Barnwell Industries Inc.

Mercury Real Estate Advisors LLC, an affiliate of Mercury Partners LLC, Greenwich, Conn., has urged Barnwell Industries Inc., Honolulu, (NYSE: BRN) to retain an investment bank to evaluate strategic alternatives, including a sale of the energy division and a share buyback program. Mercury is the largest shareholder of Barnwell Industries and reports, "Although there remains substantial unrealized value in these assets, we believe the company's current corporate structure, egregious executive compensation and disparate business divisions are fundamentally flawed. We further believe that strategic alternatives, including the sale of its energy division, must be evaluated to fully maximize the value of the company for all shareholders. Finally, a substantial share buyback program should be put into effect immediately." Barnwell Industries and its subsidiaries have assets primarily in Canada and have 188 gas wells. It owns and operates four rotary drill rigs, and pump installation and service equipment, and leased one rotary drill/workover rig to an oil company. Proved reserves are 1.1 million barrels of oil and 21.8 billion cubic feet of gas.