Bedford Property Investors, Inc. Prices $60 Million Preferred Offering.

Business Editors

LAFAYETTE, Calif.--(BUSINESS WIRE)--March 31, 2004

Bedford Property Investors, Inc. (NYSE:BED) today announced the pricing of its public offering of 2,400,000 shares of its 7.625% Series B Cumulative Redeemable Preferred Stock at $25 per share. Dividends on the Series B preferred stock are cumulative from the date of original issue and are payable quarterly in arrears, beginning on July 15, 2004. The Company may not redeem the Series B preferred stock before April 6, 2009, except under limited circumstances to preserve its status as a real estate investment trust. Beginning on April 6, 2009, the Company may redeem the Series B preferred stock, in whole or in part, for cash at $25 per share plus accrued and unpaid dividends, if any, to and including the redemption date. The Series B preferred stock has no maturity date and will remain outstanding indefinitely unless redeemed. The offering is expected to close on April 6, 2004, subject to customary closing conditions.

The offering was made through an underwriting syndicate led by Morgan Stanley & Co. Incorporated, as the sole book-running manager. Banc of America Securities LLC and RBC Dain Rauscher Inc. acted as co-managers. When available, a copy of the prospectus relating to the offering may be obtained by contacting Morgan Stanley, Attn: Prospectus Department, 1585 Broadway, New York, New York 10036 (tel: [phone]).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer, if at all, will be made only by means of a prospectus.

Bedford Property Investors is a self-administered equity real estate investment trust with investments in suburban office buildings and industrial properties concentrated in the western United States. It is traded on the New York Stock Exchange and the Pacific Exchange under the symbol "BED" and its website is www.bedfordproperty.com.

Please note that this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 that represent the Company's current expectations and beliefs, including the Company's intent to complete the offering described above. These forward-looking statements, however, are subject to certain risks and uncertainties that could cause the actual results to be materially different from those expressed in, or implied by, the forward-looking statements. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking information contained herein or elsewhere to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information.