Catellus Announces Election of New Non-Executive Chairman and Re-Election of Incumbent Board of Directors.

SAN FRANCISCO--(BUSINESS WIRE)--May 28, 1998--The Board of Directors of Catellus Development Corp. (NYSE:CDX) announced today that it has elected William M. Kahane as its new non-executive chairman of the board.

Kahane has been a Director of Catellus since 1997 and served as chairman of the Finance Committee. He is currently the managing partner of Milestone Partners Limited, an investment banking and financial advisory firm and is also chief investment officer of Robert H. Burns Holdings Ltd., a privately held investment company.

Kahane has over 20 years of real estate experience, including 11 years with Morgan Stanley. He currently sits on the boards of three privately held entities: Robert H. Burns Holdings Ltd.; Robert H. Burns Ventures Ltd.; and Yue-Sai Kan Cosmetics.

"I am delighted to assume this additional responsibility as non-executive chairman for Catellus," said Kahane. "My fellow directors and I have the greatest respect for Nelson Rising and his management team and are excited about the future of the company. I look forward to heading the board as Catellus continues to differentiate itself as one of the nation's leading real estate developers."

"Bill brings extensive leadership skills and significant experience in real estate to the position of non-executive chairman," said Nelson C. Rising, president and chief executive officer of Catellus. "On behalf of the board of directors and the company, we are honored that he has accepted this new role and look forward to working with him."

Jacqueline R. Slater, the outgoing non-executive chairman will continue to serve as a director. Slater was elected chairman in 1997 for a one-year term and has been a director of Catellus since 1993.

The company also announced today at its 1998 Annual Meeting of Stockholders that its 11 incumbent directors were re-elected for a one-year term: Joseph F. Alibrandi, Daryl J. Carter, Richard D. Farman, Christine Garvey, William M. Kahane, Donald J. McNamara, Leslie D. Michelson, Nelson C. Rising, Jacqueline R. Slater, Thomas M. Steinberg and Beverly Benedict Thomas.

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.

Catellus' strategic land portfolio has a development potential of over 49.1 million square feet of new commercial development and an estimated 17,100 residential units. At March 31, 1998, 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.

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