retail shareholders with outstanding certificates.  There is no need to attend to custodial accounts such as IRA and SEP accounts.  We will work directly with the custodians to retrieve such certificates.

If a shareholder has lost a certificate, an Affidavit of Lost Certificate must be completed. A notarized signature is required.  SHOULD SHAREHOLDERS WAIT UNTIL THE TIME OF THE MERGER TO REPORT A CERTIFICATE AS LOST, A FEE MAY BE IMPOSED.  Along with the letter, shareholders will receive an Affidavit of Lost Certificate and a postage-paid return envelope.

Certificates and/or Affidavit of Lost Certificate must be received by MONDAY, FEBRUARY 19, 2007 at the following address:

Investor Relations
Inland Retail Real Estate Trust, Inc.
2901 Butterfield Road
Oak Brook, IL 60523