News RELEASE

KBS Liquidates Sixth Fund

Newport Beach, CA, March 14, 2003: KBS Realty Advisors recently liquidated SM Brell I, the firm’s sixth real estate investment fund, which originated in May 1996 with investment capital of $166.06 million. SM Brell I was invested, managed and liquidated within a seven-year period, generating an unleveraged IRR of 19.02%, before fees (16.65% after fees). The fund returned a total of $251.7 million to the investor.

“The fund strategy was to maximize cash flow in a short period of time and sell each project according to the return objectives established in our initial underwriting,” commented KBS CEO, Charles J. Schreiber, Jr. “Only high quality assets with substantial upside opportunities were acquired. Our Asset Management group was aggressive in making necessary capital improvements and securing leases; they did an outstanding job of maximizing the income and value potential of this fund.”

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.