News RELEASE

ARES Corporation Leases Full Building at Armand Plaza in Clear Lake

Clear Lake, TX -- December 11, 2003: ARES Corporation (www.arescorporation.com) has recently signed a 16,000 sq. ft. lease for Building A at Armand Plaza in Clear Lake, TX. ARES, a leading project management and engineering solutions provider, was recently awarded a NASA contract with a potential value of $178 million for services that will be provided for the International Space Station Program. Armand Plaza is a four-building 64,000 sq. ft. office complex owned by real estate investment advisory firm, KBS Realty Advisors (www.kbsrealty.com). The property is conveniently located in the NASA/Clear Lake submarket. Other noteworthy tenants at the property include Boeing and Maverick Technologies.

The lease transaction was negotiated on behalf of the landlord, by Mike Adams of PM Realty Group (www.pmrealtygroup.com). The tenant was represented by Bob Zannelli of Zann Commercial Brokerage (www.zann.com).

ARES Corporation provides risk management, project management and engineering solutions and products to government contractors and agencies - DOE, DOD, NASA, and Aerospace and Fortune 1000 companies. ARES was previously selected as the United Space Alliance's 1999 Small Business Subcontractor of the year and during 2000 received the Administrator's Award of Excellence from the U.S. Small Business Administration. ARES has offices in Burlingame and Lafayette California, Richland Washington, Albuquerque and Los Alamos New Mexico, Houston Texas, and Alexandria Virginia.

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.