CATELLUS REPORTS SECOND QUARTER AND FIRST HALF 1995 RESULTS.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 1, 1995--Catellus Development Corporation (NYSE: CDX) today reported second quarter net income of $3.1 million, compared to $6.6 million in the second quarter of 1994. After preferred stock dividends, the net loss to common stockholders was $2.8 million, or $.04 per share, compared to income of $645 thousand or $.01 per share in 1994.

The decrease in net income was, in part, due to a $3.3 million decrease in income from property sales. The Company continues to anticipate property sales in the range of $25 to $50 million during 1995 in order to meet its regular cash requirements, however, the amount of sales will fluctuate from quarter to quarter. In addition, income from joint ventures decreased $2.6 million due to the 1994 results reflecting the Company's share of the gain from a land sale. Partially offsetting these amounts were the cost savings resulting from the Company's overhead reduction program.

For the first six months of 1995, the Company had net income of $8.5 million, compared to $8.1 million in the first six months of 1994. After preferred stock dividends, the net loss to common shareholders was $3.4 million, or $.05 per share, compared to $3.8 million, or $.05 per share in 1994.

Net income increased in the first half of 1995 because of a $2.1 million increase in income from property sales and reduced overhead costs, partially offset by a decrease in revenues due to the successful settlement in 1994 of two environmental litigation matters, and reduced joint venture income as described above.

Nelson Rising, President and CEO said: "We continue to make progress in our overhead reduction program -- approximately $5.5 million for the first six months of 1995 compared to 1994. General and administrative costs declined by $1.2 million compared to last year, overhead costs associated with operating the portfolio declined by $2.0 million and overhead associated with property sales declined by $.9 million. In addition, the Company has benefited from a $1.4 million reduction in the overhead cost of the Company's development program in 1995. Partially offsetting these improvements was a one-time $.9 million charge for property taxes in the second quarter of 1995 due to a reassessment of one of the Company's office buildings."

Rising further noted: "In addition to cutting costs, the Company is successfully increasing its portfolio of operating properties by developing selected parcels. The Company currently has approximately 1 million square feet of new development either under construction or with binding leases prior to construction. In addition, as a further measure of the improving California economy, the Company's existing portfolio was 95% leased at the end of the second quarter, compared to 93.6% at March 31, 1995 and 94.8% at December 31, 1994."

Headquartered in San Francisco, California, Catellus Development Corporation is an owner, developer and manager of real estate assets which have a current value, as of December 31, 1994, of $1.8 billion. -0-

                 CATELLUS DEVELOPMENT CORPORATION

      CONSOLIDATED STATEMENT OF INCOME -- HISTORICAL COST BASIS
               (In thousands, except per share data)

                     Three months ended     Six months ended
                         June 30,               June 30,
                   1995         1994         1995         1994
                      (Unaudited)               (Unaudited)

Revenue
Property sales  $  3,506    $  15,272     $  11,721    $   17,576

Rental            26,474       26,097        53,108        51,505
Interest income      839          716         2,151         1,824
Equity in
 earnings of
 joint ventures    2,409        5,027         4,352         6,236
Other -- net         920        1,401         1,601         5,388
                  ------       ------        ------        ------
                  34,148       48,513        72,933        82,529

Costs and expenses
Cost of property
 sold              1,873       10,329         4,496        12,435
Operating and
 maintenance       6,247        6,546        12,537        13,983
Depreciation       6,193        6,510        12,602        13,028
General and
 administrative    2,617        3,127         6,106         7,284
Taxes other
 than income       5,257        4,500         9,832         9,264
Interest           6,687        6,020        13,140        12,503
                  ------       ------        ------        ------
                  28,874       37,032        58,713        68,497

Income before
 taxes             5,274       11,481        14,220        14,032

Income taxes       2,131        4,883         5,719         5,965
                  ------       ------       -------        ------
Net income        $3,143       $6,598        $8,501        $8,067

Preferred
 stock dividends   5,953        5,953        11,906        11,906

Net income
 (loss) applicable
 to common
 stockholders   $ (2,810)       $ 645      $ (3,405)     $ (3,839)

Net income
 (loss) per share
 of common stock  $(0.04)       $0.01        $(0.05)       $(0.05)

Average number
 of common
 shares           72,967       72,967        72,967        72,967

CONTACT: Catellus Development Corporation, San Francisco 

Sharon Davis, 415/974-4609