Jones Lang Lasalle (Services)

Jones Lang LaSalle Announces First Quarter Results
Company Realigns Segments Reporting Following Merger to Reflect Expanded Regional and Global Expertise

CHICAGO and LONDON, May 11, 1999 - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported first quarter actual revenue of $101.4 million versus $51.1 million for the first quarter of 1998, and a net loss of $55.4 million in the first quarter 1999 versus a net loss of $3.4 million for the prior year period. The first quarter 1999 loss of $3.09 per share includes $46.2 million of non-cash compensation expenses associated with the issuance of shares pursuant to the recent merger between LaSalle Partners and the Jones Lang Wootton companies, and $7.8 million of non-recurring transition and integration costs associated with the merger and the October 1998 acquisition of COMPASS.

In order to provide Jones Lang LaSalle shareholders and potential investors with a better understanding of the ongoing operations of the Company, attached to this release is an analysis of the first quarter 1999 adjusted pro forma operations of Jones Lang LaSalle. These adjusted pro forma results include the operations of the Jones Lang Wootton companies from the beginning of the year through the closing date of the merger, and exclude the non-recurring transition and integration costs and non-cash compensation expenses associated with the merger and the COMPASS acquisition.

On an adjusted pro forma basis, Jones Lang LaSalle reported a loss for the quarter of $13.3 million, on adjusted pro forma revenue of $159.9 million. The adjusted pro forma loss, which equated to $.43 per share on total committed shares, was consistent with the Company's historical reporting patterns and management's expectations.

Underscoring the seasonal nature of the real estate industry, the Company typically reports a sizeable loss in the first quarter, followed by modest profitability in the second and third quarters, with the fourth quarter generating the vast majority of full-year profitability.

Stuart L. Scott, chairman and chief executive officer of Jones Lang LaSalle, said: "The first quarter has historically been a building period for us each year as it is for the real estate industry in general, and, as expected, we reported a net loss for the period. However, I am confident that the benefits we impart to our clients as a result of our merger will create a platform for future success. Already this merger is generating opportunities to leverage our strength as 'The Real Estate Services Firm of the Future™' and support the development of several growth strategies we have outlined. Since the completion of the merger, we have:

Worked to achieve our goal of delivering consistent, high-quality service across markets and disciplines for clients with multinational real estate requirements, through the creation of our Global Services Management group. This group, which is staffed with senior professionals from around the globe, is providing the resources and foundation to create best practices and deliver consistent client service throughout the Company.
Supported our objective of expanding existing client relationships while attracting new clients who require a single global partner. In the first quarter of 1999, Jones Lang LaSalle gained 15 new business assignments, attributed principally to the strength of geographic and product coverage resulting from the merger. These new business wins include Xerox Corporation for a disposition and hotel services assignment in Northern Virginia, Saks Fifth Avenue for an investment sales transaction in San Francisco, and a new strategic alliance with SAIC, a San Diego-based global consultancy firm, for exclusive tenant representation services and project management services across the United States.

Explaining the Company's new reporting structure, Scott stated, "To align our reported financial information with the new management structure of the Company, and to more effectively convey our scope of services and geographic breadth, we have reorganized our segment reporting into six components. The new segments are comprised of the two globally managed operations of Hotel Services and Investment Management, as well as four regionally managed segments within Owner and Occupier Services that consist of the Americas, Europe, Asia and Australasia. The regionally managed Owner and Occupier Services include our property management, facility services, leasing and transaction services. We believe this reporting structure better reflects the wide range of vertically integrated services we now deliver on a regional and global basis as a result of our merger."

Jones Lang LaSalle (NYSE: JLL) is the world's leading real estate services and investment management firm, operating across 96 key markets in 34 countries on five continents. The company provides comprehensive and wide ranging integrated expertise on a local, regional and global level to owners, occupiers and investors. It operates through six business segments: Hotel Services, Investment Management and four geographic regions of Owner and Occupier Services. The company's investment management business, LaSalle Investment Management, is one of the world's largest and most diverse real estate investment management firms with $20.5 billion (£12.6 billion) of assets under management. Jones Lang LaSalle is also the industry leader in real estate management services with a portfolio of more than 680 million square feet of property under management.

Statements in this press release regarding, among other things, future financial results and performance, achievements, plans and objectives may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives of Jones Lang LaSalle to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include those discussed under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in LaSalle Partners' Annual Report on Form 10-K for the years ended December 31, 1998, under "Risk Factors," "The Transactions," "The Purchase Agreements," "JLW Management's Discussion and Analysis of Financial Conditional and Results of Operations of the JLW Companies," and elsewhere in LaSalle Partners' Proxy Statement dated February 4, 1999, and in other reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle's expectations or results, or any change in events. Statements in this press release regarding parties other than Jones Lang LaSalle are based upon representations of such other parties.

Note to Editors: Media contacts may listen to the Jones Lang LaSalle first quarter earnings discussion at 9:00 a.m. EDT on May 11, 1999 with investors and market analysts by dialing +1 719-457-2637 outside the United States, or +1 800-946-0705 within the United States. A replay of the call may be accessed by dialing +1 402-220-0866 outside the United States and +1 888-831-6373 in the United States between 12:00 p.m. EDT on May 11, 1999 to 5:00 p.m. EDT on May 18, 1999.

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