Excel Legacy and Price Enterprises Announce Fourth Quarter and Year End 2000 Earnings.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 21, 2001

Excel Legacy Corp. (AMEX:XLG) today reported EBDADT (Earnings Before Depreciation, Amortization and Deferred Taxes) for the quarter ended Dec. 31, 2000 increased to $1.1 million as compared to a loss of $1.8 million for the quarter ended Dec. 31, 1999.

EBDADT per share (diluted and basic) increased to $0.02 per share for the quarter ended Dec. 31, 2000 compared to a loss of ($0.05) for the quarter ended Dec. 31, 1999. Net income for the quarter reported a loss of $1.3 million compared to a net loss of $1.8 million for the quarter ended Dec. 31, 1999. Net loss per share (diluted) was ($0.03) compared to net loss per share of ($0.05) during the same quarter last year. Total assets at the quarter's end were $325 million with $129 million of liabilities.

EBDADT for the year ended Dec. 31, 2000 was $13.2 million or $0.32 per share according to basic earnings per share and $0.21 per share according to diluted earnings per share. EBDADT for the year ended Dec. 31, 1999 was $3.7 million or $0.11 per share according to basic earnings per share and $0.07 per share according to diluted earnings per share. Overall EBDADT per diluted earnings per share increased by 200%. Net income for the twelve-month period ended Dec. 31, 2000 was $1.3 million or $0.03 per share basic and $0.02 per share diluted as compared to a loss of $0.8 million or ($0.02) per share basic and diluted in 1999. Total revenue for year ended Dec. 31, 2000 was $18.5 million compared to $25.9 million for the same period ended Dec. 31, 1999.

The results for the quarter were influenced by several factors including Bermuda, a development inside the company's Destination Villages, which had a loss of $856,000 in the fourth quarter 2000. Also, the contribution to Legacy from Price Enterprises Inc., was decreased from the third quarter 2000 primarily due to reduced earnings on proceeds from asset sales prior to reinvestment.

Legacy also owns 91.3% of the common stock of Price Enterprises, Inc. "PREN" (Nasdaq:PREN). In the PREN portfolio at Dec. 31, 2000, Legacy managed 34 properties comprising approximately 4.4 million square feet with annual total revenue of approximately $70.8 million. Funds from operations (FFO), a widely accepted measure of REIT performance, (less preferred dividends) for the quarter ended Dec. 31, 2000 for PREN were $2.0 million or $0.15 per diluted common share as compared to $0.3 million or $0.02 per diluted share for the same period during 1999. For the year ending Dec. 31, 2000, FFO less preferred dividends was $10.6 million or $0.79 per diluted common share compared to $6.5 million or $0.49 per diluted share for the prior year. Net income for the quarter for PREN was $8.0 million as compared to $6.3 million for the quarter ended Dec. 31, 1999. Net income for the year was $34.3 million compared to $32.7 million for the prior year.

For the year, FFO at Price Enterprises increased 10% to $43.9 million during 2000 compared to $39.8 million in 1999 due to property acquisitions, new notes receivable, expansion of the self-storage business, and an increase in recurring revenues from existing properties.

Excel Legacy Corp. is a real estate company which acquires, sells, develops, manages, invests, finances and operates real property and related businesses. The company performs within three business units: Commercial Property Unit, which manages company held properties and contains Price Enterprises Inc., a REIT; Business Investment Unit through which the company invests in public and private operating real estate-related companies; and Development Unit where the company develops signature projects that have unique locations, original concepts and significant competitive entry barriers.

Legacy uses a supplemental performance measure called Earnings Before Depreciation, Amortization and Deferred Taxes (EBDADT) to report its earnings. This parameter represents net income plus depreciation and amortization on real estate assets and deferred taxes. EBDADT is not a measure of operating results or cash flows from operating activities as defined by generally accepted accounting principles and it should not be used as an indicator of cash available or as an alternative to cash flows. Legacy believes, however, that EBDADT provides relevant information about its operations and is necessary, along with net income, for an understanding of its operating results. PREN uses a supplemental REIT performance measure called Funds from Operations.

Certain statements in this release that are not historical fact 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 "Certain Cautionary Statements" in the company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1999, which discuss these and other factors that could adversely affect the company's results.