JONES LANG LASALLE REPORTS FIRST QUARTER RESULTS IN LINE WITH EXPECTATIONS

Chicago and London, May 1, 2002 – Jones Lang LaSalle Incorporated (NYSE: JLL), the leading global real estate services and investment management firm, today reported a net loss of $4.9 million, or ($0.16) per share, for the first quarter ended March 31, 2002, compared with an adjusted net loss of $2.9 million, or ($0.10) cents per share, in 2001. These results, which exceeded First Call consensus estimates by one cent, were achieved through management’s actions taken late last year to reduce costs significantly in an uncertain economy. The firm reported a 17 percent reduction in operating expenses to $165.9 million. Revenues were $161.8 million compared with $198.8 million a year ago.

Results Highlights

First quarter results in line with expectations
Operating expenses decrease 17 percent from 2001
Debt reduced $62.5 million from prior year

“We are pleased to report first quarter results that were on par with our expectations. These results confirm the importance of the expense reduction program that we initiated in the fourth quarter to secure our business during a period of reduced client activity in an uncertain economy,” said Chris Peacock, President and Chief Executive Officer of Jones Lang LaSalle. “We also continued to improve our balance sheet with a $62.5 million reduction in debt quarter over quarter.”

The first quarter 2002 net loss does not include the cumulative benefit of $0.8 million, or $.03 per share, for adoption of the SFAS 142 accounting standard. In the first quarter of 2001, the comparable adjusted result excluded a $1.1 million non-operational, non-recurring charge for the writedown of a broadband investment. Jones Lang LaSalle reported a GAAP net loss of $4.0 million, or $0.13 per share, for the 2002 first quarter compared with a GAAP net loss of $3.5 million, or $0.12 per share, in the prior year.

Business Segment Performance Highlights

The following summary of business segment results compares the first quarter of 2002 to the prior year period.

Owner & Occupier Services

The Americas region reported revenues of $52.3 million as compared with $61.0 million the previous year. This expected decline resulted from continued slow transaction business due to the economy and followed a strong first quarter in 2001. The region achieved solid cost reductions in the first quarter, reporting a net operating loss of $2.1 million compared with the prior-year loss of $10.7 million.
Europe continued to feel the effects of the recession that began to have an impact on its businesses late in 2001. First quarter revenues of $64.3 million were 25 percent lower than in 2001, reflecting a significant downturn in transactions in the key markets of the UK, France and Germany. Offsetting this performance was overall cost reduction of $13 million in the quarter, resulting in operating income of $0.3 million versus $8.6 million last year.
In Asia Pacific, operating results were basically flat year over year due to both cost containment initiatives and benefits from the business realignment introduced last year to better serve clients. Revenues were $26.2 million, a $1.7 million decline from the first quarter a year ago. Transaction activity remained weak in Southeast Asia and Australia, but was offset by revenue improvements in Northern Asia.

Investment Management

LaSalle Investment Management reported first-quarter operating income of $0.8 million, down $4 million from the previous year. The reduction in operating income was driven by last year’s gain from the firm’s disposition of its investment in LaSalle Hotel Properties. Revenues declined to $19.1 million compared with $24.5 million in 2001.

Outlook for Remainder of 2002

“While the economy appears headed in the right direction, real estate markets typically lag the overall economy by six to nine months. We continue to win strategic alliances and build a backlog of major global, regional and local assignments. For example, one very significant competitive win for the firm was announced just this week, when Deutsche Bank selected us as its real estate services partner for transaction activities in Europe, the Middle East and Africa,” said Mr. Peacock. “In the meantime, we are benefiting from ongoing expense reductions.”

Management’s guidance for the second quarter and the remainder of the year reflects caution about the economy and its impact on revenues. “We expect second-quarter results to show a small EPS profit in the range of $0.05-$0.15, and we are holding to our full-year earnings target range of $1.65-$1.70 per fully diluted share. But we expect to be toward the lower end of the range if the recovery is weak or extensively delayed,” said Lauralee Martin, Chief Financial Officer. “The full-year target includes a $0.25 benefit from the SFAS 142 goodwill accounting change.”

About Jones Lang LaSalle

Jones Lang LaSalle is the world’s leading real estate services and investment management firm, operating across more than 100 markets on five continents. 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 725 million square feet (67 million square meters) under management worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse real estate investment management firms, with in excess of $22 billion of assets under management.

Download First Quarter 2002 - 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. 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 Jones Lang LaSalle’s Annual Report on Form 10-K for the year ended December 31, 2001, in Jones Lang LaSalle’s Proxy Statement dated April 4, 2002, 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.

Note to Editors:

Media contacts may listen only to the Jones Lang LaSalle first quarter results discussion at 9 a.m. EDT on May 2 with investors and market analysts by dialing +1 719 457 2684.
A web cast of the conference call is available at http://www.videonewswire.com/event.asp?id=4537
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 2, 2002, through midnight (EDT) on May 11, 2002. The replay passcode is 768907.

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