Jones Lang Lasalle (Services)

LaSalle Partners reports net earnings of $7.3 million in second quarter

CHICAGO, July 29, 1998 -- LaSalle Partners Incorporated (NYSE: LAP) today reported net earnings for the second quarter ended June 30, 1998 of $7.3 million, or $0.45 per share on both a basic and diluted basis, on revenue of $74.2 million. This compared with net earnings of $6.9 million on revenue of $57.9 million in the second quarter of 1997.

Revenue in the first six months of 1998 was $125.3 million compared with revenue of $89.6 million in the comparable 1997 period. Net earnings for six months year-to-date totaled $3.9 million, or $0.24 per share on both a basic and diluted basis, compared with $2.2 million in the first six months of 1997.

Stuart L. Scott, Chairman and Chief Executive Officer of LaSalle Partners, said, "Our strong second quarter performance resulted from the completion of a number of initiatives that we expected would occur later in the year. While predicting year end results is difficult, at this point, we are comfortable that the First Call consensus estimate of $1.59 is achievable for the full year."

Notable events for LaSalle Partners in the second quarter included:

The official opening of offices in New Delhi, India and Shanghai, China, thereby expanding LaSalle's presence to eight key international markets to serve the growing global real estate needs of clients.
The completion of the initial public offering of LaSalle Hotel Properties (NYSE: LHO), a real estate investment trust advised by LaSalle Partners Incorporated. LaSalle Hotel Properties' portfolio includes twelve full-service hotels in major business and convention markets, two of which were acquired following the offering. In conjunction with the offering, LaSalle Partners invested an additional $15.1 million in the REIT, bringing its total investment to $18.8 million.

Second Quarter 1998 Segment Highlights
Scott continued, "We experienced healthy revenue growth during the quarter across each of our core business segments – Corporate and Financial Services, Investment Management and Management Services."

In the second quarter, Corporate and Financial Services reported revenue of $18.8 million versus revenue of $14.7 million in the second quarter of 1997, principally on the strength of the firm's investment banking activities. Operating income for this segment declined to $3.4 million from $4.7 million in the second quarter of 1997 due to increased compensation accruals, an increase in transaction pursuit and closing costs, and the start-up costs associated with our new international offices.

Investment Management revenue for the second quarter increased to $29.0 million from $24.7 million in the year-earlier period. The revenue growth was driven in part by incentive revenue generated from the successful completion of the LaSalle Hotel Properties offering and the disposition of certain other assets. Additionally, new investment products, including the Francilienne office product in Paris, and a new hospitality venture in Europe contributed to the revenue growth. Operating income for the segment increased to $8.9 million from $5.6 million in the year-earlier period.

For the second quarter, Management Services posted a strong gain in revenue to $26.6 million from $18.9 million in the second quarter of 1997, due to a solid increase in leasing activity and an increase in Project Management revenue resulting from the Satulah acquisition. This segment decreased its operating loss from ($1.0 million) in the second quarter 1997 to ($42,000) in the second quarter 1998.

LaSalle Partners Incorporated, founded in 1968 and headquartered in Chicago, is a leading, vertically integrated global real estate services firm providing management services, corporate and financial services and investment management services for public and private institutions and other real estate owners and investors worldwide.

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 the Company 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 "Risk Factors" and elsewhere in the Company's prospectus filed as part of its registration statement (333-25741), under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in the Company's Annual Report or Form 10-K for the year ended December 31, 1997 and in other periodic reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Company expectations or results, or any change in events.

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