GRANITE DEVELOPMENT CORPORATION ANNOUNCES SPIN-OFF

Released_By: USANews
Date: 7/13/98
Time: 7:50:21 PM

For_Immediate_Release

The Board of Directors of Granite Development Corporation has confirmed the spin-off of the company's RAMA Financial Corporation subsidiary. This action calls for 5% of the RAMA shares to be distributed as a dividend to all existing Granite shareholders of record as of June 9, 1997.

The Company also stated that there should be no adverse tax ramifications to Granite shareholders from this distribution. There are no current earnings and profits or accumulated earnings and profits within RAMA, and therefore, the distribution of RAMA stock to the Granite shareholders will be considered a return of capital.

RAMA Financial Corporation is a development stage enterprise engaged in asset management and business development. RAMA was incorporated in 1993 as Eco-Systems Marketing Corporation. The company was acquired with its current management in July 1996 and changed its name to RAMA Financial Corporation in April 1997.

Granite Development Corporation is an emerging real estate development company, which acquires and develops three distinct types of properties throughout the United States. Property that has all entitlements in place; income producing residential facilities, and commercial strip centers.

The Company is featured on the Internet at USANews Stock Research Network.

The URL is: http://www.geraldsnet.com

For more information, contact GERALD COMMUNICATIONS Gerald Sterchi -Director Investor Relations (916) 854-4931 Fax (916) 983-7783