Catellus Announces Transactions With BNSF Railway, Specialty Merchandise Corporation, and Ford Motor Company.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 4, 2002

Catellus Development Corporation (NYSE:CDX) announced today the sale, by a wholly owned affiliate, of 105.39 acres at the Kaiser Commerce Center to The Burlington Northern and Santa Fe Railway Company (NYSE:BNI). BNSF intends to use the land to construct a rail served facility to meet the growing demand for rail transportation in Southern California.

Nelson C. Rising, chairman and chief executive officer of Catellus, commented, "We are very pleased to have completed this land sale to BNSF. The facility that the railroad intends to construct will improve goods movement at the Kaiser Commerce Center. The land sale also fits within our overall strategy for Kaiser, and will further enhance its value as one of the premier distribution warehouse sites in the Inland Empire."

Catellus acquired the Kaiser Commerce Center, a 588-acre former steel mill site, through the wholly owned subsidiary in June 2000. After the land sale to BNSF, the planned business park will be capable of supporting up to seven million square feet of additional development. The California Transportation Commission also has approved $18.6 million in state transportation funds for the design and construction of an improved highway overpass at the site, which is located near the intersection of Interstates 10 and 15, a freeway exchange that accommodates forty percent of the truck traffic that enters and leaves the state of California.

Catellus owns a number of other business parks in the area, including Crossroads Business Park, Rancho Cucamonga Corporate Park, Ontario Pacific Distribution Center, and Pacific Gateway.

Catellus Announces New Lease At Kaiser Commerce Center

In addition to a previously announced 86-month lease with Exel, PLC, a global supply chain management company, for an 830,000 square foot build-to-suit distribution warehouse at Kaiser, Catellus also has signed a five-year lease for a 607,000 square foot distribution warehouse for Specialty Merchandise Corporation, an import distribution company. SMC has an option to purchase the building upon completion, which is scheduled for the third quarter 2002.

Catellus Completes Multiple Leases With Ford Motor Company

Catellus also has recently signed four distribution warehouse leases with Ford Motor Company. These deals include a 608,000 square foot facility at the Spreckles Business Park in Manteca, California; a 200,000 square foot lease at the Stapleton Business Center in Denver; a 246,000 square foot lease at the Rancho Cucamonga Corporate Park; and a 252,000 square foot building in Fort Worth, Texas.

Catellus Development Corporation is one of the nation's premier diversified real estate operating 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 30.9 million square feet and one of the largest supplies of developable land in the Western United States capable of supporting over 41 million square feet of new commercial development and an estimated 10,200 residential lots and units. More information on the Company is available at www.catellus.com.

Except for historical matters, the matters discussed in this release are forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about plans, opportunities, and development. We caution you not to place undue reliance on these forward-looking statements, which reflect our current beliefs and are based on information currently available to us. We do not undertake any obligation to publicly revise these forward-looking statements to reflect future events or changes in circumstances.

These forward-looking statements are subject to risks and uncertainties that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by these statements. In particular, among the factors that could cause actual results to differ materially are: changes in the real estate market or in general economic conditions, including a general economic slowdown or recession; industry competition; availability of financing and changes in interest rates and capital markets; discretionary government decisions affecting the use of land, and delays resulting therefrom; changes in the management team; 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; costs and availability of land and construction materials; changes in policies and practices of organized labor groups; and other risks inherent in the real estate business.

For further information, you should refer to Catellus Development Corporation's report on Form 10-K for the fiscal year ended December 31, 2000, and Form 10-Q for the fiscal quarter ending September 30, 2001, each filed with the Securities and Exchange Commission.