Approval of Valencia Water Company's Water Management Plan Upheld

April 10, 2002
Revised Estimate of First Quarter Net Income of 45 Cents Per Unit

The Newhall Land and Farming Co. announced that the California Public Utilities Commission (PUC) has denied opponents' request for a re-hearing regarding the Commission's approval of Valencia Water Co.'s water management plan and service area expansion. Valencia Water Co. is Newhall Land's wholly owned public water utility company serving Valencia and nearby areas. Opponents have appealed the decision to approve the water management plan and service area expansion to the California Supreme Court.

Acceptance of such an appeal is discretionary with the Supreme Court, and the company believes that it is not likely that the court will accept the case for review. As previously announced, the PUC's approval permits Valencia Water to expand its service area to Newhall Land's Hidden Creek, Creekside, Alta Vista and West Creek communities. These communities include about 4,000 residential lots and apartments. Lots in Creekside, Hidden Creek and Alta Vista currently are being marketed to homebuilders. The Company's 2002 business plan includes the sale of approximately 500 lots in Creekside and Hidden Creek.

The company also announced that it has revised its estimate of first quarter 2002 net income to approximately 45 cents per unit, instead of 40 cents per unit as previously announced. First quarter 2001 per unit net income was 11 cents. Although the company has revised its estimate of first quarter earnings, the company currently anticipates 2002 earnings for the year to be approximately $1.00 per unit, the same amount as previously announced.

Source: Businesswire