155 N. Lake Avenue, Suite 1000
LIMITED PARTNER ALERT!!May 15, 2003TO THE LIMITED PARTNERS OF DSI REALTY INCOME FUND IX
Re: PROTECT YOUR INVESTMENT AND
VOTE AGAINST THE GENERAL PARTNER'S PROPOSAL DO NOT BE FOOLED BY THE GENERAL PARTNER
Dear Limited Partner:
We own over $1 million worth of the limited partnership units in DSI REALTY
INCOME FUND IX (the "Partnership") and its affiliated partnerships, and we are
professional investors. As one of the largest investors in the Partnership, we
are writing to alert you to a proposal that the general partner is making that
is very damaging to all of our limited partnership interests. We recommend
strongly that you VOTE AGAINST THE PROPOSAL by the Partnership's general partner
("general partner"), for the following reasons:
o The general partner's consent solicitation totally fails to explain
the significance of the amendment it is asking you to approve; and
totally fails to disclose its conflicts of interest in making the
o The general partner is trying to give itself a valuable right of first
refusal it would not be entitled to under California securities law
guidelines for new offerings.
o If the general partner's Proposal is approved, the value of our
Partnership units will decrease because they will become harder, or
impossible, to sell to anyone but the general partner.
o If the Proposal is approved, we believe you will no longer be able to
sell your Partnership units on secondary market services like the
American Partnership Board. One such service has advised us it will
cease to effect transfers if the Proposal passes.
o If the Proposal is approved, you will be giving the general partner an
effective monopoly on buying your units if you try to sell them - no
one is likely to bother making an offer to purchase your units if the
general partner has a right of first refusal.
o The Proposal effectively removes all ways for you to get out of this
investment other than selling out to the general partner, probably at
o We believe the general partner is breaching its fiduciary duty by
making this proposal and we are considering a lawsuit against the
general partner to protect the interests of the limited partners.
We recommend strongly that you VOTE AGAINST THE PROPOSAL made by the
general partner. We would be pleased to answer any questions you may have about
our recommendation; please call and ask for Stacey McClain or David Lesser, at
Very truly yours,
MILLENIUM INVESTORS 2, LLC KM INVESTMENTS, LLC
P.S. Do not be tricked by the general partner into voting against your own
Dates Referenced Herein and Documents Incorporated by Reference