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Press Room Release

Kilroy Realty Corporation Declares Fourth Quarter Dividend

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

LOS ANGELES, CA, December 16, 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 January 9, 1998 to shareholders of record on December 31, 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 November 30, 1997, the company owned 3.7 million square feet of commercial office space and 4.8 million square feet of industrial space.

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