BF Enterprises Reports Record Earnings for 1997.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 26, 1998--BF Enterprises Inc. (NASDAQ/NMS:BFEN) reported that for the fourth quarter and the year ended Dec. 31, 1997, net income was $735,000, or $.18 per share, and $3,079,000, or $.75 per share.

Revenues were $1,381,000 for the fourth quarter and $5,606,000 for the entire year.

For the same periods in 1996, net income was $462,000, or $.11 per share, and $2,137,000, or $.53 per share. Revenues in the fourth quarter and the year 1996 were $1,139,000 and $4,559,000.

The company reported that the substantial increase in net income in 1997 was due primarily to significant increases in revenues and profits from sales of property within the company's Meadow Pointe project, near Tampa, Fla.

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

                 BF Enterprises Inc. and Subsidiaries
                   Consolidate Statements of Income
               (in thousands, except per share amounts)

                               Three Months Ended      Year Ended
                                    Dec. 31,             Dec. 31,
                                1997       1996      1997      1996

Revenues:
Real estate sales            $   837    $   606   $ 3,456    $ 2,444
Real estate rental income        460        457     1,841      1,822
Interest and dividends            72         73       287        278
Other                             12          3        22         15

                               1,381      1,139     5,606      4,559

Costs and Expenses:
Cost of real estate sold         116        230       654        869
Real estate operating             13         28        52         74
Depreciation and
         amortization             24         24        96         98
Interest on subordinated
         debentures               13         15        55         59
General and administrative       579        380     1,769      1,416

                                 745        677     2,626      2,516

Gross profit                     636        462     2,980      2,043
Gains from securities             --         --        --         94
Income before income taxes       636        462     2,980      2,137
Benefit for income taxes         (99)        --       (99)        --
Net income                   $   735    $   462   $ 3,079    $ 2,137
Net income per share:
Basic                        $   .20    $   .12   $   .83    $   .57
Diluted                      $   .18    $   .11   $   .75    $   .53

CONTACT: BF Enterprises Inc.

Douglas Post (Vice President), 415/989-6580