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Press Room Release

Kilroy Realty Corporation Increases Quarterly Dividend 3.7%

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LOS ANGELES, CA, February 18, 1999 – Kilroy Realty Corporation (NYSE: KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.42 per common share payable on April 9, 1999 to shareholders of record on March 31, 1999. The dividend is equivalent to an annual rate of $1.68 per share and is a 3.7% increase from the previous annualized dividend level of $1.62.

Kilroy Realty Corporation owns, operates and develops office and industrial properties, primarily in California. At December 31, 1998, the company owned 5.6 million square feet of commercial office space and 6.2 million square feet of industrial space.

Tyler H. Rose
Senior Vice President
and Treasurer
(310) 563-5531