Catellus Acquires 280-Acre Industrial Land Site Near Portland International Airport.

SAN FRANCISCO--(BUSINESS WIRE)--July 1, 1998--Catellus Development Corp. (NYSE:CDX) announced today that it acquired 280-acres of industrial land located in Portland, Ore. four miles east of the Portland International Airport.

The entitled site, known as Southshore Corporate Park, can support up to four million square feet of light industrial, warehouse, manufacturing and office space.

"We like the Portland market -- Portland has a shortage of quality industrial sites on which a permit can be pulled quickly for immediate development. Combined with the area's low industrial vacancy rates, this market represents another opportunity for us to leverage our development skills and add value quickly to a newly acquired site," said Nelson C. Rising, president and chief executive officer of Catellus Development Corp.

"This acquisition is part of the company's ongoing strategy to pursue new development opportunities in markets with population growth, job growth and existing supply constraint dynamics."

In 1997, Catellus acquired a total of 412 acres of land for industrial development with the potential for 5.8 million square feet of industrial space. Development or pre-development has started on all of these acquisitions, with the majority of them expected to contribute to earnings this year.

Over 1.4 million square feet of construction is under way on industrial land sites acquired in 1997. It is anticipated that the first phase of development at the newly acquired Portland site will contribute to earnings in 1999.

Catellus Development Corp. is one of the nation's premier diversified real estate operating companies with one of the largest portfolios of developable land in the western United States. The company develops, manages and owns a broad range of product types including industrial, residential, office, retail and major mixed-use projects.

At March 31, 1998, Catellus' strategic land portfolio had a development potential of over 49.1 million square feet of new commercial development and an estimated 17,100 residential units. The company's portfolio included 18.1 million square feet of income-producing buildings, 10,600 acres of income-producing land leases, interests in a variety of joint ventures and approximately 782,000 acres of desert and agricultural land.

The statements contained herein which are not historical facts are forward-looking statements based on economic forecasts, strategic plans and other factors, which by their nature, involve risk and uncertainties. In particular, among the factors that could cause actual results to differ materially are the following: business conditions and general economy; competitive facts; political decisions affecting land use permits; discretionary government decisions affecting use of and access to land; interest rates and other risks inherent in the real estate business. For further information on factors which could affect the company and the statements, the reader should refer to the company's filings with the Securities and Exchange Commission.

    CONTACT: Catellus Development Corp.
              Jennifer K. Ruddock, 415/974-4649