BRE Properties Announces Strategic Reorganization.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 24, 1999--BRE Properties, Inc. (NYSE:BRE) today announced strategic actions designed to streamline the organization, bring management closer to associates and make the property acquisitions process more efficient.

Having accomplished all the objectives of the 1996 merger of BRE Properties and Real Estate Investment Trust of California (RCT), Chief Operating Officer Jay W. Pauly will leave BRE. "Significant benefits of our merger with RCT included the internalization of property management, the integration of a large portfolio of apartment properties, and the sale and redeployment of non-core assets," said Frank McDowell, BRE's president and CEO. "Jay not only took a leading role in the accomplishment of those objectives, he was highly instrumental in the integration of our 1997 merger with Trammell Crow Residential-West. He leaves BRE with our sincere thanks and can be secure in the knowledge that he helped create significant shareholder value."

Operating responsibility will be assumed directly by Frank McDowell. John L. Nunn, senior vice president of property operations, was promoted to executive vice president and will report directly to McDowell. "Over the last three years, John built the teams and systems that seamlessly transitioned the company from external management of about 5,000 apartments to internal management of more than 20,000 apartments in 12 metros of the West," said McDowell. "During that time, John and his teams produced industry-leading growth rates in same-store net operating income--12% in each of the last two years."

Nunn has 19 years of property management experience. He holds the Certified Property Manager designation from the Institute of Real Estate Management and is a 1981 graduate of Long Beach State University.

BRE also reorganized its acquisition function. All acquisition staff based in the corporate office will be departing from the company, including Executive Vice President Byron M. Fox. "The current lack of attractive acquisitions opportunities makes this a good time for me to pursue other interests," said Fox. "Byron has been a team player in this company for 10 years," said McDowell. "We thank him for his contributions and know he'll be successful in his future endeavors."

In the foreseeable future, BRE's external growth will be focused primarily on development of its Pinnacle brand apartment communities. Attractive acquisitions of existing assets, when available, will be identified and underwritten at the local level by the managing directors in BRE's regional development offices: E. Garth Erdossy, San Diego; William Reed, San Francisco; Andrew Colquitt, Seattle; Jeffrey Duke, Salt Lake City; Chris Gillies, Denver; Nick Chapman, Sacramento; and Robert Hutt, Phoenix.

BRE Properties, Inc. is a self-administered, self-managed and fully integrated real estate investment trust focusing on the development, acquisition, ownership and management of multifamily properties in the Western United States. BRE owns and operates 85 apartment communities totaling 21,858 units in California, Arizona, Washington, Oregon, Nevada, New Mexico, Utah and Colorado. The company currently has six other apartment communities under development totaling 1,539 units. Additional information about BRE can be found on the company's web site (www.breproperties.com).