Excel Legacy and Price Enterprises announce Third Quarter Earnings.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Oct. 30, 2000

Excel Legacy Corp. (AMEX:XLG) (Legacy) today reported EBDADT (Earnings Before Depreciation, Amortization and Deferred Taxes) for the quarter ended Sept. 30, 2000 increased to $7.6 million as compared to $2.7 million for the quarter ended Sept. 30, 1999, an 181% increase.

EBDADT per share also increased to $0.12 per share according to diluted earnings per share (diluted) as compared to $0.05 per share for the comparable quarter in 1999, an increase of 140%. EBDADT according to basic earnings per share (basic) rose to $0.18 per share as compared to $0.08 for the quarter ended Sept. 30, 1999, an increase of 125%. Net income for the quarter was $3.1 million compared to net income of $0.3 million for the quarter ended Sept. 30, 1999. Net income per share (diluted) was $0.05 compared to net income per share of $0.01 during the same quarter last year. The results for the quarter were positively influenced by the sale of the Scottsdale Galleria and the sale of undeveloped land in Orlando, Fla. Total assets at the quarter's end were $311.3 million.

Legacy also owns 91.3% of the common stock of Price Enterprises, Inc. "PREN" (Nasdaq:PREN). In the PREN portfolio at Sept. 30, 2000, Legacy managed 37 properties comprising approximately 4.5 million square feet with annualized total revenue of approximately $71.0 million. Funds from operations, a widely accepted measure of REIT performance, (less preferred dividends) for the quarter ended Sept. 30, 2000 for PREN were $2.3 million or $0.18 per diluted common share as compared to $1.6 million or $0.12 per diluted share for the same period during 1999 a 50%. Net income for the quarter for PREN was $8.6 million as compared to $6.8 million for the quarter ended Sept. 30, 1999. PREN sold two properties during the quarter.

"We are very happy about the results of this quarter. The results were influenced by Legacy's success in selling assets and using the proceeds to retire Legacy's short term debt, invest in Legacy's larger mixed-use developments and repurchase the company's common shares," stated Gary B. Sabin, president and chief executive officer of Excel Legacy. "We are also pleased to report strong FFO results during the third quarter in Price Enterprises. Our strategy of building value through our Commercial Property Unit, which contains our operating portfolio, has produced another strong quarter for Price Enterprises and Legacy."

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.