Bedford Property Investors Announces New Lease Transaction.

LAFAYETTE, Calif. -- Bedford Property Investors, Inc. (NYSE:BED) announced today the signing of a lease for 23,108 square feet at its 4601 DTC Boulevard property located in Denver, Colorado. The 7 year lease is with InsureWorx, Inc., a leading provider of modular browser-based software solutions for the insurance industry. The lease is expected to commence in the first quarter of 2006.

"We continue to be encouraged with the success of this property in attracting tenants of this caliber," said Peter B. Bedford Chairman of the Board and Chief Executive Officer. "Including this transaction, we have leased over 117,000 square feet bringing the property to 75% leased."

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 Stock Exchange and the Pacific Exchange under the symbol "BED" and its web site is www.bedfordproperty.com.

Please note: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs, including, among other things, the company's expectations regarding the commencement time of the lease. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to be materially different from those expressed, expected or implied by the forward-looking statements. The risks and uncertainties that could cause our actual results to differ from management's estimates and expectations are contained in the company's filings with the Securities and Exchange Commission, including its 2004 Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q. 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.