CBRE Holding, Inc. Reports Second Quarter 2002 Results.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Aug. 6, 2002

CBRE Holding, Inc., parent corporation of CB Richard Ellis Services, Inc., one of the world's leading real estate services companies, today reported its results for the three and six months ended June 30, 2002.

Revenue totaled $284.9 million for the second quarter ended June 30, 2002, compared to $284.8 million for the second quarter ended June 30, 2001. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the second quarter totaled $33.4 million, a $12.9 million, or 62.8%, increase from last year's same-period results.

Revenue totaled $508.9 million for the six months ended June 30, 2002, which represents a $48.5 million, or 8.7%, decrease from the prior year. EBITDA for the first six months of 2002 was $44.5 million, a $10.0 million, or 28.8%, increase from the prior year.

On August 7, 2002, at 9:30 a.m. Pacific time, the Company will hold a conference call with its bondholders to discuss its results for the quarter ended June 30, 2002. To access the call, dial 800-553-0349, and request CB Richard Ellis Second Quarter 2002 Earnings (outside the United States, please call 612-332-1210). A transcript of the call will be available on www.cbre.com for review within seven working days of the call.

CBRE Holding, Inc. operates its business primarily through its wholly owned subsidiary CB Richard Ellis Services, Inc., one of the world's leading real estate services companies. Headquartered in Los Angeles with approximately 9,300 employees worldwide, the company serves real estate owners, investors and occupiers through 221 offices in 47 countries. Services include property sales and leasing, property management, corporate services and facilities management, mortgage banking, investment management, capital markets, appraisal/valuation, research and consulting. For more information about CB Richard Ellis, visit the company's Web site at www.cbre.com.

This release contains forward-looking statements concerning expectations for future revenues, cost reductions and earnings performance. These statements reflect the company's current plans and expectations and are based on information currently available to it. They rely on a number of assumptions and estimates, which could prove to be inaccurate, and which are subject to risks and uncertainties that could cause the Company's actual results to vary materially from the results anticipated. CB Richard Ellis undertakes no obligation to update publicly or revise any forward-looking statements. These statements are qualified by reference to the Company's 2001 Annual Report and Form 10-K and its quarterly reports on Form 10-Q.

                           CBRE HOLDING, INC.
                           OPERATING RESULTS
      FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2002, AND 2001
                        (Dollars in thousands)
                              (Unaudited)

                              Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                                2002      2001       2002      2001

Revenue from real
 estate services              $284,893  $284,849   $508,883  $557,347

Costs and expenses:
  Commissions, fees and
   other incentives            130,761   133,139    231,027   256,106
  Operating, administrative
   and other                   120,735   131,201    233,371   266,711
  Depreciation and amortization  4,111    11,446     11,703    23,142
  Merger-related and other
   nonrecurring charges             23     5,608        605     5,608

Total costs and expenses       255,630   281,394    476,706   551,567
Operating income                29,263     3,455     32,177     5,780
Interest income                    534     1,272      1,398     2,072
Interest expense                14,904    11,133     30,921    20,188

Income (loss) before
 income taxes (benefit)         14,893    (6,406)     2,654   (12,336)
Income taxes (benefit)           7,604    (4,155)     1,460    (7,239)

Net income (loss)             $  7,289  $ (2,251)  $  1,194  $ (5,097)

EBITDA excluding merger-
 related and other
 nonrecurring charges         $ 33,397  $ 20,509   $ 44,485  $ 34,530

EBITDA margin excluding merger-
 related and other
 nonrecurring charges             11.7%      7.2%       8.7%      6.2%


                  CB RICHARD ELLIS SERVICES, INC. (a)
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)
                              (Unaudited)

                                          June 30, 2002 Dec. 31, 2001
Assets:
    Cash and cash equivalents                $   17,995    $   57,447
    Warehouse receivable (b)                    142,300       106,790
    Other current assets                        208,159       215,681
    Property and equipment, net                  64,928        68,451
    Goodwill and other intangible assets, net   676,762       647,660
    Deferred taxes, non current                  35,096        54,002
    Cash surrender value of insurance policies,
     deferred compensation plan                  63,975        69,385
    Other assets                                151,511       142,888
Total assets                                 $1,360,726    $1,362,304


Liabilities:
    Current liabilities, excluding debt      $  188,000    $  258,271
    Warehouse line of credit (b)                142,300       106,790
    Revolver and swingline credit facility       30,000            --
    Senior secured term loan tranche A           42,500        46,250
    Senior secured term loan tranche B          183,150       184,075
    11 1/4% senior subordinated notes           225,837       225,737
    Other debt (c)                               62,799        65,396
    Deferred compensation liability             100,034       105,104
    Other long-term liabilities                  46,990        46,661

Total liabilities                             1,021,610     1,038,284

Minority interest                                 4,608         4,296

Stockholders' equity                            274,088       260,068
Mezzanine notes                                  60,420        59,656
Total stockholders' equity                      334,508       319,724

Total liabilities and stockholders' equity   $1,360,726    $1,362,304


(a)    CB Richard Ellis Services, Inc. is a wholly owned subsidiary of
       CBRE Holding, Inc.

(b)    Includes Freddie MAC loan receivables and related non-recourse
       warehouse line of credit of $142.3 million and $106.8 million
       at June 30, 2002, and December 31, 2001, respectively.

(c)    Includes non-recourse debt relating to a building investment in
       Japan of $40.7 million and $37.2 million at June 30, 2002, and
       December 31, 2001, respectively.