Apartment Land Sale Closes Escrow for $32.3 Million; Sale Establishes a New Record for Valencia Apartment Land Values.

VALENCIA, Calif.--(BUSINESS WIRE)--July 1, 1999--

The Newhall Land and Farming Co. (NYSE:NHL) (PSE:NHL) Thursday announced escrow closed on a 32.8-acre site planned for 828 apartments in South River, adjacent to Valencia Town Center.

The sale represents a significant portion of 1999 second-quarter results, contributing approximately $18.7 million to revenues and approximately $10.9 million to income, or 34 cents per unit, under percentage of completion accounting. Additional revenues of approximately $13.6 million and income of approximately $7.9 million is expected to be recognized during the remainder of the year. The sale was completed with the company receiving 26 percent cash and two notes: one for $14.8 million due 60 days after close of escrow; and one for $9.0 million due Oct. 15, 2000.

Thomas L. Lee, chairman and chief executive officer, said: "The sale is evidence of the strong demand for apartments and the high value of land in Valencia. Valencia's rental rates are the highest in the Santa Clarita Valley, offering premium locations and amenities. Our strong regional economy and job growth are significant contributors to the increase in values we are realizing."

Newhall Land is a developer of new towns and master-planned communities. Its primary activity is the new town of Valencia, Calif. Newhall Ranch, a new town recently approved by Los Angeles County, and Valencia together form one of the nation's most valuable landholdings. They are located on the company's 36,000 acres, 30 miles north of downtown Los Angeles.