$(catkin_LIBRARIES): no such files or directory

Hi, I've created 2 packages and catkin_make results in twice the error above. The only dependencies in both CMakeList.txt and packages.xml are rospy, roscpp and std_msgs which are there. In $ROS_PACKAGE_PATH, the ROS path is present, but not the path to my newly created packages. Is this a necessity? Any help or hints is appreciated. Thanks hvn