EXHIBIT 99.1

DiVall Insured Income Properties 2, L.P.

QUARTERLY NEWS

February 15, 2011

FOURTH QUARTER OF 2010 DISTRIBUTION…

The Partnership is distributing $280,000 for the Fourth Quarter of 2010, which is $6.05 per unit. This is $50,000 ($1.08 per unit) higher than planned and is due primarily to the December sale of the vacant Park Forest, IL property; unplanned Denny’s rents; and a reduction in the Partnership’s property insurance premiums which were due in the Fourth Quarter.

ADDITIONAL FINANCIAL INFORMATION CAN BE ACCESSED…

For further Quarterly 2010 unaudited financial information, see the Partnership’s interim financial reports filed on Form 10-Q. A copy of the First, Second and Third Quarter 2010 10-Q’s and other public reports can be viewed and printed free of charge at the Partnership’s website at www.divallproperties.com or at the SEC’s website at www.sec.gov. The Partnership’s 2010 Annual Report on Form 10-K is anticipated to be filed with the SEC by March 31, 2010, at which time the report can also be accessed via the websites.

DISTRIBUTION HIGHLIGHTS

PARTNERSHIP OUTLOOK for 2011…

As of December 31, 2010, all 14 Partnership properties were leased and all tenants were continuing to abide by the terms of their leases. Two of the leases are set to expire during the first half of 2011, and Management projects that both of these leases will be extended. Management plans to continue its objective to preserve capital and sustain property values, while selectively working to dispose of weaker investment properties, such as the vacant Park Forest, IL property which was sold in December of 2010 (see Property Sold and Other Property Highlights on page 2 for further information).

Based on current projections, the Partnership anticipates distributing $1 million ($21.61 per unit) from adjusted cash operating flows and “net” cash activity from investing and financing activities for the four quarters of 2011.

FORWARD LOOKING STATEMENTS

Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. Investors are cautioned not to place undue reliance on forward-looking statements, which reflect the Partnership’s management’s view only as of February 1, 2011, the date this newsletter was sent for printing and mail assembly. The Partnership undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ materially from any forward-looking statements made in this newsletter include changes in general economic conditions, changes in real estate conditions and markets, unanticipated property sales, inability of current tenants to meet financial obligations, inability to obtain new tenants upon the expiration of existing leases, changes in annual carrying costs of vacant property, and the potential need to fund tenant improvements or other capital expenditures out of operating cash flow.

SEE INSIDE

PROPERTY SOLD HIGHLIGHT

OTHER PROPERTY HIGHLIGHTS

QUESTIONS & ANSWERS

Your newsletter for the First Quarter of 2011 is scheduled to be mailed on May 13, 2011.

Please visit the website at www.divallproperties.com.

Management’s has estimated the Net Unit Value of each interest of the Partnership to approximate $320, as noted in the enclosed letter to investors. Please note that the estimated year-end NUV should be adjusted (reduced) for any subsequent property sale(s) during the following year. As with any valuation methodology, the General Partner’s methodology is based upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions and estimates could derive a different estimated NUV. Accordingly, with respect to the estimated NUV, the Partnership can give no assurance that:

Comparative transfer price range information is available upon request to our Investor Relations Department. The Partnership, however, makes no representation that these prices are guaranteed, fair or reasonable. Secondary market lists can also be obtained upon request to DiVall Investor Relations.

According to IRS regulations, Management is not required to mail K-1’s until April 15^th, 2011. The 2010 K-1’s are scheduled to be mailed in March of 2011.

Please visit the Investors Relation page at www.divallproperties.com or the SEC website at www.sec.gov to print a free copy of the report(s) or contact Investor Relations.

Please e-mail your specific question to Diane Conley at dconley@theprovogroup.com by Monday, April 1, 2011 or visit the Investor Relations page at www.divallproperties.com.

Please mail or fax to DiVall Investor Relations a signed letter stating your new address and telephone number. Updates cannot be accepted over the telephone or via voicemail messages.

You can reach DiVall Investor Relations at the address and/or number(s) listed below.

CONTACT INFORMATION

DIVALL INSURED INCOME PROPERTIES 2 L.P.

ADJUSTED CONDENSED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 and 2008

(Unaudited)

Non-GAAP Financial Disclosure

Adjusted cash flow provided by operating activities is a non-GAAP financial measure that represents cash flow provided by operating activities on a GAAP basis adjusted for certain timing differences and cash flow advances (deferrals) as described above. Management believes that adjusted cash flow from operating activities is a useful supplemental measure for assessing the cash flow generated from the Partnership’s period and is used in evaluating quarterly cash distributions to limited partners. Adjusted cash flow provided by operating activities should not be considered as an alternative for cash flow provided by operating activities computed on a GAAP basis as a measure of our liquidity.

We believe that adjusted cash flow provided by operating activities is a useful supplemental measure for assessing the cash flow generated from our core operations as it gives investors important information about our liquidity that is not provided within cash flow provided by operating activities as defined by GAAP, and we use this measure when evaluating distributions to Limited Partners.