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Press Room Release

Kilroy Realty Corporation Declares Fourth Quarter Dividend

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LOS ANGELES, CA, December 10, 1998 – Kilroy Realty Corporation (NYSE: KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.405 per common share payable on January 8, 1999 to shareholders of record on December 31, 1998. The dividend is equivalent to an annual rate of $1.62 per share.

Kilroy Realty Corporation owns, operates and develops office and industrial properties, primarily in California. At September 30, 1998, the company owned 5.4 million square feet of commercial office space and 5.7 million square feet of industrial space.

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