TEJON RANCH TO SERVE AS THE HUB OF DOLLAR GENERAL’S WESTERN SUPPLY CHAIN

Dollar General leases large warehouse facility to serve as its California distribution center

TEJON RANCH, Calif. (January 10, 2012) – The partnership of Tejon Ranch Company (NYSE: TRC) and Rockefeller Group Development Corporation, together with Dollar General Corporation (NYSE: DG), today announced the discount retailer is leasing 439,000 square feet of warehouse space in the building the partnership owns at the Tejon Ranch Commerce Center. Dollar General will use the facility to support its expansion into California.

“The Tejon Ranch distribution center is strategically located to serve our supply chain needs as we continue to expand westward,” said John Flanigan, Dollar General’s executive vice president of global supply chain. “From its central location, our supply chain team can deliver goods to stores in northern and southern California in a day.”

Dollar General currently has more than 9,800 stores in 38 states. The discount retailer is adding California as its 39th state and plans to open 50 stores throughout the state in 2012. The distribution center at the Tejon Ranch Commerce Center will be the company’s 11th distribution center in its extensive, cross-country supply chain network. The new facility, which is anticipated to begin operations in April, will eventually employ approximately 250 people. Hiring begins in March.

The Tejon Ranch Commerce Center is Tejon Ranch Company’s 1,450-acre master planned commercial/industrial development located at the junction of Interstate 5 and Highway 99, at the southern end of California’s San Joaquin Valley – the gateway to Central California’s Golden Empire. The Commerce Center is already home to major distribution centers for IKEA and Famous Footwear and last month, Caterpillar Inc. (NYSE: CAT), announced it was purchasing 46 acres at the site to build a 400,000-square-foot parts distribution facility.

“We are excited to welcome Dollar General to the Tejon Ranch Commerce Center,” said Robert A. Stine, president and CEO of Tejon Ranch Company. “Following on the heels of the Caterpillar transaction, Dollar General’s decision to locate here is further validation of the Commerce Center’s premier status as one of California’s best and most strategic locations for distribution.”

“The Rockefeller Group would also like to welcome Dollar General to the Tejon Ranch Commerce Center,” said Tom McCormick, senior vice president for Rockefeller Group Development Corporation. “We see signs that consumer confidence is increasing and that will buoy the industrial market as goods begin to move. Dollar General will be strategically positioned to take advantage of that confidence.”

Tejon Ranch Company and Rockefeller are joint venture partners on up to 500 acres within the Commerce Center, including the warehouse facility being leased by Dollar General. The building already has an existing tenant who will share use of the facility with Dollar General. The acreage has also been designated as a Foreign Trade Zone.

The Tejon Ranch Company/Rockefeller partnership was represented in the transaction by Doug Sonderegger, Executive Vice President of CBRE. Dollar General Corporation was represented by Joseph J. Howell and Brett B. Spitzer, Executive Vice Presidents of NAI Global, and Chad Brock, President of NAI Central Cal. The Kern Economic Development Corporation also assisted Dollar General and provided important information during its site selection process.

New 400,000 SF California Distribution Center will serve Caterpillar dealers and customers throughout the West.

TEJON RANCH, Calif. (November 7, 2011) – Tejon Ranch Co. (NYSE: TRC) announced today that Caterpillar Logistics Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT), is purchasing 46 acres of land within the Tejon Ranch Commerce Center to construct a 400,000-square-foot parts distribution facility that will serve Caterpillar dealers and customers throughout California and the western United States.

“We’re pleased to welcome Caterpillar Inc. to the Tejon Ranch Commerce Center,” said Robert A. Stine, President and CEO of Tejon Ranch Co. “Caterpillar is an industry leader, and as such, will be in good company, joining the ranks of other world-class companies, like IKEA and Famous Footwear, who have located major distribution facilities at Tejon.”

“With its excellent accessibility to major highways and airports, this location will ensure the rapid delivery of Cat parts to dealers and customers,” explained Steve Larson, Vice President of Caterpillar Inc. and Chairman and President of Cat Logistics.

Located at the junction of Interstate 5 and Highway 99 in Central California, the Tejon Ranch Commerce Center is one of California’s leading logistics centers. Covering 1,450 acres, this signature commercial/industrial development is already home to three million square feet of existing warehouse facilities and approximately 1,000 employees.

Caterpillar, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, selected the Tejon Ranch
Commerce Center after a thorough review of potential sites throughout California and the western United States. Caterpillar ultimately determined Kern County – California’s Golden Empire – was the best location to meet its parts distribution needs, and the Tejon Ranch Commerce Center was best-suited to serve as its specific base of operations.

“Given its central location within California, Kern County’s Golden Empire is becoming a vital part of the goods movement industry,” said Joseph E. Drew, Tejon Ranch’s Senior Vice President of Real Estate. “With its proven logistical advantages, we believe the Tejon Ranch Commerce Center is the area’s best location, and that it will continue to play a leading role in the growth of the logistics industry within the Golden Empire.”

“By design, and by virtue of its strategic location, the Tejon Ranch Commerce Center provides clear advantages when it comes to the most important factors companies use in determining where to locate a distribution facility,” said Hugh F. McMahon IV, Vice President of Commercial and Industrial Real Estate at Tejon Ranch Co. “Tejon offers significant cost savings over competing locations. Our centralized location results in superior transportation efficiencies for distribution throughout California and the western United States. The labor pool is deep and highly qualified and employees have been proven to be productive and loyal. Further, the Commerce Center offers fully entitled land sites ready for immediate development, with ample room for future expansion.”

The new Caterpillar facility is scheduled to be operational in late 2012 and is expected to employ up to 150 people.

The Kern Economic Development Corporation played an important role in the site selection process, providing Caterpillar and its consultants with information regarding the benefits of locating in the Golden Empire, and connecting them with key County department heads who explained the ease of the permitting process in Kern County.

CBRE represented both parties in the transaction with Traci Buckingham representing Caterpillar Inc. and Doug Sonderegger representing Tejon Ranch Co.
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TEJON RANCH, CA.—Construction is moving forward on a 350,000-sf warehouse-distribution facility at the 1,450-acre Tejon Industrial Complex that will house Famous Footwear, a retail division of Brown Shoe Co. Located within a new 177- acre Foreign Trade Zone, the facility is expected to be operational in mid-2009.

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The new building, where Hugh is in active negotiations with a confection company, reflects the enhanced array of retail offerings at the Commerce Center—1,450 acres straddling I-5 just past the base of the Grapevine. Del Taco is under construction and should open in time for Labor Day, and a new Subway is going in on the west side of the freeway in one of the gas station “C” (convenience) stores. Also under construction: a 63-room Microtel, which will join an existing Best Western.

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The designation is an expansion of the existing foreign trade zone granted to the Board of Harbor Commissioners of the City of Los Angeles.

“We think that it gives Tejon Industrial Complex a real competitive advantage, and that’s a real advantage for the county because it’s been a real job producer,” said Barry Zoeller, a spokesman for Tejon Ranch Co., the complex’s developer.

Swedish-based furniture retailer IKEA, which has a 1.7 million-square-foot distribution facility at Tejon Industrial Complex, became a subzone of the Los Angeles port’s foreign trade area last year.

Eventually, as many as 500 acres of the industrial park near the foot of the Grapevine may gain the foreign trade zone designation, Zoeller said.

About 1,000 people are employed at the complex, according to a Tejon Ranch Co. news release.

The complex has 3.1 million square feet of warehouse space.

Tenants within the complex’s foreign trade zone would have to activate the designation, as IKEA has done, to access its benefits, Zoeller said.

That process involves approval from U.S. Customs and Border Protection, according to the U.S. Foreign Trade Zones Board Web site.

Brown said. Foreign trade zones are especially attractive to manufacturing and distribution facilities, she said.

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