GRANITE DEVELOPMENT CORP. MAKES $1.0 MILLION ACQUISITION

Released_By: USANews
Date: 7/13/98
Time: 8:02:40 PM

For_Immediate_Release

Granite Development Corp. (GRAD-OTCBB), today announced that it has entered into a purchase agreement to acquire properties in San Francisco and Marin County. The land acquired is valued at $1.0 million dollars by the Appraisal Institute of California and will be used for the construction of premium residential dwellings and multi-use family housing. The resale value on these properties is estimated to be in excess of $2.5 million. This acquisition brings $3.00 per share book value to the company.

Granite Development Corp. is a fully integrated, real estate corporation focusing on the acquisition, development and construction of quality apartments and homes.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. as amended. The forward-looking statements contained in this release are statements that involve risks and uncertainties, including, but not limited to, the demand for apartment homes, the effects of economic conditions, the impact of competition and competitive pricing, changes in construction costs, the results of financing efforts, potential acquisitions under agreement, the effects of the company's accounting policies and other risks detailed in the company's filings with the Securities and Exchange Commission.

The company is featured on the Internet at GeraldsNet Stock Research Network. The URL; http://www.geraldsnet.com.

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