Catellus announces agreement to sell property to East Bay Regional Park District.

SAN FRANCISCO--(BUSINESS WIRE)--March 19, 1997--Catellus Development Corporation (NYSE:CDX) today announced that it executed an agreement with the East Bay Regional Park District and the State of California, Department of Parks and Recreation, to sell the majority of its East Bay shoreline property for $27.5 million. The land purchase will facilitate the creation of a new regional park that will extend along the San Francisco Bay east shore from Richmond to Emeryville and North Oakland.

The properties involved in this transaction consist of approximately 1,223 acres of submerged land or intertidal wetlands and 207 acres of undeveloped upland. The properties were acquired prior to World War II by Catellus' predecessor. Subsequent development proposals met with substantial local opposition, including anti-development political initiatives and more restrictive zoning on certain parcels, and led to a lengthy inverse condemnation lawsuit that was never conclusively resolved by the courts.

"The completion of this historic agreement to create the East Shore Regional Park represents a major milestone for the East Bay community and for the company," said Nelson C. Rising, president and chief executive officer of Catellus. "Entering into this single transaction is in the best interest of both the region and Catellus stockholders. It will lead to major new recreational facilities and preserve precious shoreline habitat while at the same time monetizing this asset for strategic reinvestment."

Each of the parcels that Catellus will convey is subject to environmental review by the Regional Water Quality Control Board. Catellus has committed to pay $3.5 million from the sale proceeds to remediate environmental conditions that may exist on the properties. Any balance remaining from such funds will be donated to the park for planning, operations and related purposes. Under the terms of the agreement, the Regional Board will complete its review and specific closings are expected to begin by the fourth quarter of this year.

Catellus Development Corporation is a diversified real estate operating company that owns, manages and develops real estate for its own account and others. On December 31, 1996, the company's portfolio included 16.4 million square feet of income-producing properties, 5,300 acres of land leases, interests in nine commercial joint ventures and three residential joint ventures and 837,000 acres of land.

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; discretionary government decisions affecting use of and access to land; interest rates; and other risks inherent in the real estate business. For further information on factors which could affect the company and the statement, reference is made to the company's filings with the Securities and Exchange Commission.

CONTACT: Jennifer K. Ruddock 

415/974-4649