Calprop reports first quarter results; company reports income from development operations.

LOS ANGELES--(BUSINESS WIRE)--May 16, 1997--Calprop Corp. (OTCBB:CLPO), a California home builder, earned a profit form development operations while reducing general and administrative expenses in reporting financial results for the three months ended March 31, 1997.

"The first quarter of 1997 has seen some positive events and results. The company increased its revenues dramatically over last year and earned income from development operations. Additionally, we reduced our general and administrative expenses by 48 percent over 1996," said Victor Zaccaglin, Calprop's chairman and chief executive officer. "Finally, we entered into escrow to acquire another 112 lots in Murrieta, California," Zaccaglin continued.

"We are presently in the San Mateo, Sacramento, Riverside, Orange and soon the San Diego County markets in California. These projects provide us with a solid basis for continuing the trend toward profitability from operations. We are pursuing additional acquisitions in California and hope to secure two additional projects in the next 12 months," Zaccaglin said.

For the first quarter, Calprop's revenues were $5.1 million as compared with $1.8 million of revenues in the first quarter a year ago. Income from development operations was $1,207 as compared with losses of $59,511 a year ago. Net losses were $492,726, or 5 cents per share on 9,224,585 weighted average shares and common stock equivalents, compared with net losses of $770,131, or 18 cents per share on 4,899,030 weighted average shares and common stock equivalents, in the same quarter a year ago.

Zaccaglin noted, "These results are an improvement over a year ago and both the increase in revenue as well as the reduction in general and administrative expenses are indicators that point to future potential profitability. We intend to keep a lid on our general and administrative expenses while continuing to increase our revenue."

Calprop, based in Los Angeles, 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 OTCBB under the symbol CLPO. -0-

                          Calprop Corp.
                   Consolidated Balance Sheets

                            Assets
                         (Unaudited)
                                             March 31,   Dec. 31,
                                              1997        1996

Real estate development                    22,162,102   21,908,164
Investment in land                          4,037,187    4,037,187
  Total investment in real estate          26,199,289   25,945,351

Other assets:
  Cash and cash equivalents                   949,604    1,224,780
  Prepaid expenses                             19,293       29,587
  Deferred and other assets                   351,701      333,660
    Total other assets                      1,320,598    1,588,027

    Total assets                           27,519,887   27,533,378

                 Liabilities and Stockholders' Equity

Trust deeds and notes payable               4,836,934    5,011,866
Related party notes                        12,190,310   12,528,550
  Total trust deeds and notes payable      17,027,244   17,540,416
Community facilities district
 special tax bonds                          2,336,544    2,336,544
Accounts payable and accrued liabilities    3,621,000    3,025,783
Warranty reserves                             250,611      261,401
  Total liabilities                        23,235,399   23,164,144
Minority interest                             417,980       10,000
Stockholders' equity:
  Common stock, no par value
   Authorized -- 20 million shares
   Issued and outstanding -
   9,224,585 shares at March 31,
   1997 and Dec. 31, 1996                   9,224,585    9,224,585
Additional paid-in capital                 25,911,579   25,911,579
Deferred compensation                         (68,655)     (68,655)
Accumulated deficit                       (31,201,001) (30,708,275)
  Total stockholders' equity                3,866,508    4,359,234

  Total liabilities and
   stockholders' equity                    27,519,887   27,533,378
-0-

                           CALPROP CORP.
              Consolidated Statements of Operations
                            (Unaudited)

                                                  Three months ended
                                                       March 31,
                                                   1997        1996
Development operations:
 Real estate sales                           $5,144,495  $1,844,278
 Cost of real estate sales                    5,143,288   1,903,789
Income (loss) from development operations         1,207     (59,511)
Other income                                      7,386       9,896
Other expenses:
 General and administrative expenses            338,543     644,916
 Interest expense                                87,176          --
 Investment-property holding costs               75,600      75,600
 Total other expenses                           501,319     720,516
Net loss                                     $ (492,726) $ (770,131)
Net loss per share                             (5 cents)  (18 cents)
Weighted average number of common shares
 and common-stock equivalents adjusted
 for stock dividends                          9,224,585   4,899,030
Units:
 Single-family homes                                 16           4
 Townhomes                                            7           6
 Total                                               23          10

CONTACT: Calprop Corp.

Mark F. Spiro, 310/306-4314