Calprop Enters into Letter of Intent; Transaction Would Result in up to $7.2 Million Investment in the Company.

Business Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--July 23, 2003

Calprop Corporation (OTCBB:CLPO) announced today that it has entered into a letter of intent with a private California home builder for a cash infusion to the company of up to $7.2 million. While the terms of the arrangement remain to be worked out, it is anticipated that the investor would acquire a significant, non-controlling equity interest in Calprop and several seats on the board of directors. (Because of confidentiality concerns, the identity of the investor cannot be revealed at this time.)

The transaction remains subject to a number of contingencies, including the completion of due diligence by said investor, negotiation of the terms of a definitive agreement and the absence of material adverse changes in the business of Calprop. In the meantime, Calprop has agreed not to entertain or solicit other offers to invest in the company. Because of the contingencies that remain to be resolved, no assurance can be given that the transaction will be completed.

Victor Zaccaglin, Calprop's chief executive, said, "We are extremely pleased at the prospect of partnering with a firm of this home builder's caliber. If consummated, the cash infusion will enable Calprop to retire existing debt and pursue additional projects. Most exciting to us, however, is the opportunity to work along side one of the leading residential builders in California."

Calprop Corporation, based in Marina Del Rey, California, builds quality homes in some of the most desirable communities in both Northern and Southern California and Colorado. The Company's common stock is traded on the OTCBB under the symbol CLPO.