Calprop Reports Fourth-Quarter and Year-End Results;Calprop Incurs a $1.6 Million Loss in 1997.

MARINA DEL REY, Calif.--(BUSINESS WIRE)--March 31, 1998--Calprop Corp. (OTC/BB:CLPO), a California home builder, Tuesday reported financial results for the three and 12 months ended Dec. 31, 1997, and the intent to acquire three new projects in the Denver/Colorado Springs, Colo., housing market.

"The company incurred a $1.6 million loss in 1997," said Victor Zaccaglin, chairman and chief executive officer of Calprop. "The company purchased two new developments during 1997, Parkland Hills, an 84-lot development in Sonoma County, Calif., and Montserrat Estates, a 112-lot development in Riverside County, Calif.

"Additionally, Calprop has entered into escrow to acquire three projects in the Denver area of Colorado: Saddlerock, a 94-lot development, in Aurora, Colo.; Templeton Heights, a 117-lot development, in Colorado Springs, Colo.; and Hunters Chase, a 170-lot development, in Thornton, Colo.

"The company is also in escrow, as previously reported, to acquire 410 lots in Milpitas, Calif. All four of these developments are scheduled to commence in 1998. I look to 1998 as a year to increase revenues to a level adequate to enhance the company's continued growth and potential profitability," Zaccaglin noted.

For the fourth quarter, revenues were $3.6 million, compared with $6.7 million in the fourth quarter a year ago. Net losses were $284,991, or 3 cents per share, compared with net losses of $2,597,236, or 28 cents per share, in the same quarter a year ago.

For the year, revenues were $22.9 million, up 67.0 percent from $13.7 million in 1996, reflecting an increase in the number of units sold in 1997. The company reported a net loss of $1,620,211, or 18 cents per share in the year ended Dec. 31, 1997, compared with a net loss of $9,200,342, or $1.28 per share in the year ended Dec. 31, 1996.

This reduction in losses is primarily the result of the recognition of $6,093,475 of impairment in real estate held for development and land held for investment in 1996, coupled with increased sales revenue during 1997.

"At year end 1997, we had a total of 160 single-family residences and 317 lots under development. This compares with 87 residences and 266 lots a year earlier. The total value on the balance sheet of real estate under development increased to $26.3 million, an increase of 20.9 percent as compared to the $21.9 million reported a year earlier," Zaccaglin stated.

"This increase reflects the positive impact of the purchase of two new developments in 1997 and the negative impact of the recognition of asset impairment during 1996."

At Dec. 31, 1997, shareholders' equity was $2.8 million, or 30 cents per share, compared with $4.4 million, or 47 cents per share, in 1996. Cash balances of $1.1 million are comparable with last year. Trust deeds and notes payable of $19.4 million increased 10.8 percent from $17.5 million in 1996. The company's debt-to-equity ratio increased to 4.46x, up from 4.02x in the prior year.

"Though the company was not profitable in 1997, we increased our sales revenue by 67 percent; acquired two new developments; entered escrow to acquire another four projects, three of which are in Colorado, a new geographic location. Most importantly, our backlog from a year ago is up 107 percent from $14,309,000 on March 15, 1997, to $29,674,000 this year.

"We continue to improve our efficiency as our general and administrative costs reflect a 61.5 percent decrease from the prior year. We remain committed to providing our shareholders with both stable growth and profitability in 1998," Zaccaglin concluded.

Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California (soon to be in Colorado). The company's common stock is traded on the OTC Bulletin Board under the symbol CLPO. -0-

                             CALPROP CORP.
                       Statements of Operations
                              (Unaudited)

                         Three Months Ended      Twelve Months Ended
                              Dec. 31,                 Dec. 31,
                         1997        1996        1997          1996
Development operations:
 Real estate sales    3,563,375    6,696,250   22,908,649   13,717,126
 Cost of real
  estate sales        3,574,413    6,901,995   22,853,947   14,150,124
                        (11,038)    (205,745)      54,702     (432,998)
 Recognition of
  impairment of real
  estate under
  development and
  land held for
  investment               -      (1,766,627)        -      (6,093,475)
 Income (loss) from
  development
  operations            (11,038)  (1,972,372)      54,702   (6,526,473)

Other income             29,326      141,382       91,738      181,788

Other expenses:
 General and
  administrative
  expenses              418,214      472,792    1,444,096    2,332,444
 Interest expense        88,997      217,854      339,766      217,854
 Investment property
  holding costs            -          75,600      185,838      305,359
Total other expenses    507,211      766,246    1,969,700    2,855,657

Minority interests      (18,075)        -         (17,192)        -

(Loss) income before
 benefit for income
 taxes                $(470,848) $(2,597,236) $(1,806,068) $(9,200,342)
Benefit for
 income taxes          (185,857)        -        (185,857)        -

Net Loss              $(284,991) $(2,597,236) $(1,620,211) $(9,200,342)

Net loss allocable
 to common stock (a)  $(284,991) $(2,597,256) $(1,620,211) $(9,402,589)

Net loss per
 share (a)             (3 cents)   (28 cents)   (18 cents)      $(1.28)

Weighted average
 shares of common
 stock                9,298,477    9,224,585    9,242,386    7,346,772

Units Sold:
 Single-Family Homes         18           21           71           40
 Townhomes                    0            9           31           26
Total                        18           30          102           66

(a) Includes $202,247 preferred dividend for the 12-month period ended
Dec. 31, 1996.
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                             CALPROP CORP.
                      Consolidated Balance Sheets
                        Dec. 31, 1997 and 1996

                                        1997             1996
Assets:

 Real estate under development      $26,325,978       $21,908,164
 Investment in land                   2,975,982         4,037,187
 Total investment in real estate     29,301,960        25,945,351
 Other assets:
  Cash and cash equivalents           1,100,028         1,224,780
  Prepaid expenses                       23,149            29,587
  Deferred and other assets             531,665           333,660
  Total other assets                  1,654,842         1,588,027

                                    $30,956,802       $27,533,378

Liabilities and Stockholders' Equity:

 Trust deeds and notes payable      $ 6,713,809       $ 5,011,866
 Related party notes                 12,718,829        12,528,550
  Total trust deeds and
   notes payable                     19,432,638        17,540,416
 Community facilities district
  special tax bonds                   2,336,544         2,336,544
 Accounts payable and
  accrued liabilities                 3,954,885         3,025,783
 Warranty reserves                      288,278           261,401
 Accrued dividends payable
  on preferred stock                       -                 -
 Total liabilities                   26,012,345        23,164,144
 Minority interest                    2,187,847            10,000
 Stockholders' equity:
  Common stock, no par value;
   20 million shares authorized;
   9,304,785 and 9,224,585
   shares issued and outstanding
   at Dec. 31, 1997 and 1996,
   respectively                       9,304,785         9,224,585
  Additional paid-in capital         25,886,906        25,911,579
  Deferred compensation                (106,595)          (68,655)
  Accumulated deficit               (32,328,486)      (30,708,275)
  Total Equity                        2,756,610         4,359,234

                                    $30,956,802       $27,533,378

CONTACT: Calprop Corp., Marina del Rey

Mark F. Spiro, 310/306-4314