Newhall Land Increases Estimated Net Income for 2002 to Range Between $1.62 and $1.67 Per Unit;...

Business Editors

VALENCIA, Calif.--(BUSINESS WIRE)--Dec. 17, 2002

The Newhall Land and Farming Company (NYSE:NHL)(PSE:NHL) today increased the Company's estimated per-unit net income for 2002 and updated investors on its operations.

Estimate for 2002

Gary

M. Cusumano, president and chief executive officer, reported, "Valencia's economy remains strong and is outperforming that of Los Angeles County. Based on transactions that already have closed escrow or currently are in escrow and are expected to close by year-end, the Company expects per-unit net income for the full year ending December 31, 2002 to be in the range of approximately $1.62 to $1.67 per unit compared with $3.56 per unit in 2001. Net income for 2002 is expected to include the sale of 1,330 residential lots, 66 net acres of commercial land and 3 net acres of industrial land. Combined, these sales are expected to contribute $165 million to revenues and $65.7 million to income in 2002. Net income for 2001 included the sales of 232 residential lots, about 92 acres of commercial and industrial land, the sales of the Town Center Plaza mixed-use building, the Bank of America Building, the Chiquita Canyon Landfill, and the Company's option to purchase 1,800 acres in Broomfield, Colorado. Combined, these sales added $174.2 million to revenues and $115.5 million to income in 2001.

Residential

"The residential new home market in Valencia continues to reach new records. New home sales by merchant builders on lots previously purchased from Newhall Land already have outpaced last year's record with 945 homes sold to date, compared to 873 homes sold for the entire year in 2001. To date, the Company in 2002 has sold a record 1,269 residential lots in Valencia, including 665 lots in the Westridge golf course community, the entire 329 lots in the community of Alta Vista and 275 lots encompassing the entire Hidden Creek community. Since the end of the 2002 third quarter, a total of 320 residential lots closed escrow and an additional 61 residential lots in Valencia Westridge are in escrow with closings expected to occur before year-end. Combined, these 381 residential lot sales are expected to contribute about $32 million to 2002 fourth quarter revenues and about $11 million to income. The Company has 759 residential lots in escrow in the community of Creekside with a combined sales price of approximately $53 million with closings expected in 2003. All escrow closings are subject to market and other conditions.