Catellus announces election of four new board members.

SAN FRANCISCO--(BUSINESS WIRE)--May 30, 1997--The board of directors of Catellus Development Corporation (NYSE:CDX) announced yesterday at the company's Annual Meeting of Stockholders, the election of four new members to its board of directors: Richard D. Farman, William M. Kahane, Donald J. McNamara and Leslie D. Michelson.

"We are extremely pleased with the election of Mr. Farman, Mr. Kahane, Mr. McNamara and Mr. Michelson," said Joseph R. Seiger, non-executive chairman of the board. "They have a wide range of experience and capabilities which will further enhance the broad base of expertise currently on our board."

Seiger also announced his resignation as a director and as the non-executive chairman of the board, effective immediately. "I believe the company is well positioned to take advantage of its financial strength and superb management team. The new and incumbent directors provide a strong board for the shareholders. I want to devote more time to my personal business interests which continue to grow in scope, and this appears to be an ideal time to make the change."

"On behalf of the board of directors and the company, I want to thank Joe Seiger for the valuable insight and guidance that he has provided to Catellus over the past five years as a director and for the past three years as the non-executive chairman of our board," said Nelson C. Rising, president and chief executive officer.

"He was instrumental in guiding the company through its transition period in 1994 and has shown tremendous dedication to the company's shareholders. We will miss him and wish him continued success in his future endeavors. Our process to select a new non-executive chairman has begun, and we will make an announcement as soon as the chairman is identified."

The four newly elected directors are:

-- Farman, 61, is president and chief operating officer of Pacific Enterprises, a utility holding company based in Los Angeles, whose principal subsidiary is Southern California Gas Company, the nation's largest natural gas distribution utility.

In addition to his operating responsibilities at Pacific Enterprises, he is currently responsible for coordinating the proposed merger between Pacific Enterprises and Enova Corporation, the San Diego-based parent company of San Diego Gas & Electric. Farman has over twenty years of executive management experience in the utility industry, including over five years of service as chairman and CEO of Southern California Gas.

He earned his law degree and his BA in Economics from Stanford University. Farman is a resident of Ranchos Palos Verdes, Calif.

-- Kahane, 48, is currently managing partner of Milestone Partners Limited, an investment banking and financial advisory company and also chief investment officer of Robert H. Burns Holdings Ltd., a privately held investment company. Kahane has over sixteen years of real estate investment experience, including eleven years as managing director and then partner with Morgan Stanley.

He has his MBA from Stanford University, a law degree from UCLA Law School and a BA in Political Science from Occidental College. Kahane currently sits on the boards of three privately held entities, Robert H. Burns Holdings, Ltd., Robert H. Burns Ventures Ltd. and Yue-Sai Kan Cosmetics in China. He resides in Santa Barbara, Calif.

-- McNamara, 44, is the founder and chairman of the Hampstead Group, an investment company formed in 1988, which focuses on investments in real estate related operating companies. He currently sits on the boards of Felcor Suite Hotels (FSH), Malibu Entertainment Worldwide, Inc. (MBE), and Bristol Hotel Company (BH), for which he is chairman of the board.

McNamara earned his MBA from Harvard and his BA in architecture from Virginia Tech. He currently resides in Dallas, Texas.

-- Michelson, 46, is the co-founder, chairman and co-chief executive officer of Value Health Sciences, Inc., an applied health services research firm founded in 1988 and the leading vendor of sophisticated clinical software programs and consulting services for the managed health care industry.

With over fifteen years of executive experience, Michelson also serves on the board of G & L Realty Corporation (GLR), a health care real estate investment trust. He earned his law degree from Yale Law School and his BA in Social and Behavioral Sciences from The Johns Hopkins University. He currently resides in Pacific Palisades, California.

"These four new directors bring a broad range of experience and skills to the company that will assist us as we enter our growth phase," added Rising.

In addition to the four new directors, the board will include seven incumbent directors who were re-elected: Joseph F. Alibrandi, Daryl J. Carter, Christine Garvey, Nelson C. Rising, Jacqueline R. Slater, Thomas M. Steinberg and Beverly Benedict Thomas.

Catellus Development Corporation is a diversified real estate operating company that develops and manages real estate for its own account and others. The company's portfolio includes 16.6 million square feet of income-producing properties, 5,300 acres of land leases, interests in nine joint ventures and three residential joint ventures, as well as 837,000 acres of land.

CONTACT: Catellus Development Corporation

Jennifer K. Ruddock, 415/974-4500