News RELEASE

KBS Promotes Executive to Key Management Positions

Newport Beach, CA, March 5, 2002: Effective March 1, 2002, Koll Bren Schreiber Realty Advisors (KBS) has modified its real estate operations to manage its acquisitions, dispositions and management of operating real estate assets on a regional basis.

“We will no longer operate with portfolio managers but are assigning regional responsibilities to the new position of Regional President,” said KBS CEO, Charles J. Schreiber Jr. “Our three Regional Presidents will not only direct asset management, but will also be highly influential in the investment strategies within their regions and the identification of markets for investment opportunities.”

KBS modified its asset management roles to a regional focus in the summer of 2000. Since that time, KBS has experienced improvements in its real estate operations despite the difficult market of the last 12 months. “A perfect example is the leasing performance within our properties in suburban Houston,” commented Schreiber. “We currently own over 3.5 million square feet of the suburban office market in Houston. Last year we successfully negotiated leases which provided KBS with positive net absorption exceeding the total suburban net absorption in Houston during 2001. Much of this success can be attributed to reorganizations in our asset management team.”

In their new roles Bill Milligan will become the Regional President for the Western U.S.; Ken McKay, Regional President for the Central U.S.; and Chuck Lindwall, Regional President for Eastern U.S. The acquisition, disposition and asset management teams will also follow regional assignments and report directly to the Regional Presidents. Steve Jarecki is promoted to Director of Acquisitions for the Western U.S.; Bob Peterson will be Director of Acquisitions for the Central U.S.; and Bob Provost will be Director of Acquisitions, for the Eastern U.S. Portfolio analysis and performance will be coordinated by Lori Lewis and Chuck Schreiber. Lori has been promoted to the position of Director of Portfolio Operations.

Headquartered in Newport Beach, CA, KBS Realty Advisors is a premier investment management firm specializing in real estate investments on behalf of select private and public pension fund, endowment and foundation partners. Founded in 1992, KBS has invested in excess of $4.5 billion on behalf of its clients. KBS specializes in purchasing and repositioning under-performing real estate and real-estate related assets in the United States.