Catellus Exceeds Industrial Development and Non-Strategic Land Sales Goals.

SAN FRANCISCO--(BUSINESS WIRE)--January 7, 1997--Catellus Development Corp. (NYSE:CDX) reported today that it exceeded its previously announced goals of increased industrial development and sales of non-strategic land:

-- Industrial development - The company added 645,000 square feet of new industrial development (in the form of construction starts and/or signed leases) in the fourth quarter of 1996. Total new industrial development for 1996 was 3.3 million square feet which exceeds the previously announced goal for 1996 of 3.0 million square feet.

Additionally, 627,000 square feet of industrial space was completed during the fourth quarter, bringing construction completed in 1996 to 1.6 million square feet. Of this amount, 1.3 million square feet were retained in the Company's portfolio and 340,000 square feet were sold.

-- Non-strategic land sales - Non-strategic land sales totaled $40.8 million for the fourth quarter, with sales prices averaging 105% of their December 31, 1995 current value.

A total of $123.7 million of non-strategic land assets have been sold following the October 1995 announcement of the company's goal to sell at least $100 million of non-strategic land assets by December 31, 1996.

"We are extremely pleased with our industrial development and land sales activity," stated Nelson C. Rising, President and Chief Executive Officer. "We established very aggressive goals and have been able to exceed them as a result of our improved core competencies. These skills, together with an improving California economy, should provide a strong foundation for the company's performance in 1997."

The company expects to release its audited 1996 year-end results in February of 1997.

Catellus Development Corporation is a diversified real estate operating company that owns, manages and develops real estate for its own account and others. At December 31, 1996, the company's portfolio included 16.5 million square feet of income producing properties, 5,300 acres of land leases, 837,000 acres of land, and interests in nine commercial joint ventures and three residential joint ventures.

The statements contained herein which are not historical facts are forward-looking statements based on economic forecasts, strategic plans and other factors, which by their nature involve risk and uncertainties. In particular, among the factors that could cause actual results to differ materially are the following: business conditions and general economy; competitive facts; political decisions affecting land use permits; interest rates and other risks inherent in the real estate business. For further information on factors which could impact the company and the statements, reference is made to the company's filings with Securities and Exchange Commission.

CONTACT: Stephen P. Wallace 

415/974-4666