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Kilroy Realty Enters into Agreement to Purchase 25 Acre Site in Northern San Diego County Submarket of Carlsbad

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LOS ANGELES--(BUSINESS WIRE)--Dec. 12, 2005--Kilroy Realty Corporation (NYSE:KRC) announced today it is under contract to purchase a 25 acre land parcel in the northern San Diego County submarket of Carlsbad, California. Following the closing of the transaction, which is expected to occur in the second half of 2006, the company plans to develop between 250,000 square feet and 350,000 square feet of office space on the site for a total estimated investment of approximately $75 million to $90 million.

The site, Carlsbad Oaks North, is located on Faraday Avenue, north of Palomar Airport Road in the city of Carlsbad, which is an emerging submarket in north San Diego County. Its well-planned transportation infrastructure, master-planned residential communities and top performing education institutions have attracted a diversified and growing business base of defense, life science, technology, recreation and service firms such as Invitrogen, K2, Isis Pharmaceutical, Ashworth, and ViaSat.

The planned acquisition continues Kilroy Realty's growth in San Diego and adds to the company's significant San Diego development pipeline, which now includes the potential to build approximately two million square feet of office space in addition to the 644,000 square feet of leased office product the company currently has under construction or committed.

Some of the information presented in this release is forward looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty's expectations are set forth as risk factors in the company's Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; Kilroy Realty's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs, including utility costs; fluctuations in the company's share price and the resulting impact on general and administrative costs; future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget; the demand for office space in markets in which Kilroy Realty has a presence; and risks detailed from time to time in the company's SEC reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, 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. Kilroy Realty currently has an in-process development pipeline of approximately 644,000 square feet of office space in San Diego County. At September 30, 2005, the company owned 7.8 million rentable square feet of commercial office space and 4.7 million rentable square feet of industrial space. More information is available at

Kilroy Realty Corporation
Richard E. Moran Jr., 310-481-8483
Tyler H. Rose, 310-481-8484

Kilroy Realty Corporation