BF Enterprises, Inc. Reports Earnings for 2004.

SAN FRANCISCO -- BF Enterprises, Inc. (NASDAQ:BFEN), a San Francisco based real estate holdings and development company, reported that for the three months and the year ended December 31, 2004, net income was $14,000, or $0.00 per diluted share, and $219,000, or $0.06 per diluted share, respectively. Revenues were $1,850,000 for the three-month period and $4,188,000 for the year ended December 31, 2004. For the same periods in 2003, the Company reported net income of $47,000, or $0.01 per diluted share, and $271,000, or $0.07 per diluted share, respectively. Revenues for the fourth quarter and the year ended December 31, 2003 were $860,000 and $3,004,000, respectively.

Net income in the three months and the year ended December 31, 2004 included, before income taxes, a loss of $25,000 and a gain of $428,000, respectively, from sales of property within the Company's Meadow Pointe project near Tampa, Florida and the recognition of a $165,000 installment of a $825,000 deferred gain from the sale of the Company's 21 acres of undeveloped land in Nashville, Tennessee. For the same periods in 2003, net income included gains, before income taxes, of $135,000 and $430,000, respectively, from sales of property within the Company's Meadow Pointe project.

The Company sold 10 and 128 developed lots, respectively, at Meadow Pointe during the three months and year ended December 31, 2004, and 53 and 120 developed lots, respectively, during the same periods of 2003. As of December 31, 2004, there remained to be sold at Meadow Pointe approximately 29 developable acres currently planned for town-home and condominium residential units and three commercial tracts aggregating approximately 24 developable acres.

The Company's reported gains and losses from property sales at Meadow Pointe are based in part upon estimates of the total revenues and costs to be derived by the Company over the life of the project. The Company periodically reviews these estimates and makes adjustments to reflect any revision in estimates. Adjustments resulting from changes in estimates of sales revenue and related timing, interest rates and other factors affecting the project budget were made during both 2004 and 2003. These adjustments, reflecting changes occurring during such periods, resulted in aggregate reductions in revenue and costs that reduced net income before income taxes by $102,000 in 2004 and $22,000 in 2003. As a result of recording changes when identified, gross margins and related margin percentages, derived on a period-to-period basis, may not be directly comparable.

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: Certain information contained in this news release may be deemed forward-looking statements regarding events and financial trends that may affect the Company's future operating results or financial positions. The words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which speak only as of the date made, involve risks and uncertainties, including, but not limited to, competition, general economic conditions, ability to manage and continue growth, the strength of the general economy in the Tampa, Florida area, uncertainties affecting the Tampa real estate market, residential mortgage interest rates, competitive residential and commercial developments in Tampa, inclement weather in Tampa that could delay construction of new homes, weakness in the market for commercial buildings in Tempe, Arizona, the leasing of the Company's Tempe commercial building following the expiration on August 31, 2005 of the extended lease term with JP Morgan Chase Bank (formerly known as "Bank One"), the uncertainty of fluctuating rental rates for commercial office space in Tempe and other factors detailed in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

The Company specifically declines to undertake any obligation to revise publicly any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

The Meadow Pointe project is subject to, and is being developed in accordance with, a Development of Regional Impact Development Order (the "DO") approved by the Tampa Bay Regional Planning Council (the "TBRPC") and Florida Department of Community Affairs (the "FDCA") and issued by the Pasco County Board of County Commissioners ("Pasco County"). The DO included a requirement that the development build-out be completed by December 31, 2003, notwithstanding a DO expiration date of December 31, 2008. During the quarter ended September 30, 2004, the Company was notified by Pasco County that, in light of the expiration of the build-out date, it would no longer approve site plans and issue construction permits covering the Meadow Pointe project ("Pasco County Approvals"). As a result on September 27, 2004, the Company filed a Notice of Proposed Change with Pasco County, TBRPC, and FDCA extending the build-out date for the DO until November 30, 2008 ("Build-out Extension"). On November 8, 2004 the TBRPC, on behalf of itself as reviewer and on behalf of the FDCA, approved the Build-out Extension. In apparent disagreement with the TBRPC, Pasco County notified the Company by letter, dated October 27, 2004, that it deemed the proposed Build-out Extension as a substantial deviation pursuant to Section 380.06 (19) (c), Florida Statutes, and it would, therefore, not approve the Build-out Extension until a public hearing was held on the matter. However, on March 8, 2005, Pasco County approved the Build-Out Extension contained in the Notice of Proposed Change pursuant to the Settlement Agreement, by and between the Company and Pasco County, dated March 8, 2005 (the "Settlement Agreement"). The Settlement Agreement, among other obligations, requires the Company i) to construct a park access road within Meadow Pointe ("Park Access Road"); ii) to purchase from Pasco County approximately 1.1 acres of land for mitigation use (required as a result of the location of the Park Access Road) at a purchase price of approximately $38,500 ("Mitigation Area"); provided, however, if construction of the Park Access Road and Mitigation Area are not completed by January 8, 2006, the Company will pay approximately $165,000 for the Mitigation Area; iii) to secure its obligations and performance under the Settlement Agreement by providing to Pasco County a letter of credit in the amount of $465,000 to secure the construction of the Park Access Road and purchase of the Mitigation Area (the "LOC"), and iv) to dismiss, with prejudice, litigation pending in the Circuit Court of Pasco County involving the denial by the Board of County Commissioners of Pasco County of the Company's special exception use application relating to certain commercial property located in Meadow Pointe. The Company is not yet in the initial phase of construction of the Park Access Road and, accordingly, cannot estimate the total cost with certainty. The Company and Pasco County are currently negotiating the terms of an easement, which is required to be obtained prior to construction of the Park Access Road.

Without the DO in effect during the six-month period ended December 31, 2004, it was difficult to market the Company's remaining three (3) commercial parcels and one (1) multi-family parcel to prospective purchasers who want to obtain certain Pasco County Approvals prior to the purchase of any of the parcels. As a result, expected revenues from real estate sales at Meadow Pointe were delayed and the Company incurred additional costs, such as community development district assessments and property taxes.

BF ENTERPRISES, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
               (in thousands, except per share amounts)

                                     (Unaudited)         (Audited)
                                  Three Months Ended    Year Ended
                                      December 31,      December 31,
                                  ------------------  ----------------
                                     2004     2003      2004     2003
                                  --------- --------  -------- -------
Revenues:
    Real estate sales             $  1,221  $   313   $ 1,967  $   680
    Real estate rental                 523      454     1,884    1,815
    Interest and dividends from
     marketable securities              55       19       147      109
    Interest from mortgage loans        52       66       183      371
    Other                               (1)       8         7       29
                                  --------- --------  -------- -------
                                     1,850      860     4,188    3,004
                                  --------- --------  -------- -------
 Costs and Expenses:
    Cost of real estate sold         1,081      178     1,374      250
    Real estate operations               7       38        26       70
    Depreciation and amortization       24       24        96       96
    General and administrative         689      529     2,307    2,222
                                  --------- --------  -------- -------
                                     1,801      769     3,803    2,638
                                  --------- --------  -------- -------
Income before gains (losses) from
 sales of securities and income
 taxes                                  49       91       385      366
Gains (losses) from sales of
 securities                            (10)       4       (10)      96
                                  --------- --------  -------- -------
Income before income taxes              39       95       375      462
Provision for income taxes              25       48       156      191
                                  --------- --------  -------- -------
Net income                        $     14  $    47   $   219  $   271
                                  ========= ========  ======== =======

Net income per share:
Basic                             $    .00  $   .01   $   .06  $   .08
Diluted                           $    .00  $   .01   $   .06  $   .07
                                  ========= ========  ======== =======
Weighted average shares used in
 computing basic net income per
 share                               3,482    3,506     3,489    3,506
                                  ========= ========  ======== =======
Weighted average shares and share
 equivalents used in computing
 diluted net income per share        3,532    3,604     3,553    3,677
                                  ========= ========  ======== =======