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THE PRESLEY COMPANIES ANNOUNCES BANK AGREEMENTS

 NEWPORT BEACH, Calif., March 31 /PRNewswire/ -- The Presley Companies (NYSE: PDC) today announced that its banks have agreed to amend the Company's principal credit facility, its revolving line of credit, effective on or before April 30, 1993. The amendment would extend the maturity of the revolving facility for two years and would revise and restructure the facility in various other respects.
 The amended credit line will provide for a maximum commitment of $340 million, which includes letters of credit up to $10 million, limited to the extent of eligible collateral. At March 31, 1993, the Company had approximately $317.2 million outstanding under the facility.
 The Company believes that the amended line will give it adequate borrowing capacity during the extended term of the line. However, because the Company's borrowing capacity will continue to be limited by the appraised values of its real estate inventory at any given time, lower appraisals in the future could reduce the Company's borrowing capacity and restrict its operations.
 The amended credit line will also raise the interest rate spread the Company will pay, initially by up to 1.5 percent, will give the lenders the right to buy up to 10 percent of the Company's common stock at $5 per share under certain circumstances, and restrict the Company's ability to engage in certain types of transactions including the purchase of new land. In addition, the commitment letter calls for reductions of the maximum commitment amount on specified dates and limits the use of borrowing proceeds to project related and general and administrative costs.
 Presley also announced that it has signed short-term extensions relating to its two joint venture projects. On March 29, 1993 one of these loans in the Horsethief Canyon Ranch joint venture project with an approximate outstanding amount of $19.1 million, which had matured on March 9, 1993, was extended through May 31, 1993. In addition, the Horsethief Canyon partnership and its lender signed a Commitment Letter outlining various terms to further extend the loan through March 31, 1995. The extension through March 31, 1995 is contingent upon the extension of the Company's Revolving Line of Credit. On March 31, 1993, the maturity date of a loan on the Carmel Mountain Ranch joint venture project with an approximate outstanding amount of $18.3 million was extended through May 31, 1993. The Company believes that current discussions with the banks on this project will result in a longer term extension of this loan, although no assurances can be given in that regard.
 The Presley Companies is one of California's oldest and largest homebuilders. It has operations in California, Arizona and New Mexico, with 39 sales locations, including 28 in its master-planned communities and 11 at its other projects.
 -0- 3/31/93
 /CONTACT: David Siegel or Craig Manchester of The Presley Companies, 714-640-6400/
 (PDC)


CO: The Presley Companies ST: California IN: CST SU:

KJ-LS -- LA034 -- 1784 03/31/93 20:28 EST
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Date:Mar 31, 1993
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