Bedford Property Investors Announces Acquisitions.

LAFAYETTE, Calif.--(BUSINESS WIRE)--March 31, 1998--Bedford Property Investors Inc. (NYSE:BED) announced today that they have recently purchased two buildings; one is located in San Diego, Calif., the other in Scottsdale, Ariz.

In San Diego, BPI purchased a 20,771 sq. ft. R&D building for $2,150,000 or $103.51 PSF; the building is leased under a long term agreement to Applied Micro Circuits Corporation (NASDAQ:AMCC), and is fully built-out with office and clean room facilities.

The project is 100% leased, with an initial in-going yield on the acquisition of 9%, after allowing for vacancy, credit loss, and deferred maintenance. The building is located in the Sorrento Mesa area adjacent to Interstate 805.

In Scottsdale, BPI closed on the Cimarron Business Park, a five building, 94,800 sq. ft., light industrial complex; the property is 100% occupied. The purchase price was $6,150,000, or $64.87 PSF with an initial in-going yield on the acquisition of 9%, also after allowing for vacancy, credit loss, and deferred maintenance. The property is located adjacent to the Scottsdale airport in suburban Phoenix.

"We are continuing with our strategy of identifying `one off' asset purchases that have good initial cash flow with excellent upside potential due to under market rents, that can be acquired at less than replacement value," stated Peter B. Bedford, Chairman of the Board of Bedford Property Investors.

BPI has closed on $74.6MM in acquisitions year to date.

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

CONTACT: Bedford Property Investors

Peter B. Bedford or Robert Pester, 925/283-8910