Boeing Exercises Year-End 2002 Lease Termination Option at Kilroy Airport Center - Seatac.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Jan. 8, 2002

Kilroy Realty Corporation (NYSE:KRC) today said the Boeing Corporation has exercised its option to terminate a lease for 211,000 square-feet at Kilroy Airport Center - Seatac, a 533,000 square-foot office property located adjacent to the Seattle-Tacoma International Airport.

The effective date of the lease termination is December 31, 2002. Boeing's Airplane-On-Ground Division that provides customer service and parts support has held the lease since 1997. The property is currently 100% leased.

Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for the company's current development program include Calabasas, West Los Angeles, El Segundo and coastal San Diego, where the company's total development pipeline is approximately $500 million. At September 30, 2001, the company owned 7.1 million square feet of commercial office space and 5.2 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.