The comparable adjusted results for the first quarter of 2000 exclude non-cash compensation expense of $18.3 million associated with the Jones Lang Wootton merger and a one-time catch-up, post tax charge of $14.2 million associated with the implementation of SAB101.

Jones Lang LaSalle reported a GAAP net loss for the first quarter 2001 of $3.5 million, or $0.12 per share, compared withÊ a GAAP net loss of $37.2 million, or $1.52 per share, in the comparable prior year period.

Business Segment Performance Highlights

Chris Peacock, President and Chief Operating Officer of Jones Lang LaSalle, said:Ê ãOverall, we are very encouraged by our first quarter performance, but we remain focused on the challenges we face in our Asia Pacific region.Ê In addition, we continue to monitor shifts in the global economic situation and how they could impactÊ real estate markets.ä

The following summary of business segment results compares the first quarter of 2001 to the same period of the previous year.Ê The segment results have been restated to reflect both the consolidation of the former Hotel Services segment into the regional Owner and Occupier Services segments and the implementation of SAB 101 for the year 2000.Ê

Owner & Occupier Services

         The Americas Region had a strong first quarter, with revenues up nearly 12 percent to $60.2 million in the current year versus $53.8 million in the first quarter of 2000 due to increased management services business, strong agency leasing fees and improved hotels performance.Ê The revenue strength did not fully flow through to the operating income line due to a $3.5 million charge for an unrecoverable receivable from a telecom client and a $1.0 million charge provided against a broadband investment.Ê In spite of these charges, the Americas posted an operating loss of $1.0 million better than last year, at $10.8 million.

         In Europe, the strong performance of 2000 continued with solid growth in implementation services in the UK, France and Germany during the quarter. The region delivered an increase in first quarter operating income of 38 percent, to $7.8 million, on a six percent increase in revenues, to $87.1 million versus $82.1 million in 2000.

         The weakness that the Asia Pacific region experienced at the end of 2000 continued into the first quarter, with an operating loss of $2.7 million compared with operating income of $0.6 million last year. Revenues declined to $27.7 million this quarter versus $30.8 million in the first quarter of 2000.Ê Transaction activity continued its sluggish pace, particularly in Hong Kong, although the management services businessÊ showed signs of strength.

Investment Management

         LaSalle Investment Management reported operating income of $4.8 million, an increase of more than 40 percent over the $3.4 million in 2000.Ê In the first quarter of this year, revenues declined slightly to $22.4 million compared with $23.2 million in 2000.Ê The increase in operating income was driven by gains from the firmâs disposition of its investment in LaSalle Hotel Properties and lower incentive compensation accruals.Ê

Outlook for Remainder of 2001

      ãIn uncertain times, corporations increase their focus on controlling their costs through outsourcing non-core functions and better utilizing their real estate,ä said Mr. Scott.Ê ãWe continue toÊ secure a number of such assignments, and we remain one of the few providers who can satisfy allÊ clientÊ requirements with respect to real estate.Ê As a result, while we are cautious about our outlook, we are not at this point altering our full year EPS target of $1.63.ä

Commenting on the remainder of the year, Mr. Scott said, ãOur first quarter performance exceeded our management plan for the period.Ê Our goal is to capitalize on that performance in achieving our year-end target.äÊ In line with the Companyâs historical pattern, management expects second quarter results to fall in a range surrounding break-even, followed by increasing levels of profitability in the third and fourth quarters.Ê

In addition, the Company noted that certain one-time, non-operational issues may impact GAAP results in future quarters, including:

• The previously disclosed, undetermined exposure due to the liquidation of a large Australian insurance company that provided public liability coverage for our Australian operations from 1994 through 1997;

• The expected restructuring of the Asia Pacific region to a business line/client focus from a geographical focus; and

• The impact of the current market turbulence on the future sustainability of our e-commerce investments.

Jones Lang LaSalle is the worldâs leading real estate services and investment management firm, operating across more than 100 markets on five continents.Ê The company provides comprehensive integrated expertise, including management services, implementation services and investment management services on a local, regional and global level to owners, occupiers and investors. Jones Lang LaSalle is also the industry leader in property and corporate facility management services, with a portfolio of approximately 700 million square feet (65 million square meters) under management worldwide.Ê LaSalle Investment Management, the companyâs investment management business, is one of the worldâs largest and most diverse real estate investment management firms, with $22.5 billion of assets under management.

Download First Quarter 2001 Financials (.xls format)

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.Ê 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.Ê Factors that could cause actual results to differ materially include those discussed under ãBusiness,ä ãManagementâs Discussion and Analysis of Financial Condition and Results of Operations,ä ãQuantitative and Qualitative Disclosures about Market Risk,ä and elsewhere in Jones Lang LaSalleâs Annual Report on Form 10-K for the year ended December 31, 2000, in Jones Lang LaSalleâs Proxy Statement dated April 6, 2001, and in other reports filed with the Securities and Exchange Commission.Ê Statements speak only as of the date of this release.Ê 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 LaSalleâs expectations or results, or any change in events.

Note to Editors:

• Media contacts may listen only to the Jones Lang LaSalle first quarter results discussion at 9 a.m. EDT on May 3 with investors and market analysts by dialing +1 719 457 2634.

• A web cast of the conference call is available at http://www.videonewswire.com/JONES/050301

• A replay of the call may be accessed by dialing +1 719 457 0820 outside the United States and

  +1 888 203 1112 in the United States from noon EDT on May 3, 2001, through 5 p.m. on May 11, 2001.Ê The replay passcode is 488187.

   

  ###
  
  
  ©2001, 1999 Jones Lang LaSalle IP, Inc. All rights reserved.