BF Enterprises Reports Increased Third Quarter Results.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 20, 1997--BF Enterprises Inc. (NASDAQ/NMS:BFEN) reported that for the three months and nine months ended Sept. 30, 1997, net income was $783,000, or $.19 per share, and $2,344,000, or $.57 per share, respectively.

Revenues were $1,290,000 for the three-month period and $4,225,000 for the nine-month period. For the same periods in 1996, net income was $555,000, or $.14 per share, and $1,675,000, or $.42 per share. Revenues in the third quarter and first nine months of 1996 were $1,109,000 and $3,420,000.

The company reported that the increase in revenues and income in the 1997 third quarter and first nine months was due primarily to results of operations at its Meadow Pointe project in suburban Tampa, Fla.

BF Enterprises is a San Francisco-based real estate holdings and development company. -0-

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

                          Three Months Ended    Nine Months Ended
                               Sept. 30,            Sept. 30,
                          1997          1996    1997         1996
Revenues:

 Real estate sales        $  749     $  581     $2,619     $1,838
 Real estate rental
  income                     461        457      1,381      1,365
 Interest and dividends       78         69        215        205
 Other                         2          2         10         12
                          ------     ------     ------     ------
                           1,290      1,109      4,225      3,420

Costs and Expenses:

 Cost of real estate sold     86        239        538        639
 Depreciation and
  amortization                23         24         72         74
Interest on subordinated
  debentures                  14         14         42         44
 General and
  administrative             384        371      1,229      1,082
                          ------     ------     ------     ------
                             507        648      1,881      1,839

Gross profit                 783        461      2,344      1,581
Gains from securities         --         94         --         94
Income before
 income taxes                783        555      2,344      1,675
Provision for
 income taxes                 --         --         --         --

  Net income              $  783     $  555     $2,344     $1,675

  Net income per share    $ 0.19     $ 0.14     $ 0.57     $ 0.42

-0-

CONTACT: BF Enterprises Inc.

John M. Price, 415/989-6580