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Kilroy Realty Corporation Announces Third Quarter Dividend

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LOS ANGELES, Sept. 6, 2001 -- Kilroy Realty Corporation (NYSE:KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.48 per common share payable on Oct. 17, 2001 to shareholders of record on Sept. 28, 2001. The dividend is equivalent to an annual rate of $1.92.

Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for the company's current development program include Calabasas, West Los Angeles, El Segundo and coastal San Diego, where the company's total development pipeline is approximately $500 million. At June 30, 2001, the company owned 7.2 million square feet of commercial office space and 5.6 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.

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CONTACT: Kilroy Realty Corporation, Los Angeles
         Tyler H. Rose, Senior Vice President
           and Treasurer
         (310) 563-5531