HRPT to Purchase Campbell Industrial Park Lands in Hawaii for $115.5 Million.

NEWTON, Mass. -- HRPT Properties Trust (NYSE: HRP) today announced that it has entered into an agreement to purchase industrial lands in Oahu, Hawaii for $115.5 million from the Estate of James Campbell and its affiliates.

The lands to be acquired by HRPT consist of 8,179,942 million sq. ft. (188 acres) of land that is located on the southwest coast of Oahu, about 20 miles from downtown Honolulu. These lands are part of the James Campbell Industrial Park, which is the largest industrial park in the State of Hawaii. The property being acquired by HRPT includes the declarant position for the entire James Campbell Industrial Park, which may permit HRPT to control various aspects of the future development of that park including various private roads and easements.

The Campbell lands which HRPT will acquire contain 41 parcels that are currently 95% leased to 60 tenants (under 68 separate leases) for an average remaining lease term (based upon annualized rents) of approximately 15 years. All of the tenants pay triple net rents, and the tenants are generally responsible for all land operating costs and liabilities, including environmental liabilities. The majority of the land leases also provide that rents are periodically reset to market rates, usually every 5 to 10 years, on an upwards only basis. HRPT's estimated current annual net operating income from the Campbell lands which it will acquire is approximately $8.7 million.

The two largest tenants of the Campbell lands which HRPT will acquire are affiliates of Tesoro Corporation, a publicly-traded independent petroleum company, and AES Corporation, a publicly-traded electric power generation company. These two tenants represent a combined 51% of the annual rents from these lands.

The purchase of the Campbell lands is expected to occur sometime before year end 2005. HRPT has completed its diligence and both HRPT and Campbell have entered into a binding agreement with closing expected between June and December 2005. HRPT expects to fund this acquisition using cash on hand and drawings under its $750 million unsecured revolving credit facility.

HRPT will acquire these Campbell lands free and clear of mortgage debts. Most of the tenants on these lands have developed buildings and businesses on their leaseholds, and some tenants have borrowed money secured by their leasehold interests. All of the tenant leasehold mortgages will be subordinated to HRPT's land ownership.

Upon closing of the purchase, HRPT will become one of the largest industrial land owners in Hawaii. Combined with HRPT's existing land holdings, HRPT will own close to 18 million sq. ft. (412 acres) of industrial lands in Oahu, Hawaii. As a result, HRPT will be able offer tenants a wide selection of leasing options at multiple locations throughout Oahu.

HRPT's business plan for the lands it will acquire from Campbell is to increase the future cash flows from the properties by working with existing tenants to offer extended lease terms in return for rental adjustments. If acceptable arrangements are not agreed with existing tenants and as leases expire, HRPT then expects to offer various parcels for lease, sale or redevelopment for their highest and best uses.

HRPT is also optimistic about the future value of the lands it will acquire from Campbell because of their locations and the limited supply of industrial lands on Oahu. These lands are in the vicinity of Barbers Point Harbor, the State of Hawaii's second busiest commercial harbor, and are located in the City of Kapolei, one of the fastest growing communities in Hawaii.

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States as well as commercial and industrial lands located in Oahu, Hawaii. HRPT is headquartered in Newton, Massachusetts.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT, FOR MANY DIFFERENT REASONS, THESE FORWARD LOOKING STATEMENTS MAY NOT OCCUR. FOR EXAMPLE:

--THIS PRESS RELEASE STATES THAT HRPT HAS COMPLETED ITS DILIGENCE AND THAT BOTH HRPT AND THE CAMPBELL ESTATE HAVE ENTERED INTO A BINDING AGREEMENT, AND THAT THE CLOSING IS EXPECTED BEFORE YEAR END 2005. WHENEVER A CLOSING IS DELAYED, CHANGES IN CIRCUMSTANCES MAY CAUSE A TRANSACTION TO FAIL. FOR EXAMPLE, HRPT WILL REQUIRE UPDATES OF VARIOUS DILIGENCE ITEMS IF THIS CLOSING IS DELAYED FOR MORE THAN A SHORT PERIOD, AND THOSE UPDATES MAY CAUSE THE TRANSACTION TO FAIL TO CLOSE.

--THIS PRESS RELEASE STATES THAT HRPT'S ESTIMATE OF CURRENT ANNUAL NET OPERATING INCOME FROM THE CAMPBELL LANDS WHICH IT WILL ACQUIRE IS APPROXIMATELY $8.7 MILLION. THIS ESTIMATE IS BASED UPON CERTAIN ASSUMPTIONS ABOUT RENTAL INCOME AND EXPENSES WHICH MAY PROVE INACCURATE. FOR EXAMPLE, SOME TENANTS MAY DEFAULT THEIR RENTS OR FAIL TO RENEW THEIR LEASES. ALSO, HRPT'S ESTIMATE OF THE EXPENSES IT WILL INCUR FOR MAINTAINING CERTAIN COMMON ROADWAYS OR FOR MANAGING THESE LAND HOLDINGS MAY BE INACCURATE. ACCORDINGLY, THE NET OPERATING INCOME WHICH HRPT MAY RECEIVE AFTER THIS PURCHASE CLOSES MAY BE MATERIALLY LESS THAN THE ESTIMATED AMOUNT.

--THIS PRESS RELEASE DESCRIBES HRPT'S BUSINESS PLAN TO INCREASE THE CASH FLOWS WHICH IT MAY REALIZE FROM THE LANDS IT EXPECTS TO ACQUIRE FROM THE CAMPBELL ESTATE. THERE CAN BE NO ASSURANCE THAT THIS BUSINESS PLAN WILL SUCCEED IN INCREASING HRPT'S CASH FLOWS. EXISTING LAND TENANTS MAY BE UNWILLING TO EXTEND THEIR LEASE TERMS OR TO INCREASE THEIR RENTS AND/OR HRPT MAY BE UNABLE TO FIND NEW TENANTS. IN ADDITION, CHANGES IN THE LOCAL ECONOMY MAY NEGATIVELY EFFECT HRPT'S ABILITY TO NEGOTIATE WITH TENANTS. FOR THESE AND OTHER REASONS HRPT'S FUTURE CASH FLOWS MAY DECLINE.

--THIS PRESS RELEASE STATES THAT HRPT IS OPTIMISTIC ABOUT THE FUTURE VALUE OF THE LANDS IT WILL ACQUIRE BECAUSE OF THEIR LOCATIONS AND THE LIMITED SUPPLY OF INDUSTRIAL LANDS ON OAHU. THIS STATEMENT IMPLIES THAT HRPT EXPECTS THE VALUE OF THE LANDS IT WILL ACQUIRE TO INCREASE IN THE FUTURE. THE CONTINUED EXPANSION OF THE BARBERS POINT HARBOR AND THE CITY OF KAPOLEI ARE LARGELY DEPENDENT UPON FUTURE IMPROVEMENTS IN THE ECONOMY OF OAHU, HAWAII, A FACTOR WHICH IS BEYOND HRPT'S CONTROL OR ITS ABILITY TO DEFINITELY PREDICT. THE CURRENT SUPPLY OF INDUSTRIAL LANDS ON OAHU MAY BE INCREASED BY THE DECISIONS OF ZONING AUTHORITIES AND OTHER LAND OWNERS TO CONVERT LANDS TO INDUSTRIAL USES. CHANGES IN GOVERNMENT REGULATIONS REGARDING THE USE OF THE LANDS TO BE ACQUIRED BY HRPT MAY ALSO CHANGE THE PERMITTED USES OF THESE LANDS IN THE FUTURE. THESE ACTIONS ARE BEYOND HRPT'S CONTROL. ANY INCREASE IN THE SUPPLY OF INDUSTRIAL LANDS ON OAHU OR CHANGE IN GOVERNMENT REGULATION MAY REDUCE THE VALUE OF LANDS HRPT EXPECTS TO PURCHASE OR SLOW THEIR APPRECIATION.

INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.