News RELEASE

KBS Fully Liquidates Third Investment Fund Generating 21.13% Unleveraged IRR

Newport Beach, CA, July 15, 2002: Koll Bren Schreiber Realty Advisors (KBS) recently liquidated K/B Fund III, a commingled real estate fund which produced a 21.13% overall unleveraged IRR, before fees (18.87% after fees). The fund contained U.S. operating real estate assets and real estate debt obligations. Eleven institutional investors participated in the fund.

“We take a lot of pride in knowing that over the last six-and-a-half years, we have been successful in carrying out the investment strategy that was set forth in the initial underwriting of this Fund,” commented KBS CEO, Charles J. Schreiber Jr. The successful closing of K/B Fund III marks the third fund overall that KBS has liquidated on behalf of its investors. A fourth K/B commingled fund has one remaining asset and is scheduled to be fully liquidated within the next six months.

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.