Catellus Acquires Interest in Residential Development Near Sacramento, California.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--June 5, 2001

Catellus Development Corporation (NYSE:CDX) announced today that it has acquired a $23 million ownership interest in The Parkway, an existing master-planned residential community located in Folsom, California, a suburb of Sacramento.

According to Nelson C. Rising, chairman and chief executive officer of Catellus, "We are very pleased with the opportunity to participate in The Parkway at this stage of its development. We have already initiated pre-marketing of lots to homebuilders, and expect to close on the sale of approximately 30% of the homesites by year-end 2001, which will further add to the strong performance we expect from the Residential Group this year."

The 250-acre site has approvals for 1,600 residential units including single-family homes, townhouses, and apartments. Under the new ownership, the project will be developed by subsidiaries of Catellus Residential Group and Parker Development, one of the previous owners and Catellus' existing joint venture partner at the nearby Serrano development in Eldorado Hills, California.

Catellus Development Corporation is one of the nation's premier diversified real estate development companies. The Company specializes in developing, managing and investing in a broad range of product types including industrial, residential, office, retail and major urban development projects. It owns a portfolio of rental properties totaling 29.2 million square feet and one of the largest portfolios of developable land in the Western United States capable of supporting over 47 million square feet of new commercial development and an estimated 12,800 residential lots and units. More information on the Company is available at www.catellus.com.

This release contains forward-looking statements including statements concerning plans; opportunities; markets and economic conditions; leasing, development, construction, rental, and sales activities; and property values. We do not undertake any obligation to revise these forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. These statements by their nature involve risks and uncertainties. In particular, among the factors that could cause actual results to differ materially from the results expressed in or implied by such statements are: changes in the real estate market or in general economic conditions, including the possibility of a general economic slowdown or recession; industry competition; changes in interest rates and capital markets; discretionary government decisions affecting the use of land, and delays resulting therefrom; changes in the management team; changes in tax laws; weather conditions and other natural occurrences that may affect construction or cause damage to assets; liability for environmental remediation and changes in environmental laws and regulations; failure or inability of third parties to fulfill their commitments or to perform their obligations under agreements; failure of parties to reach agreement on definitive terms or to close transactions; costs and availability of land and construction materials; changes in policies and practices of organized labor groups; shortages in electrical power; and other risks inherent in the real estate business.

For further information on factors, which could affect the company and the forward-looking statements in this release, the reader should refer to the company's report on Form 10-Q for the fiscal quarter ended March 31, 2001, and on Form 10-K for the fiscal year ended December 31, 2000, filed with the Securities and Exchange Commission.