FOR RELEASE Wednesday, August 18, 1999 CALPROP REPORTS SECOND QUARTER RESULTS Company Reports Profitable Second Quarter MARINA DEL REY, CA, August 18, 1999 -- Calprop Corporation (OTCBB:CLPO), a California and Colorado home builder, in reporting financial results for the three and six month periods ended June 30, 1999, today reported that it has earned a net profit from operations for the second quarter ended June 30, 1999. "As a result of a strong California economy and sound projects, we achieved a net profit from operations for the fifth consecutive quarter. Additionally, our total units in backlog remains strong at 134 units, $31,100,000, from 151 units, $31,700,000, a year ago, reflecting a continuing strong demand for our homes," said Victor Zaccaglin, Calprop's chairman and chief executive officer. "The company is presently building in seven locations; two in southern California, three in northern California and two in the Colorado Denver Metro area. In implementing our strategy of diversifying laterally within the housing industry, we plan on commencing construction on two apartment projects within the next 120 days. We continue to pursue additional for sale housing projects and are in escrow to acquire 46 lots in Aurora, Colorado and 105 lots in Murrieta, California," Zaccaglin said. For the second quarter, Calprop's revenues were $18.4 million, an increase of $10.7 million or 140.8% from $7.6 million of revenues in the second quarter a year ago. Income from development operations was $511,209 for the second quarter, down $188,783 or 27.0% compared to the prior year quarter. Net income for the second quarter of 1999 was $74,834, or $0.01 per share on 10,602,242 weighted average shares and common stock equivalents, compared with net income of $105,667 or $0.01 per share on 10,483,423 weighted average shares and common stock equivalents, in the same quarter a year ago. The results were primarily driven by an increase in marketing expenses as typical start up costs for five projects reduced earnings as did additional costs on a completed project in Southern California. For the year-to-date period, revenues were $26.2 million, up 150.7% from $10.4 million in 1998. The company reported net income of $403,027 or $0.04 per share, for the six months ended June 30, 1999, a $791,523 increase from the net loss of $388,496, or ($0.04) per share, in 1998. The increase in net income is primarily the result of an increase in the revenue from the same period a year ago. Calprop Corporation, based in Marina Del Rey, California, builds quality homes in some of the most desirable communities in both Northern and Southern California as well as Colorado. The company's common stock is traded on the OTCBB under the symbol CLPO. - tables follow - 3 CALPROP CORPORATION Balance Sheets (Unaudited) June 30, December 31, 1999 1998 (Unaudited) ----------- ----------- Assets: Real estate development 68,484,512 65,282,197 ----------- ----------- Total investment in real estate 68,484,512 65,282,197 Other assets: Cash and cash equivalents 3,064,329 1,590,403 Prepaid expenses 61,980 88,775 Deferred tax asset 4,800,000 4,800,000 Other assets 776,033 760,514 ----------- ----------- Total other assets 8,702,342 7,239,692 ----------- ----------- Total assets 77,186,854 72,521,889 =========== =========== Liabilities and Stockholders' Equity: Trust deeds and notes payable 42,085,265 37,524,507 Related party notes 20,052,034 20,870,286 ----------- ----------- Total trust deeds and notes payable 62,137,299 58,394,793 Accounts payable and accrued liabilities 5,653,968 5,056,010 Warranty reserves 355,509 284,624 ----------- ----------- Total liabilities 68,146,776 63,735,427 Minority interest 184,180 326,941 Stockholders' equity: Common stock, no par value Authorized - 20,000,000 shares Issued and outstanding - 10,279,935 and 10,284,135 shares at June 30, 1999 and December 31, 1998, respectively 10,279,935 10,284,135 Additional paid-in capital 25,850,818 25,851,130 Deferred compensation (231,930) (241,130) Notes receivable from common stock sale (485,472) (474,134) ----------- ----------- Accumulated deficit (26,557,453) (26,960,480) ----------- ----------- Total stockholders' equity 8,855,898 8,459,521 =========== =========== Total liabilities and stockholders' equity 77,186,854 72,521,889 =========== =========== - more - 4 CALPROP CORPORATION Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------------- -------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- Development operations: Real estate sales 18,381,700 7,632,478 26,164,559 10,438,264 Cost of real estate sales 17,870,491 6,932,486 24,916,897 9,820,775 ----------- ----------- ----------- ----------- Income from development operations 511,209 699,992 1,247,662 617,489 Other income 30,536 11,370 55,739 47,351 ----------- ----------- ----------- ----------- Other expenses: General and administrative expenses 634,793 446,521 994,353 832,497 Interest expense 40,766 37,486 48,782 106,053 ----------- ----------- ----------- ----------- Total other expenses 675,559 484,007 1,043,135 938,550 ----------- ----------- ----------- ----------- Minority interests (208,648) 121,688 (142,761) 114,786 Income loss before benefit of income taxes 74,834 105,667 403,027 (388,496) ----------- ----------- ----------- ----------- Net income (loss) 74,834 105,667 403,027 (388,496) =========== =========== =========== =========== Basic and diluted net income (loss) per share $ 0.01 $ 0.01 $ 0.04 ($0.04) =========== =========== =========== =========== Weighted average number of common shares and common stock equivalents adjusted for stock dividends 10,602,242 10,438,423 10,592,513 9,846,674 Units single family 80 35 113 52 ----------- ----------- ----------- ----------- total 80 35 113 52 # # # 5