Saxton Inc. Announces Court Order Requiring City of North Las Vegas to Approve Zoning Application for Major Single-Family Home Project

Business Wire, July 9, 1998

LAS VEGAS--(BUSINESS WIRE)--July 9, 1998--Saxton Inc. (Nasdaq NM:SXTN) Thursday announced that a Clark County district Court has entered an order requiring the City of North Las Vegas to approve the zoning application for a portion of the company's Taylor Ranch development in accordance with the existing North Las Vegas Master Plan.

Such zoning would permit the construction of at least 720 single-family homes on the property.

The Taylor Ranch site is located east of the North Las Vegas Airport between Simmons and Vista Streets and bordered by Brooks and Evans Avenues. The company had purchased the approximately 125-acre site in June 1997 in anticipation of the development of a residential community in conformance with the existing North Las Vegas Master Plan.

Although the company's applications for zoning were consistent with the Master Plan, a zoning dispute developed between the company and the City of North Las Vegas which has caused a delay of approximately 12 months in commencement of the Taylor Ranch project.

The court order requires the city to approve the company's application for zoning densities consistent with the Master Plan for approximately 83 acres of the Taylor Ranch property, and consistent with existing zoning for the approximately 42-acre balance of the property. The order also precludes the city from imposing unreasonable development conditions on the property.

The court also awarded the company statutory costs and attorney's fees. It is possible that the city may appeal the court order prior to the July 20 appeal deadline. It is also possible that the city may seek to take all or a portion of the property through a condemnation proceeding, in which case the company would be entitled to full compensation for the property. However, the company believes such action is unlikely.

Subject to the receipt of such zoning approvals and the issuance of building permits, as to which there can be no assurance, it is currently anticipated that construction at Taylor Ranch will commence in the third quarter of 1998 and that the first homes will be completed for delivery in the third quarter of 1999.

Generally, home prices are expected to range from $79,500 to $112,000, with a limited number of homes on certain selected sites on the western portion of the property starting at approximately $140,000.

Saxton is a real estate development company engaged in the design, development, construction, operation, ownership and sale of residential, commercial and industrial properties in the greater Las Vegas, Reno, Phoenix and Salt Lake City metropolitan areas.

The company's business is composed of three components: (i) the design, development, construction and sale of single-family homes and properties for its own portfolio; (ii) the performance of design, development and construction services for third-party clients; and (iii) property operations and management.

Forward-looking statements in this news release are made under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, the impact of competition, other risk factors inherent in the home building and real estate industries, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.

CONTACT: Saxton Inc., Las Vegas

James C. Saxon or Douglas W. Hensley, 702/221-1111

or

Kehoe, White, Savage & Co.

James K. White, 562/437-0655