Tejon Ranch Company and Rockefeller Group Development Corp. Start on 120,000-Square-Foot Industrial Building at Tejon Industrial Complex

Second Project for Joint Venture at Tejon Industrial Complex; Walls Now Tilted at Partners’ First Project, a 606,000-Square-Foot Warehouse Building also Under Construction

October 30, 2007 — Tejon Ranch Company (NYSE: TRC) and Rockefeller Group Development Corporation (Rockefeller Group) today announced the joint venture partners are commencing with construction of a second new building at Tejon Industrial Complex (TIC), the 1,450-acre master planned commercial development that anchors California’s central trade corridor.

The new building will be a 120,000-square-foot industrial facility designed to serve the needs of manufacturers and/or smaller warehouse operators. This will be the second active construction project for the partners at TIC, the first being a 606,000-square-foot warehouse building now under construction.

“The partnership between Tejon Ranch and Rockefeller Group is focused on delivering high quality, timely, and sustainable real estate solutions at Tejon Industrial Complex,” said Robert A. Stine, President and CEO of Tejon Ranch. “Our vision is to create a job-generating commerce center for Kern County at Tejon Industrial Complex that is capable of serving the current and future needs of California’s diversified business community. This new offering further addresses that vision.”

All offsite improvements for the new building are complete. Irvine-based architectural firm HPA is finalizing design plans, with construction set to begin by December 2007. The partners expect to deliver the completed building by September 2008. Whittier-based Oltmans Construction will oversee construction. This new building will be part of a 39-acre section of TIC known as The Campus, an area that will feature industrial buildings ranging in size from 20,000 to 150,000 square feet, perfect for businesses that need a smaller amount of space.

Construction is already well underway at the partnership’s 606,000-square-foot warehouse facility, with the recent tilt of the concrete walls moving the building past the half way mark to completion. This product will serve the needs of California’s warehouse and distribution center operators searching for large blocks of modern warehouse space. The partners expect the building will be complete and ready for occupancy by a tenant or multiple tenant users by January of 2008. HPA also designed this building; Fullmer Construction of Los Angeles will oversee construction.

“There are two distinct groups of potential space users we plan to serve with the new developments at Tejon Industrial Complex,” said Tom McCormick, SIOR, Rockefeller Group’s Senior Vice President of Development. “Our first project focused on developing a turnkey solution for warehouse and distribution operators seeking large blocks of modern space with expansive truck courts and excellent access to a regional transportation system. This second offering is focused on the needs of tenant users requiring less space for operations, including manufacturers, local distributors and related service operators. Our market analysis has shown a current demand for turnkey facilities ready for occupancy in both product types, motivating us to move forward with construction now to provide timely space options.”

According to the Colliers International brokerage team of Senior Vice Presidents Thomas Taylor and John DeGrinis, SIOR, retained by the joint venture to market available building space and land for development at TIC, market dynamics have created a demand for master planned projects like TIC that are outside the urban core and offer entitled land for new construction and future expansion.

“Conditions in the established industrial markets of the Los Angeles Basin have reached a critical impasse,” said DeGrinis. “Land prices in the now mature Inland Empire, San Gabriel Valley and Los Angeles area industrial markets continue to go up, available land supply for new construction goes down, and significant traffic problems have been developing for years. The San Fernando Valley submarket, the most logical draw for tenants to this new 120,000-square-foot building, has less than three percent vacancy and virtually no land available for new construction. For any of the manufacturers and operators in the San Fernando Valley looking to expand from existing, out-dated facilities in that area, Tejon is one of the most logical locations to consider now that Valencia is essentially built out or spoken for.”

The joint venture partners have also initiated the process to create a 500-acre Foreign Trade Zone (FTZ) overlay for TIC. When this process is complete, the pending FTZ will allow manufacturers and distributors to secure the many benefits associated with the streamlined movement, storage and use of imported goods and raw materials.

“The master plan for TIC addresses almost every critical issue of the industrial space users’ location decision,” said Barry Hibbard, vice president of commercial and industrial development with Tejon Ranch. “Today, it’s about logistics, labor and location. TIC provides inbound and outbound efficiencies for goods movement. The labor base of Kern County and the Bakersfield Region is deep and highly qualified to serve the needs of industrial space users.”

Tejon Industrial Complex already has to 2.5 million square feet of existing warehouse facilities where approximately 1,000 employees work, including IKEA's Western North American Distribution Center, Oneida Ltd’s West Coast Distribution Center and more than 60-acres of retail offerings, including: a Petro Travel Plaza, a Best Western Hotel, In-N-Out Burger, a free-standing Starbucks, Panda Express, McDonald’s, Wendy’s and Iron Skillet Restaurant.

The TIC site is located between the ports of Los Angeles and Oakland at the junction of Interstate Five and Highway 99, putting warehouse operators approximately 60 minutes north of Los Angeles and four hours south of Oakland, providing efficient access to the state’s two major port complexes for diversification and contingency. The site allows for efficient outbound, roundtrip delivery service to 96 percent of California’s population and parts of Nevada and Arizona within the current Federal driver hours of service limitations.

About Tejon Ranch Company (NYSE: TRC)
Tejon Ranch Company is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. For more information on the company, please go to www.tejonranch.com. For more information on Tejon Industrial Complex, visit www.tejonindustrialcomplex.com.

About Rockefeller Group Development Corporation (RGDC)
RGDC is a national owner, developer, and manager of prestigious commercial real estate properties.  Its development capabilities include corporate headquarters, landmark properties, multi-use urban complexes, multinational distribution facilities, suburban business parks, and foreign trade zones.  RGDC, with developments in New York, New Jersey, Florida, Arizona and California is an operating company of The Rockefeller Group, developer of the famed Rockefeller Center in New York City. For more information, visit www.rockefellergroup.com .

For more information, contact:

Tejon Ranch Co. (Corporate): Barry Zoeller (661) 248-3000

Rockefeller Group Development Corp.: Sandra Manley (212) 282-2000

Tejon Industrial Complex (Project): Chris Egger (310) 821-5300