Catellus Board of Directors Authorizes Additional $50 Million for Stock Repurchase Program.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 27, 2001

Catellus Development Corporation (NYSE:CDX) announced today that its board of directors has authorized an additional $50 million for its stock repurchase program, bringing the total authorization since December 2000 to $200 million. Under this total $200 million authorization, the Company has purchased 7.7 million shares in 2001 for approximately $132 million at a weighted average price of $17.09 per share. Combined with the shares purchased last year under a prior year authorization, the Company has repurchased over 9.7 million shares, which represent approximately 9% of the total outstanding shares as of December 31, 1999.

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 one of the largest portfolios of developable land in the Western United States capable of supporting over 43 million square feet of new commercial development and an estimated 12,200 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 and opportunities. 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 the possibility of a general economic slowdown or recession;

-- changes in interest rates and capital markets; 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 filed with the Securities and Exchange Commission.