Tejon Ranch Co. Reports Third Quarter Earnings -- 1998.

LEBEC, Calif.--(BUSINESS WIRE)--Nov. 4, 1998--Tejon Ranch Co. (AMEX:TRC) Wednesday announced a net income of $1,986,000, or 16 cents per common share, diluted, during the third quarter of 1998, compared with net income of $1,432,000 or 11 cents per common share, diluted, for the same period in 1997.

Total revenues for the third quarter of 1998 were $16,703,000, compared with $16,162,000 for the same period in 1997.

Operating activities for the nine months ending Sept. 30, 1998 resulted in net income of $262,000, or 2 cents per common share, diluted, compared with net income of $1,140,000, or 9 cents per common share, diluted, for the same period in 1997. Total revenues, including interest income, for the first nine months of 1998 were $32,605,000 compared with $25,465,000 for the same period in 1997.

The growth in revenues during the third quarter of 1998 and for this year is primarily attributable to increases in livestock division revenues. This increase in revenues was partially offset by reduced resource management division revenues and reduced farming revenues. The growth in 1998 livestock revenues is due to increases in livestock sales of $4,841,000 and to an increase in feedlot  revenues of $4,112,000.

Livestock sales are higher during 1998 due to 5,000 additional head of cattle being sold compared with the same period of 1997. The increase in cattle sold is the result of the company increasing its purchasing activity of cattle throughout 1997 and early 1998, which resulted in more cattle being available for sale during 1998 than during the same period of 1997. Feedlot revenues increased when compared with 1997 due to owning the feedlot for all of the first quarter of 1998 and to increased occupancy rates during the summer months. The feedlot was purchased March 10, 1997. Resource management revenues declined $145,000 in 1998 due primarily to reduced oil and mineral royalties. Oil and mineral royalties declined due to lower prices on Kern County crude oil.

Farming revenues declined $1,608,000 during the first nine months of 1998 when compared with the same period in 1997, due primarily to the timing of the start of the 1998 crop harvest. During 1997 almond, grape, and pistachio harvests were completed in the third quarter, whereas in 1998 only grape and almond harvests were started.

The decrease in earnings during the first nine months of 1998 when compared with 1997 is primarily attributable to increased costs within the livestock division, lower market prices on cattle sold, reduced faming revenues, and to increases in real estate expenses. Cost of sales on cattle increased $5,068,000 when compared with 1997 due to the sale of additional cattle as described above. During 1998, the company's net margin from the sale of cattle was reduced due to the drop in market prices largely attributable to the Asian economic crisis and to the large number of cattle in feedlots during the first half of 1998. Feedlot expenses increased $4,062,000 when compared with 1997 due to the timing of purchasing the feedlot during 1997 and to increased feed inventory costs. Real estate expenses increased during 1998 due to higher staffing costs, fixed water costs and planning costs.

The results of the first nine months of 1998 are generally not indicative of the results to be expected for the full year due to the seasonal nature of the company's agricultural activities.

Tejon Ranch Co. is a diversified agribusiness, land and real estate development company. Tejon Ranch Co.'s largest asset is the approximately 270,000-acre Tejon Ranch which is strategically located 60 miles north of Los Angeles. -0-

                      Tejon Ranch Co.
              Second Quarter Ended Sept. 30, 1998
              (in 000s except earnings per share)

                                 Three Months         Nine Months
                               1998        1997     1998      1997

Total Revenues                $16,703    $16,162   $32,605  $25,465
Net Income                      1,986      1,432       262    1,140
Net Income Per Share          16 cents   11 cents  2 cents  9 cents

Average Diluted Shares
 Outstanding:
12,731,216 for the third quarter of 1998
12,761,345 for the third quarter of 1997
12,759,562 for the nine months ending Sept. 30, 1998
12,714,286 for the nine months ending Sept. 30, 1997