CORRECTING and REPLACING Inland Real Estate Corporation Reports 6.1% Increase in FFO Per Share for Second Quarter 2007

Please replace the release with the following corrected version due to multiple revisions in the "Consolidated Statements of Operations" table. The corrected release reads: INLAND REAL ESTATE CORPORATION REPORTS 6.1% INCREASE IN FFO PER SHARE FOR SECOND QUARTER 2007 Inland Real Estate Corporation (NYSE:IRC) today announced financial results for the second quarter ended June 30, 2007. Highlights Funds from operations (FFO) of $23.0 million or $0.35 per share (basic and diluted) for the three months ended June 30, 2007, representing increases of 3.4% and 6.1%, respectively Net income of $10.7 million or $0.16 per share (basic and diluted), for the three months ended June 30, 2007 Portfolio was 95.7% leased as of June 30, 2007, up 0.1% from last quarter A total of 81 new and renewal leases were executed for the rental of 281,000 aggregate square feet during the quarter; new lease activity increased 37.7% over expiring rates The Company acquired three assets and expanded its activity in development joint ventures during the quarter Financial Results The Company reported that FFO, a widely accepted measure of performance for real estate investment trusts (REITs), for the three months ended June 30, 2007 was $23.0 million, an increase of 3.4% compared to $22.2 million for the three months ended June 30, 2006. On a per share basis, FFO was $0.35 (basic and diluted) for the three months ended June 30, 2007, an increase of $0.02 or 6.1% over the three months ended June 30, 2006. The increases in FFO and FFO per share are primarily due to increased other property income, which is comprised of lease termination fees, late fees and costs recovered on expenses directly related to specific tenants. The Company reported that net income was $10.7 million for the three-months ended June 30, 2007, a decrease of 12.6% compared to net income of $12.2 million for the three months ended June 30, 2006. On a per share basis, net income was $0.16 per share (basic and diluted) for the three months ended June 30, 2007, a decrease of 11.1% compared to $0.18 per share (basic and diluted) for the three months ended June 30, 2006. Included in net income are gains on sale of property of $1.2 million or $0.02 per share and $2.3 million or $0.03 per share for the three months ended June 30, 2007 and 2006, respectively. The decrease in net income is primarily due to greater gains on property sales during the second quarter last year compared to this year. FFO increased $2.8 million or 6.2% to $47.2 million for the six months ended June 30, 2007. On a per share basis, FFO increased by 9.1% or $0.06 to $0.72 from $0.66 for the year ago period. Net income was $22.4 million for the six months ended June 30, 2007 an increase of $0.3 million or 1.3% compared to net income of $22.1 million for the six months ended June 30, 2006. Net income per share was $0.34 (basic and diluted) for the six months ended June 30, 2007 an increase of $0.01 or 3.0%. Included in net income are gains on sale of property of $1.2 million or $0.02 per share and $2.1 million or $0.03 per share for the six months ended June 30, 2007 and 2006, respectively. The increases in net income and FFO for the six months ended June 30, 2007 over the year ago period are due primarily to the gains on sale of a joint venture interest and a non-operating property recorded in the first quarter 2007. A reconciliation of FFO to net income and FFO per share to net income per share is provided at the end of this news release. "We delivered consistent performance during the quarter and continued to focus on initiatives to drive company growth,” said Robert Parks, President and Chief Executive Officer of Inland Real Estate Corporation. "The 81 new and renewal leases executed, encompassing more than 281,000 square feet of retail space, surpassed both the first quarter and year ago levels. We are also pleased with solid gains in funds from operations, both for the quarter and year-to-date. Finally, our key acquisitions in core Midwest markets and ongoing joint venture initiatives are continuing to build the real estate platform and enhance shareholder value.” Portfolio Performance Total revenues increased 2.3% to $45.5 million for the three months ended June 30, 2007, from $44.5 million for the three months ended June 30, 2006. For the six months ended June 30, 2007 total revenues increased $5.3 million or 6.1% to $93.2 million primarily due to additional property acquisitions. The Company evaluates its overall portfolio by analyzing the operating performance of properties that have been owned and operated for the same three-month period during each year. A total of 123 of the Company’s investment properties satisfied this criterion during these periods and are referred to as "same store” properties. Net operating income decreased $0.3 million or 1.1% to $29.2 million (excluding the impact of straight-line and intangible lease rent) on the same store portfolio for the three months ended June 30, 2007 from $29.5 million one year ago. The quarterly decrease is primarily the result of increased nonrecoverable operating expenses. Same store net operating income increased 0.3% (excluding the impact of straight-line and intangible lease rent) to $58.5 million for the six months ended June 30, 2007, compared to $58.3 million for the six months ended June 30, 2006. This increase is primarily the result of increased other property income. As of June 30, 2007, occupancy for the Company’s same store portfolio was 94.4%, compared to occupancy of 95.3% as of June 30, 2006. EBITDA increased 5.6% to $37.3 million for the three months ended June 30, 2007, compared to $35.3 million for the three months ended June 30, 2006. For the six months ended June 30, 2007, EBITDA increased 9.2% to $75.5 million from $69.1 million last year. A definition and reconciliation of EBITDA to income from continuing operations is provided at the end of this news release. Balance Sheet, Market Value and Liquidity EBITDA coverage of interest expense was 2.6 times for the three months ended June 30, 2007, equal to the first quarter. The Company has provided EBITDA and the related non-GAAP coverage ratios as supplemental disclosure because the Company believes such disclosure provides useful information regarding the Company’s ability to service and incur debt. At June 30, 2007, the Company had an equity market capitalization of $1.1 billion and $1.1 billion of total debt outstanding (including the pro-rata share of debt in unconsolidated joint ventures) for a total market capitalization of $2.2 billion and a debt-to-total market capitalization of 49.5%. Including the convertible notes, approximately 84% of this debt was fixed at a weighted average interest rate of 5.22%. At June 30, 2007, the Company had $85 million outstanding on its unsecured line of credit, which the Company uses for acquisitions, capital improvements, tenant improvements, leasing costs and working capital. Leasing The Company reports that leasing activity remains strong throughout its portfolio. For the three months ended June 30, 2007, the Company executed 30 new and 51 renewal leases, aggregating approximately 281,000 square feet. The 30 new leases comprise approximately 114,000 square feet with an average rental rate of $22.40 per square foot, a 37.7% increase over the average expiring rate. The 51 renewal leases comprise approximately 167,000 square feet with an average rental rate of $15.76 per square foot, a 12.4% increase over the average expiring rate. The Company also signed 4 leases for 26,000 square feet of new, previously un-leased space. As of June 30, 2007, the Company’s portfolio was 95.7% leased, compared to 95.9% leased as of June 30, 2006, and 95.6% leased as of March 31, 2007. Acquisitions During the second quarter, the Company acquired, all for its 1031 Exchange Tenant in Common joint venture with Inland Real Estate Exchange Corporation (IREX), the free-standing, 40,906 square foot Apria Healthcare facility in Schaumburg, Illinois for $8.2 million, the 60,930 square foot Delavan Crossing shopping center in Delavan, Wisconsin for $9.6 million and a free-standing, 61,712 square foot Rainbow Foods store in West St. Paul, Minnesota for $6.9 million. Year-to-date acquisitions for this venture total $99.8 million. Dispositions For the quarter ended June 30, 2007, the Company sold Springhill Fashion Center in West Dundee, Illinois for approximately $9.3 million. The proceeds were directed into a 1031 exchange escrow for future acquisitions. Joint Venture Activity During the quarter, the Company acquired for $11.9 million a development in Ft. Wayne, Indiana with Pine Tree Institutional Realty, LLC for the development of approximately 32 acres of land into 275,000 square feet of multi-tenant retail space plus out-parcels available for sale or ground lease. The Company also acquired a partnership interest in, and provided initial funding for, a development in Lakemoor, Illinois with Tucker Development Corporation for the development of approximately 74 acres of land into 500,000 square feet of multi-tenant retail space plus out-parcels available for sale or ground lease for approximately $27.5 million. Dividends In May, June and July, the Company paid monthly cash dividends to stockholders of $0.08167 per common share. The annual dividend is $0.98 per share. Guidance The Company reiterates original guidance that FFO per common share (basic and diluted) for fiscal year 2007 will be in the range of $1.40 to $1.43. Conference Call/Webcast The Company will host a management conference call to discuss its financial results on Monday, August 6, 2007 at 2:00 p.m. CDT (3:00 p.m. EDT). Hosting the conference call for the Company will be Robert Parks, President and Chief Executive Officer, Mark Zalatoris, Chief Operating Officer, Brett Brown, Chief Financial Officer and Scott Carr, President of Property Management. The conference call can be accessed by dialing 877-407-0782, or 201-689-8567 for international callers. The Company recommends that participants dial in at least ten minutes prior to the scheduled start of the call. The conference call also will be available via live webcast on the Company’s website at www.inlandrealestate.com. The conference call will be recorded and available for replay beginning at 3:00 p.m. CDT (4:00 p.m. EDT) on August 6, 2007, and will be available until 12:00 midnight on Monday, August 13, 2007. Interested parties can access the replay of the conference call by dialing 877-660-6853, or 201-612-7415 for international callers. The replay passcode is Account # 286 and Conference ID # 248560. About Inland Real Estate Corporation Inland Real Estate Corporation is a self-administered and self-managed publicly traded real estate investment trust (REIT) that currently owns interests in 149 neighborhood, community, lifestyle and single-tenant retail centers located primarily in the Midwestern United States, with aggregate leasable space of approximately 14.4 million square feet. Additional information on Inland Real Estate Corporation, including a copy of the Company’s supplemental financial information for the three-months ended June 30, 2007, is available at www.inlandrealestate.com. This press release contains forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe,” "expect,” "anticipate,” "intend,” "estimate,” "may,” "will,” "should” and "could.” The Company intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For a more complete discussion of these risks and uncertainties, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2006. Inland Real Estate Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. INLAND REAL ESTATE CORPORATIONConsolidated Balance SheetsJune 30, 2007 and December 31, 2006(In thousands except per share data)Assets     June 30,2007 (unaudited) December 31,2006 Investment properties: Land $ 342,228 337,896 Construction in progress 809 434 Building and improvements 998,722 926,014   1,341,759 1,264,344 Less accumulated depreciation 234,046 218,808   Net investment properties 1,107,713 1,045,536   Cash and cash equivalents 12,468 27,569 Investment in securities (net of an unrealized loss of $831 and $546 at June 30, 2007 and December 31, 2006, respectively) 15,748 16,777 Restricted cash 9,340 4,044 Accounts and rents receivable (net of provision for doubtful accounts of $1,190 and $1,990 at June 30, 2007 and December 31, 2006, respectively) 40,295 33,668 Mortgages receivable 29,657 27,848 Investment in and advances to unconsolidated joint ventures 104,220 74,890 Deposits and other assets 4,340 3,864 Acquired above market lease intangibles (net of accumulated amortization of $2,634 and $2,450 at June 30, 2007 and December 31, 2006, respectively) 2,776 3,118 Acquired in-place lease intangibles (net of accumulated amortization of $8,178 and $6,534 at June 30, 2007 and December 31, 2006, respectively) 31,508 21,102 Leasing fees (net of accumulated amortization of $1,762 and $1,572 at June 30, 2007 and December 31,2006, respectively) 3,541 3,378 Loan fees (net of accumulated amortization of $4,614 and $4,107 at June 30, 2007 and December 31, 2006, respectively) 6,885 7,367   Total assets $ 1,368,491 1,269,161 INLAND REAL ESTATE CORPORATIONConsolidated Balance Sheets (continued)June 30, 2007 and December 31, 2006(In thousands except per share data)Liabilities and Stockholders' Equity       June 30,2007 (unaudited) December 31,2006 Liabilities: Accounts payable and accrued expenses $ 4,607 5,558 Acquired below market lease intangibles (net of accumulated amortization of $3,893 and $3,535 at June 30, 2007 and December 31, 2006, respectively) 4,023 4,537 Accrued interest 3,949 3,683 Accrued real estate taxes 24,392 24,425 Distributions payable 5,329 5,205 Security and other deposits 2,441 2,466 Mortgages payable 667,619 622,280 Line of credit 85,000 28,000 Convertible notes 180,000 180,000 Prepaid rents and unearned income 2,342 2,596 Other liabilities 14,291   10,363     Total liabilities 993,993   889,113     Commitments and contingencies   Minority interest 2,647   3,065     Stockholders' Equity: Preferred stock, $0.01 par value, 6,000 Shares authorized; none issued and outstanding at June 30, 2007 and December 31, 2006 - - Common stock, $0.01 par value, 500,000 Shares authorized; 65,297 and 65,059 Shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively 652 650 Additional paid-in capital (net of offering costs of $58,816) 609,603 605,133 Accumulated distributions in excess of net income (237,573 ) (228,254 ) Accumulated other comprehensive loss (831 ) (546 )   Total stockholders' equity 371,851   376,983     Total liabilities and stockholders' equity $ 1,368,491   1,269,161   INLAND REAL ESTATE CORPORATIONConsolidated Statements of OperationsFor the three and six months ended June 30, 2007 and 2006 (unaudited)(In thousands except per share data)     ThreemonthsendedJune 30,2007 ThreemonthsendedJune 30,2006 SixmonthsendedJune 30,2007 SixmonthsendedJune 30,2006 Revenues: Rental income $ 33,662 32,284 65,628 63,444 Tenant recoveries 10,747 12,013 25,612 23,977 Other property income 1,139   215   2,005   455     Total revenues 45,548 44,512 93,245 87,876   Expenses: Property operating expenses 5,069 4,903 13,229 10,327 Real estate tax expense 7,928 8,016 16,120 16,231 Depreciation and amortization 11,040 9,963 21,084 20,454 General and administrative expenses 3,041   2,944   6,366   5,076     Total expenses 27,078   25,826   56,799   52,088     Operating income 18,470 18,686 36,446 35,788   Other income 1,329 1,031 2,689 2,160 Fee income from unconsolidated joint ventures 456 430 981 1,089 Gain on sale of investment properties - - - 492 Gain on sale of joint venture interest 307 - 2,228 - Gain on extinguishment of debt 319 - 319 - Interest expense (12,436 ) (11,015 ) (23,919 ) (21,259 ) Minority interest (111 ) (226 ) (219 ) (616 )   Income before equity in earnings of unconsolidated joint ventures, income tax benefit (expense) of taxable REIT subsidiary and discontinued operations 8,334 8,906 18,525 17,654   Income tax benefit (expense) of taxable REIT subsidiary 10 - (424 ) (53 ) Equity in earning of unconsolidated joint ventures 1,010   768   2,944   1,865     Income from continuing operations 9,354 9,674 21,045 19,466   Discontinued operations: Income from discontinued operations (including gain on sale of investment properties of $1,223 and $2,329 for the three months ended June 30, 2007 and 2006, respectively and $1,223 and $2,134 for the six months ended June 30, 2007 and 2006) 1,351   2,568   1,353   2,652     Net income available to common stockholders 10,705 12,242 22,398 22,118   Other comprehensive income: Unrealized gain (loss) on investment securities 127   (212 ) (285 ) (411 )   Comprehensive income $ 10,832   12,030   22,113   21,707   INLAND REAL ESTATE CORPORATIONConsolidated Statements of OperationsFor the three and six months ended June 30, 2007 and 2006 (unaudited)(In thousands except per share data)       ThreemonthsendedJune 30,2007 ThreemonthsendedJune 30,2006 SixmonthsendedJune 30,2007 SixmonthsendedJune 30,2006   Basic and diluted earnings available to common shares per weighted average common share:   Income from continuing operations $ 0.14 0.14 0.32 0.29 Discontinued operations 0.02 0.04 0.02 0.04   Net income available to common stockholders per weighted average common share – basic and diluted $ 0.16 0.18 0.34 0.33   Weighted average number of common shares outstanding – basic 65,178 67,574 65,109 67,527   Weighted average number of common shares outstanding – diluted 65,248 67,643 65,179 67,595 Non-GAAP Financial Measures We consider FFO a widely accepted and appropriate measure of performance for a REIT. FFO provides a supplemental measure to compare our performance and operations to other REITs. Due to certain unique operating characteristics of real estate companies, NAREIT has promulgated a standard known as FFO, which it believes more accurately reflects the operating performance of a REIT such as ours. As defined by NAREIT, FFO means net income computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of operating property, plus depreciation and amortization and after adjustments for unconsolidated partnership and joint ventures in which the REIT holds an interest. We have adopted the NAREIT definition for computing FFO. Management uses the calculation of FFO for several reasons. We use FFO in conjunction with our acquisition policy to determine investment capitalization strategy and we also use FFO to compare our performance to that of other REITs in our peer group. Additionally, FFO is used in certain employment agreements to determine incentives payable by us to certain executives, based on our performance. The calculation of FFO may vary from entity to entity since capitalization and expense policies tend to vary from entity to entity. Items that are capitalized do not impact FFO whereas items that are expensed reduce FFO. Consequently, our presentation of FFO may not be comparable to other similarly titled measures presented by other REITs. FFO does not represent cash flows from operations as defined by U.S. GAAP, it is not indicative of cash available to fund all cash flow needs and liquidity, including our ability to pay distributions and should not be considered as an alternative to net income, as determined in accordance with U.S. GAAP, for purposes of evaluating our operating performance. The following table reflects our FFO for the periods presented, reconciled to net income available to common stockholders for these periods: ThreemonthsendedJune 30,2007 ThreemonthsendedJune 30,2006 SixmonthsendedJune 30,2007 SixmonthsendedJune 30,2006   Net income available to common stockholders (1) $ 10,705 12,242 22,398 22,118 Gain on sale of investment properties, net of minority interest (1,223 ) (2,329 ) (1,223 ) (2,391 ) Gain on non-operating property, net of minority interest (2) - - - 157 Equity in depreciation of unconsolidated joint ventures 2,490 2,392 4,952 4,162 Amortization on in-place lease intangibles 946 765 1,644 1,497 Amortization on leasing commissions 194 177 362 373 Depreciation, net of minority interest 9,845   8,952   19,020   18,485     Funds From Operations $ 22,957   22,199   47,153   44,401     Net income available to common stockholders per weighted average common share – basic and diluted $ 0.16   0.18   0.34   0.33     Funds From Operations, per common share – basic and diluted $ 0.35   0.33   0.72   0.66     Weighted average number of common shares outstanding, basic 65,178   67,574   65,109   67,527     Weighted average number of common shares outstanding, diluted 65,248   67,643   65,179   67,595   (1) Includes gain on sale of joint venture interest of $2,228 in 2007. (2) For 2007, included in net income is gain on sale of non-operating property of $706, net of tax through one of the Company's unconsolidated development joint ventures. EBITDA is defined as earnings (losses) from operations excluding: (1) interest expense; (2) income tax benefit or expenses; (3) depreciation and amortization expense. We believe EBITDA is useful to us and to an investor as a supplemental measure in evaluating our financial performance because it excludes expenses that we believe may not be indicative of our operating performance. By excluding interest expense, EBITDA measures our financial performance regardless of how we finance our operations and capital structure. By excluding depreciation and amortization expense, we believe we can more accurately assess the performance of our portfolio. Because EBITDA is calculated before recurring cash charges such as interest expense and taxes and is not adjusted for capital expenditures or other recurring cash requirements, it does not reflect the amount of capital needed to maintain our properties nor does it reflect trends in interest costs due to changes in interest rates or increases in borrowing. EBITDA should be considered only as a supplement to net earnings and may be calculated differently by other equity REITs. ThreemonthsendedJune 30,2007 ThreemonthsendedJune 30,2006 SixmonthsendedJune 30,2007 SixmonthsendedJune 30,2006   Income from continuing operations $ 9,354 9,674 21,045 19,466 Gain on non-operating property (a) - - - (492 ) Income tax benefit (expense) of taxable REIT subsidiary (10 ) - 424 53 Income from discontinued operations 128 239 130 518 Interest expense 12,436 11,015 23,919 21,259 Interest expense associated with discontinued operations 33 108 131 241 Interest expense associated with unconsolidated joint ventures 1,770 1,743 3,675 3,136 Depreciation and amortization 11,040 9,963 21,084 20,454 Depreciation and amortization associated with discontinued operations 27 147 106 334 Depreciation and amortization associated with unconsolidated joint ventures 2,490   2,392 4,952 4,162     EBITDA $ 37,268   35,281 75,466 69,131     Total Interest Expense $ 14,239   12,866 27,725 24,636     EBITDA: Interest Expense Coverage Ratio 2.6x 2.7x 2.7x 2.8x (a) For 2007, this includes gain on sale of non-operating property through one of the Company's unconsolidated development joint ventures, which is included in equity in earnings from unconsolidated joint ventures on the accompanying consolidated statements of operations.