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CALPROP REPORTS IMPROVED THIRD QUARTER RESULTS, ANNOUNCES KAUFMAN AND BROAD EXERCISED OPTION ON 49 LOTS IN OCTOBER

 CALPROP REPORTS IMPROVED THIRD QUARTER RESULTS, ANNOUNCES
 KAUFMAN AND BROAD EXERCISED OPTION ON 49 LOTS IN OCTOBER
 LOS ANGELES, Calif., Nov. 2 /PRNewswire/ -- Calprop Corp. (AMEX: CPP), a California home builder, today reported a net loss of $409,837, or 8 cents per share, for the quarter ended Sept. 30, 1992, compared to a net loss of $1.4 million, or 31 cents per share, for the 1991 quarter. The company reported revenues of $3.8 million for the third quarter, compared to revenues of $7.5 million for the year ago period. Victor Zaccaglin, chairman and chief executive officer, said, "The third quarter reflects the substantial progress we have made in lowering our break-even point."
 Sales of 16 units in the third quarter (10 single-family homes and 6 town homes) compared with sales of 39 units (26 single-family homes, 3 paired homes, and 7 lots) in the 1991 period. Thirteen of the 16 units sold were in Northern California developments.
 During the quarter, gross profit on development operations was $221,099, compared to a loss of $74,551 for the quarter in 1991. It was the third consecutive quarter the company reported a gross profit. "Since the beginning of 1991, we have taken write downs of properties to net realizable value of $13.8 million. Given the current economy and the fact that all our current projects are up and running profitably, we believe prior write downs have fairly valued our properties for today's market. Therefore, we did not take a write down in the third quarter nor do we anticipate taking further write downs.
 "While revenues continue to be low, we are seeing a slight upturn in our markets. Just in October we had eight additional units enter into escrow, seven in Southern California. This compares with total opened escrows of 17 during the third quarter and only 10 in the second quarter of this year. Although we are still in a recession, we are seeing some increased buying activity. However, it's too early to tell if the economy is really improving, so we will continue to focus on maintaining our long-term viability by minimizing expenses and protecting our capital position.
 "Also in October, Kaufman and Broad exercised their option on 49 lots at our Windsor project, Escrow closed on the lots at the end of October and will be reflected in fourth quarter figures. This sale will reduce debt by $2.2 million," Zaccaglin said. In December 1991, Kaufman and Broad, one of the country's largest and most successful developers, entered into an agreement to purchase a total of 118 home sites in Sonoma County from Calprop. Exercise of the 49 lots is the second such exercise under the agreement. Kaufman and Broad is expected to exercise its final option, on 32 lots, in March 1993.
 At Sept, 30, 1992, shareholders' equity was $13.4 million, or $2.85 per share. Total debt was $68.5 million, down from $75.6 million a year ago.
 For the nine months, revenues were $15,488,676, compared with $19,666,044 year-to-date in 1991. Sales of 95 units, comprised of 42 single-family homes, 15 townhomes, 1 paired home and 37 lots, compared with sales of 83 units, or 64 single-family homes, 12 paired homes and 7 lots, in the same period a year ago. The net loss for the period was $6,176,712, or $1.32 per share, compared to a net loss of $2,731,446, or 59 cents per share, in 1991.
 Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California. The company's common stock is traded on the American Stock Exchange under the symbol CPP.
 -0- 11/2/92
 /CONTACT: Stuart Eigler, vice president, secretary and treasurer of Calprop, 310-306-4314; or Nick Farina, 312-266-7800, or Lise Needham, 415-986-1591, both of Financial Relations Board, for Calprop/
 (CPP) CO: Calprop Corp. ST: California IN: CST SU: ERN


ML-TM -- SF002 -- 1646 11/02/92 13:18 EST
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Date:Nov 2, 1992
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