This letter provides information relating to the amount and character of the income, gain, loss, deductions and basis adjustment ("Tax Items") of the City Investing Company Liquidating Trust ("Trust") for 2002. You should use this information in preparing your 2002 U.S. Federal income tax return.

If you (i) acquired Trust Units ("Units") upon liquidation of City Investing Company, (ii) reported long-term capital gain or loss upon the liquidation, and (iii) did not dispose of any Units in 2002, you can calculate on the Schedule your share of the Trust Tax Items by multiplying the Amount per Unit [Column IA] of each Tax Item by the Number of Units you held [Column IB] and entering the product under the Taxable Amount [Column IC].

If you (i) disposed of Units in 2002, or (ii) acquired your Units other than upon the liquidation of City Investing Company, or (iii) did not report long-term capital gain or loss upon the liquidation, you will probably have different income tax consequences that cannot readily be calculated by the Trust. For administrative convenience, you may calculate your share of the Trust Tax Items by (i) multiplying the Amount per Unit [Column A] of each Tax Item by the Number of Units you held [Column B] on the first day of each month applicable to your holding period, (ii) entering the product under the Taxable Amount [Column C] and (iii) entering the sum of the amounts in Columns IIC through XIIIC, if any, in Column XIV.

Individual taxpayers may report on Form 1040 the amounts of Tax Items computed for Federal income tax purposes as follows:

	Tax Item 1c.		Interest Income--line 1, Schedule B
	Tax Item 2.		Dividend Income--line 5, Schedule B
	Tax Item 3.		Net Long-Term Capital Gain/(Loss)--line 12, Schedule D, Column (f)
	Tax Item 4.		Gain on Sale of Real Estate - With Installment Sale Method
			4a.   Payments Received During Year - line 21, Form 6252
			4b.   Installment sale income - line 24, Form 6252
	Tax Item 5.		Miscellaneous Income--line 21
	Tax Item 6.		Trust Expenses--line 22, Schedule A, (if you itemize deductions)
	Tax Item 7.		Adjustment to Basis--With Installment Sale Method--for information purposes
	Tax Item 8.		Adjustment to Basis--Without Installment Sale Method--for information purposes

THIS LETTER IS NOT INTENDED TO PROVIDE INCOME TAX ADVICE RELATING TO THE ACQUISITION, HOLDING AND DISPOSITION OF UNITS, YOU ARE STRONGLY ENCOURAGED TO DISCUSS THE INCOME TAX CONSEQUENCES OF ACQUIRING, HOLDING AND DISPOSING OF UNITS WITH YOUR TAX ADVISOR.

For all information about unit holdings:

    telephone:           1-800-851-9677
    write to:            Mellon Investor Services, P.O. Box 3315, South Hackensack, NJ 07606
    web site:            http://www.melloninvestor.com

For current financial (10-K, 8-K, & 10-Q) and tax information, please go to the Trust's web site:

                         http://www.cnvlz.com

For all other information please communicate with us at:

    write to:            CITY INVESTING COMPANY LIQUIDATING TRUST

                         853 Broadway, Suite 1607, New York, NY 10003-4703

    telephone:           212-473-1918    fax: 212-473-3927    e-mail: mantell@cnvlz.com

City Investing Company Liquidating Trust units trade on the Nasdaq Stock Market and appear daily in the list entitled Small Capitalization Issues under the symbol of CITYINVLQ or CNVLZ.

-A-

	II
	January
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.000000	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.000000	x		=
2. Dividend Income:	0.000007	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.000421)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.001201	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	(0.001615)	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	(0.001615)	x		=

	III
	February
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.008037	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.008037	x		=
2. Dividend Income:	0.000002	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.003374)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.001048	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.003617	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.003617	x		=

	IV
	March
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.012240	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.012240	x		=
2. Dividend Income:	0.000001	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.006171)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.001506	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.004564	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.004564	x		=

	V
	April
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.000134	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.000134	x		=
2. Dividend Income:	0.000008	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.003931)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000718	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	(0.004507)	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	(0.004507)	x		=

	VI
	May
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.010401	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.010401	x		=
2. Dividend Income:	0.000001	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.002287)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000432	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.007683	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.007683	x		=

	VII
	June
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.000000	x		=
b) All Other	0.006109	x		=
c) Total Interest Income (1a+1b)	0.006109	x		=
2. Dividend Income:	0.000001	x		=
3. Net Long-Term Capital Gain/(Loss):	0.005445	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.018897	x		=
b) Installment Sale Income	0.006017	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000756	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.016816	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.010799	x		=

	VIII
	July
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.006219	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.006219	x		=
2. Dividend Income:	0.000004	x		=
3. Net Long-Term Capital Gain/(Loss):	0.000000	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000608	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.005615	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.005615	x		=

	IX
	August
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.007906	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.007906	x		=
2. Dividend Income:	0.000003	x		=
3. Net Long-Term Capital Gain/(Loss):	0.000000	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000380	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	0.007529	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	0.007529	x		=

	X
	September
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.007062	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.007062	x		=
2. Dividend Income:	0.000003	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.007901)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000383	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	(0.001219)	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	(0.001219)	x		=

	XI
	October
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.000000	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.000000	x		=
2. Dividend Income:	0.000006	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.000089)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.002478	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	(0.002561)	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	(0.002561)	x		=

	XII
	November
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.000000	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.000000	x		=
2. Dividend Income:	0.000002	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.000732)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method
a) Payments Received During Year	0.000000	x		=
b) Installment Sale Income	0.000000	x		=
5. Miscellaneous Income:	0.000000	x		=
6. Trust Expenses:	0.000521	x		=
7. Adjustment to Basis - With Installment Sale Method
Tax Items (1c+2+3+4b+5-6)	(0.001251)	x		=
8. Adjustment to Basis - Without Installment Sale Method
Tax Items (1c+2+3+5-6)	(0.001251)	x		=

	XIII
	December
	A	x	B	=	C
	Amount
	per		No. of		Taxable
	Unit	x	Units	=	Amount o
TAX ITEM: *
1. Interest Income:
a) U.S. Gov't Obligations	0.011300	x		=
b) All Other	0.000000	x		=
c) Total Interest Income (1a+1b)	0.011300	x		=
2. Dividend Income:	0.000001	x		=
3. Net Long-Term Capital Gain/(Loss):	(0.000990)	x		=
4. Gain on Sale of Real Estate - With Installment Sale Method