Excel Legacy Announces the Listing of Senior Notes.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 10, 2000

Excel Legacy Corp. (AMEX:XLG) (&uot;Legacy&uot; &uot;Company&uot;) announced the company's 10% Senior Secured Notes (Notes) have been listed and began trading today, Feb. 10, 2000 on the American Stock Exchange under the symbol XLG.B.

The Notes were originally issued on Nov. 5, 1999, as part of a tender offer by Legacy for the common stock of Price Enterprises Inc. (PEI), a real estate investment trust. The Notes are due Nov. 5, 2004.

Legacy has acquired, through its tender offer, 91% of the outstanding common shares of PEI. This acquisition gives Legacy and PEI combined assets approaching $1 billion. The PEI portfolio encompasses approximately 4.5 million square feet of gross leasable area in addition to development sites in Arizona, California, Colorado and Virginia.

&uot;We are very happy with the PEI acquisition,&uot; said Gary B. Sabin, chief executive officer of Legacy. &uot;We are aggressively managing this high quality portfolio. We have properties that are being considered for disposition, others for re-development and several new development sites within the existing portfolio. We believe we can add significant value to this group of assets.&uot;

Excel Legacy's philosophy is to pursue signature projects that have unique locations, concepts and/or entry barriers. Excel Legacy is a public real estate company organized to create value through the acquisition, development and management real property and real estate-related operating companies. Many of the projects are singularly unique with respect to the project and the inherent barriers to entry by competition.

Certain statements in this release that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation national and local economic conditions; the competitive environment in which the company operates; financing risks, property management risks; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled &uot;Certain Cautionary Statements&uot; in the company's Annual Report on Form 10-K for the fiscal year ended July 31, 1998, which discuss these and other factors that could adversely affect the company's results.