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CAMPEAU REPORTS NINE-MONTH 1991 RESULTS

             CAMPEAU REPORTS NINE-MONTH 1991 RESULTS
    TORONTO, Dec. 17 /PRNewswire/ -- Campeau Corporation today reported


its unaudited financial results for the fiscal nine-month period ended Oct. 31, 1991.
    Net profit for the nine-month 1991 period of $149 million included non-recurring earnings of $235 million from the sale of real estate. Without the substantial gain from the sale of rental property, the corporation would have reported a net loss for the period.  For the first nine months of 1991, the corporation's sales of land and rental properties generated proceeds of $1.068 billion.  In the 1990 nine-month period, the corporation reported a net loss of $548 million, including a $58 million provision for loss on real estate properties and $477 million share of losses of subsidiaries.  The 1991 results do not include any share of subsidiaries' operations as a result of the anticipated loss of a significant ownership interest in these companies.
    Effective fiscal 1991, Campeau Corporation no longer includes the losses of the subsidiaries in the United States operating under Chapter 11 of the Bankruptcy Code.  As previously announced, the practice not to include the results of the U.S. subsidiaries reflects the corporation's expectation that it will not retain significant ownership of these companies based upon the plans of reorganization filed with the U.S. Bankruptcy Court.
    Nine-month 1991 revenue for Campeau Corporation amounted to $185 million compared with $192 million in the prior year period.  There was a $20 million net decrease in revenue from rental operations compared with a year earlier resulted from the dispositions of properties partially offset by an increase due to the transfer of the Scotia Plaza office complex to rental properties from development assets at the end of the last fiscal year.  Revenue from land sales increased to $65 million from $52 million in the comparable 1990 nine-month period.
    On Oct. 23, 1991, Campeau Corporation, pursuant to the Ontario Business Corporations Act and Companies' Creditors Arrangement Act, was granted an interim order, subsequently amended, by the Ontario Court of Justice (General Division) for the advice and direction of the Court regarding the proposed financial restructuring of the Corporation.
                       CAMPEAU CORPORATION
                         Balance Sheets
                (in millions of Canadian dollars)
                                          10/31/91         1/31/91
    ASSETS
    Current Assets
      Cash and short-term deposits      $      7               13
      Accounts receivable                     24               36
    Total Current Assets                      31               49
    Real estate                              321            1,151
    Notes receivable                          37               53
    Other assets and deferred charges         14               16
    TOTAL ASSETS                        $    403            1,269
    LIABILITIES AND SHAREHOLDERS'
    DEFICIENCY
    Current Liabilities
      Accounts payable and accrued
       expenses                         $     84              145
      Short-term debt                        536            1,017
      Convertible subordinated debentures    573              548
    Total Current Liabilities              1,193            1,710
    Long-term debt                           103              609
    Total                                  1,296            2,319
    Excess of losses over investments
    in subsidiaries                        1,338            1,338
    Deferred income taxes                    113               96
    Shareholders' Deficiency
      Preference Shares                      140              140
      Ordinary Shares                        213              213
      Deficit                             (2,667)          (2,807)
      Foreign currency translation
       adjustment                            (30)             (30)
    Total Shareholders' Deficiency        (2,344)          (2,484)
    TOTAL LIABILITIES AND SHAREHOLDERS'
    DEFICIENCY                          $    403            1,269
                           CAMPEAU CORPORATION
                         Statements of Operations
          (in millions of Canadian dollars except per share amounts)
     Nine months ended Oct. 31;                1991         1990
    Revenue
     Real estate
      Rental                                 $  120          140
      Sale of land                               65           52
     Total                                      185          192
    Expenses
     Real estate
      Rental                                     49           48
      Sale of land                               47           46
      Selling, general and administrative         3            2
      Total                                      99           96
    Total                                        86           96
    Financing                                  (135)        (161)
    Depreciation and amortization                (8)          (8)
    Corporate expenses                          (12)         (11)
    Gain on sale of rental properties           235           54
    Provision for loss on real estate
     properties                                  --          (58)
    Total                                       166          (88)
    Share of losses of subsidiaries              --         (477)
    Total                                       166         (565)
    Income taxes                                 17          (44)
    Total                                       149         (521)
    Net loss from discontinued real
      estate assets                              --          (27)
    NET PROFIT (LOSS)                           149         (548)
    Accrued dividends on Preference Shares        9            9
    Net profit (loss) attributable to Ordinary
      Shareholders                            $ 140         (557)
    PER ORDINARY SHARE
    Net profit (loss)                         $ 3.17      (12.57)
                       CAMPEAU CORPORATION
            Statements of Changes in Financial Position
                 (in millions of Canadian dollars)
      Nine months ended Oct. 31;               1991          1990
    OPERATING ACTIVITIES
    Net profit (loss) from continuing
      operations                              $ 149          (521)
    Add (deduct):
    Gain on sale of rental properties          (235)          (54)
    Deferred income taxes                        17           (44)
    Depreciation and amortization                 8             8
    Amortization of financing costs               5            11
    Provision for loss on real estate properties  -            58
    Share of losses of subsidiaries               -           477
    Total                                       (56)          (65)
    Net changes in non-cash working capital
      balances related to operations:
     Accounts receivable                          7           (13)
     Accounts payable and accrued expenses      (14)           29
     Total                                       (7)           16
    Cash provided by (applied to) operating
      activities                                (63)          (49)
    FINANCING ACTIVITIES
     Debt issued and renegotiated                40            91
     Debt repaid                             (1,038)         (149)
    Cash applied to financing activities       (998)          (58)
    INVESTMENT ACTIVITIES
     Real estate                                 12            37
     Proceeds from sale of rental properties (1,025)         (109)
     Costs recovered from sale of land          (43)          (31)
     Notes receivable                           (21)           --
     Investments                                 --            37
     Other                                       22            23
     Discontinued real estate assets             --           (40)
    Cash provided by investment activities   (1,055)          (83)
     Decrease in cash during period              (6)          (24)
    CASH - BEGINNING OF PERIOD                   13            47
    CASH - END OF PERIOD                     $    7            23
    Cash comprises cash and short-term deposits.
    -0-                  12/17/91
    /CONTACT:  J. Patrick Howe of Wertheim Howe & Company, 416-594-1600, for Campeau/ CO:  Campeau Corporation ST:  Ontario IN:  REA SU:  ERN FC -- NY028 -- 2887 12/17/91 10:53 EST
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Date:Dec 17, 1991
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