AMB Investment Management L.P. Selected by Erie Insurance Group for Co-investment Agreement.

SAN FRANCISCO--(BUSINESS WIRE)--March 2, 1998--AMB Investment Management L.P. ("AMBIM") and Erie Insurance Group have executed a co-investment agreement for the acquisition and management of a portfolio of industrial properties and community shopping centers.

AMBIM is a subsidiary of AMB Property Corporation ("AMB"), a national industrial and retail operating company (NYSE:AMB), that ranks among the 15 largest public REITs in the country. AMBIM provides investment management services to institutional investors who choose to invest in the private market. Through this unique program, AMB intends to invest its own capital alongside AMBIM's investor clients. AMBIM manages approximately $500 million in privately owned real estate on behalf of institutional investors.

"We are pleased with this growth in our investment management business, which builds on our 15-year institutional investor track record," said Hamid Moghadam, AMB's President and CEO. "Our investment alliance with Erie is a significant step in the implementation of our program to provide the benefit of aligned interests with our investor clients as well as additional growth for our shareholders. As a result of this program, AMB has greater financial flexibility through its access to both public and private equity capital."

Doug Abbey, Chairman of AMBIM said, "We are excited to be investing with and on behalf of the Erie Insurance Group. Erie is one of the highest-rated insurance companies in the country, recently named by Fortune Magazine as one of the top companies to work for. When we made the strategic decision to continue to build our private investment management business, we focused on alliances with highly regarded firms like Erie, who in turn seek the benefits of co-investment with AMB Property Corporation."

AMB Property Corporation is a national real estate operating company focusing on industrial properties and community shopping centers. AMB owns and operates over 390 buildings totaling 44 million square feet located in 27 markets nationwide, including: Chicago, San Francisco Bay Area, Dallas/Ft. Worth, Los Angeles, Minneapolis, Atlanta, Seattle, Miami, Boston and Northern New Jersey. The Company completed an Initial Public Offering on November 21, 1997, and at year end had 88,416,676 share equivalents outstanding.

Forward-looking statements and comments in this press release are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934. Such statements relating to, among other things, events, conditions and financial trends that may affect the Company's future plans of operations, business strategy, growth of operations and financial position are not guarantees of future performance and are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks are discussed in the Company's Registration Statement on Form S-11, as amended, filed with the Securities and Exchange Commission and declared effective on November 20, 1997.

CONTACT: AMB Property Corporation

Jean Collier Hurley, 415/394-9000