Catellus Agrees to Acquire The Akins Companies.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 14, 1995--Catellus Development Corporation (NYSE:CDX) announced it has entered into a letter of intent to acquire The Akins Companies, a highly respected residential real estate company, consisting of a diversified group of entities involved in home building, community development and project management services, primarily in Southern California.

The acquisition is expected to become effective in the first quarter of 1996 and the new entity, to be called Catellus Residential Group, will be headquartered in Irvine, CA. The acquisition price will be paid in the form of Catellus common stock, with a market value of approximately $9.0 million.

In addition to developing planned communities and building both attached and detached homes, Akins has performed extensive contract development and consulting work for such entities as The Irvine Company, Rockefeller & Associates Realty, Shell Oil, Mission Land, Koll Real Estate Group and J.P. Morgan.

The Akins Companies have developed more than 10,000 homes throughout Southern California in the past 47 years. During 1994 Akins owned and managed projects that generated total revenues of $94 million from the sale of 640 homes and residential lots. Akins is currently planning, building and marketing more than 3,000 units in Southern California.

In making the announcement, Nelson C. Rising, President and Chief Executive Officer of Catellus stated: "The acquisition of The Akins Companies is another step in the implementation of our strategic plan to generate earnings from development of our extensive land holdings as well as from development activities on property owned by others."

Rising added, "We believe the recovery of the California economy will extend to the 'for-sale' housing sector in 1996 and this acquisition will position Catellus to take advantage of the opportunities which will exist with the continuation of job growth, an increase in household formations and a relatively stable interest rate environment."

Carl and Bruce Akins, currently Chairman and President, respectively of The Akins Companies, will serve in the same capacity with Catellus Residential Group which will assume all Akins current project activities as well as its 110 employees and corporate facilities.

Bruce Akins said: "The Catellus Residential Group's initial operating strategy will focus on establishing entitlement and development programs for Catellus residential properties as well as developing and marketing residential projects currently owned and managed by Akins. In order to promote future earnings growth, Catellus Residential Group plans an aggressive program to expand its operations to include new projects and alliances with other land owners which have residential assets they want to develop and market."

Earlier this year Catellus announced the formation of an urban housing division to pursue rental housing on urban in-fill locations owned by the Company and as well as sites owned by others. "The acquisition of The Akins Companies rounds out our core competencies in the housing sector," Rising stated.

Headquartered in San Francisco, California, Catellus Development Corporation is an owner, developer and manager of real estate assets which had a current value as of December 31, 1994 of $1.8 billion.

CONTACT: Catellus Development Corp.

Steve Wallace, 415/974-4666

or

Akins

Bruce Akins, 714/251-6166