Bedford Property Investors Declares $1.64 Per Share Special Dividend.

LAFAYETTE, Calif. -- Bedford Property Investors, Inc. (NYSE:BED) announced today that its board of directors has declared a special dividend of $1.64 per share. The dividend is payable January 17, 2006 to common shareholders of record on December 30, 2005. The special dividend is the result of taxable gains from the sales transactions of wholly owned assets during 2005.

Under the REIT provisions of the Internal Revenue Code, gains must be distributed in order for the Company not to incur corporate level taxes and to meet its REIT distribution requirement. The allocation of this special dividend and all the quarterly dividends declared during 2005 between ordinary income, taxable gain and section 1250 unrecapture gain will be published via a press release on or about January 10, 2006.

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. Its common stock is traded on the New York Stock Exchange and the Pacific Exchange under the symbol "BED," and its website address is www.bedfordproperty.com.