Catellus Completes $13.4 Million Land Sale to Condominium Developer At Santa Fe Place in San Diego.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--May 31, 2001

Catellus Development Corporation (NYSE:CDX) announced today that it has completed the first of two land sales at Santa Fe Place in downtown San Diego to Bosa Development of Vancouver, Canada for a total consideration of approximately $13.4 million. Bosa plans to develop a 39-story, 220-unit luxury condominium project on the site. Construction is scheduled to begin in the fall of 2001 and take approximately 24 months to complete. The second parcel sale of approximately the same size and value is expected to close later in 2001.

Nelson C. Rising, chairman and chief executive officer of Catellus, commented, "We are extremely pleased that the Bosa organization, with its outstanding reputation for quality, will be the developers of this stunning condominium project at Santa Fe Place. When combined with our planned office development, San Diego will have a new center of commerce and living that will be at the heart of the region's transportation hub."

According to Nat Bosa, president of Bosa Development, the new urban residences will continue the revitalization of San Diego's downtown housing market. "San Diego is in the midst of an historic transformation that will establish a true urban core for the region. A critical element is ensuring opportunities for people to both work and live downtown."

Santa Fe Place, a 15-acre site surrounding the historic Santa Fe train depot, is approved for the development of 3.3 million square feet of office, residential, hotel and retail uses. Catellus is currently marketing One Santa Fe Place, the first of two Class A office towers planned for development located adjacent to Bosa's condominium projects.

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 11,200 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.

Forfurther 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.