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JAMES PETERS RETIRES FOLLOWING J.M. PETERS COMPANY'S RESTRUCTURING AND SMOOTH TRANSITION TO NEW MANAGEMENT

CALPERS Senior Debt Financing at Four Orange County Projects Secured
 NEWPORT BEACH, Calif., Feb. 11 /PRNewswire/ -- James M. Peters, founder of Newport beach-based J.M. Peters Company Inc. (AMEX: JMP) ("company"), has announced his retirement following the restructuring of the publicly held homebuilding firm now that it has emerged from majority-interest ownership by the Resolution Trust Corp. ("RTC"). His retirement is effective Feb. 28, 1993.
 Peters sold his company to Southmark Corp. in 1985. He notes that he planned to stay approximately five years, but has stayed more than two years beyond that time in order to direct the company "through a period of difficult economic conditions and transition." He has not formulated any specific plans about his personal future at this time, he said.
 Hadi Makarechian will continue to serve as the company's chairman and will assume the position of chief executive officer, while Dale Dowers will become president and continue as chief operating officer. Makarechian and Dowers hold the same positions at Capital Pacific, the privately held Newport Beach-based company which last year acquired the RTC's 85 percent majority interest in J.M. Peters Co.
 Peters, who will continue to serve as an adviser to the firm which bears his name, stated that now was "the appropriate time" for his retirement. "With the restructuring complete and new management in place, the company can now move forward into the '90s marketplace with enthusiasm and confidence."
 One reason for this confidence was the announcement that the company has secured equity and construction financing for four Orange County projects in an accord with Institutional Housing Partners ("IHP"), an adviser to the California Public Employees Retirement System ("CALPERS").
 According to Makarechian, this kind of new financing combined with J.M. Peters' long-standing reputation as an industry leader, presents the "virtually new company" with a restructured cost of land that will give the firm a "distinct and powerful competitive advantage."
 One of the four attached and detached home projects is currently selling and two more in Coto de Caza, Calif., and Portola Hills, Calif., are opening for sale this weekend, Feb. 13, with totally new product designs. "From" prices at the four developments range from the mid $100,000s to the low $300,000s, Makarechian added.
 With these four, Peters has a current total of nine projects at various stages of development that comprise 774 units in Orange, Riverside and Los Angeles counties, Calif. One of these, Redhawk, in the Riverside County city of Temecula, has recently sold 25 homes in a single month. A "remarkable sales pace, considering the general market and the typically slow holiday selling season," said Makarechian.
 Concurrent with Capital Pacific's acquisition of the majority interest, J.M. Peters Co.'s debt to San Jacinto Savings was restructured from $145 million to $49 million and purchased by Capital Pacific. Through the sale of assets, the restructured debt has been reduced to less than $5 million and is scheduled to be completely paid by the spring of 1993, according to Makarechian. The company's assets were written down from $194 million to approximately $120 million to reflect current market conditions. Following the debt restructure and adjustment of assets, the company has a net worth of more than $50 million.
 The company's restructuring included its decision to sell various projects in Los Angeles, Ventura and San Diego counties. J.M. Peters Co. also has chosen to consolidate formerly separate divisional operations of these regions. Building activity in these areas will now be conducted from the company's Newport Beach headquarters. These actions reflect J.M. Peters' focus on lowering costs so as to maintain the highest possible competitive edge in pricing.
 Simultaneously, the company is seeking out additional opportunities to acquire undervalued land assets in order to position itself for the potential of an improving Southern California housing market in the future. Because of the effectiveness of its restructuring, acquisition and funding process utilized to date, the company will continue in this direction as it pursues new additions to its land portfolio now that debt has been substantially reduced and much of its previously held land-inventory assets have been sold.
 J.M. Peters Co. is a publicly traded firm whose shares are traded on the American Stock Exchange under the symbol "JMP." Founded in 1975, the company has established a national reputation as a premier residential builder in Southern California, where it has built and sold more than 7,000 detached and attached homes.
 -0- 2/11/93
 /CONTACT: Dale Dowers, president and COO of J.M. Peters, 714-854-2500/
 (JMP)


CO: J.M. Peters Company Inc.. ST: California IN: CST SU: PER

KJ-JB -- LA013 -- 5560 02/11/93 09:30 EST
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Date:Feb 11, 1993
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