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Press Room Release

Kilroy Realty Corporation Declares Second Quarter Dividend

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

LOS ANGELES, CA, June 1, 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 July 10, 1998 to shareholders of record on June 30, 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 March 31, 1998, the company owned 4.9 million square feet of commercial office space and 5.5 million square feet of industrial space.

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