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Press Room Release

Kilroy Realty Corporation Declares Third Quarter Dividend

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

LOS ANGELES, CA, September 12, 1997 - Kilroy Realty Corporation (NYSE: KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.3875 per share payable on October 10, 1997 to shareholders of record on September 30, 1997. The dividend is equivalent to an annual rate of $1.55 per share.

Kilroy Realty Corporation owns, operates and develops office and industrial properties, primarily in California. At June 30, 1997, the company owned 2.7 million square feet of commercial office space and 2.5 million square feet of industrial space.

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