Bedford Property Investors Secures $39,700,000 Mortgage Financing.

Business Editors

LAFAYETTE, Calif.--(BUSINESS WIRE)--Dec. 3, 2003

Bedford Property Investors, Inc. (NYSE:BED) today announced that it obtained $39,700,000 of new first mortgage financing from John Hancock Life Insurance Company.

The financing consists of six loans:

-- three 5-year loans aggregating $11,800,000 at a fixed-rate of

4.60%, which are collateralized by an office and two R & D

properties in Northern California, and two R & D properties in

Arizona, and

-- three 7-year loans aggregating $27,900,000 at a fixed rate of

4.95%, which are collateralized by two office and one R & D

properties in California.

Bedford Property Investors used the proceeds from the mortgage financing to pay down a portion of the outstanding balance of its revolving line of credit syndicated by Bank of America, which carries a variable rate. With this mortgage financing, Bedford Property Investors has completed a total of $137,700,000 of fixed-rate mortgage financing this year at a weighted average interest rate of 5.43%, currently reducing its variable-rate debt to 21% of its total debt.

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.