PRESS RELEASES

Hines Announces The Acquisition Of 1100 Louisiana In Houston, Texas

Transaction Marks Seventh Acquisition for Hines/CalPERS Joint Venture

1/11/2000

HOUSTON, TEXAS - Hines, the international real estate firm, announced today that on behalf of the National Office Partners Limited Partnership, a joint venture between the California Public Employees´ Retirement System (CalPERS) and Hines, it has acquired 1100 Louisiana in downtown Houston, Texas. The property was purchased from Capital Guidance Associates IV, an affiliate of Capital Guidance Corporation, an international private investment firm.

1100 Louisiana is a 1,300,000-square-foot, 55-story office building centrally located in downtown Houston. The building is currently 97% leased to 110 tenants including PG&E, Equiva and Price Waterhouse Coopers. The property also includes 36,000 square feet of retail space and a 1,500-space parking garage. Hines developed 1100 Louisiana in 1980 and sold the building to Capital Guidance Associates IV in 1985. Hines has continually managed and leased the building for 20 years and will continue in this capacity.

The building architect was Skidmore, Owings & Merrill of San Francisco. " Our commitment to timeless architecture and careful management was proven - it provided a building with lasting value," said Charlie Baughn, Hines senior vice president in the Southwest region. " We are excited about the resurgence of downtown Houston, and the opportunity to re-invest in 1100 Louisiana."

National Office Partners was formed in July 1998 to maximize the value of a portion of CalPERS´ existing office portfolio as well as to add new investments to the portfolio through acquisition and development. The venture aligns the interests of CalPERS as investor and Hines as managing partner through a partnership structure that includes performance-based incentives and co-investment by Hines. Hines has investment discretion over acquisitions, developments, dispositions and asset management based on annual investment and strategic plans approved by CalPERS. This discretion enables Hines to make rapid and definitive investment decisions.

1100 Louisiana is the seventh office building acquisition made by National Office Partners during the 18 months since it was formed, representing over $600 million of new investments. The acquisition brings the portfolio size to 8.0 million square feet in 23 buildings across the United States, totaling over $1.5 billion in value. In addition, National Office Partners has invested in two speculative development projects, raised approximately $300 million of new debt, and sold four projects with an aggregate value of $150 million.

Capital Guidance Corporation is a diversified private investment firm headquartered in Geneva, Switzerland. Its holdings include real estate, operating companies, buy-out and venture capital funds, and marketable securities. The company's U.S. real estate activities include commercial property and land developments. Capital Guidance is also the majority owner of Madison Marquette Realty, a prominent developer of specialty and lifestyle retail properties, and manager of more than 20 million square feet of shopping centers nationwide.

Based in Houston, Texas, Hines is a privately owned firm involved in developing, managing and acquiring real estate as well as providing a wide range of advisory services. Hines controls a real estate portfolio that includes more than 600 properties representing approximately 195 million square feet of office, mixed-use, industrial, retail and residential properties as well as large master-planned communities and land developments. Hines' real estate portfolio is valued in excess of $9 billion.

Currently, Hines manages 19 million square feet of office and retail space in Houston alone. Other office buildings Hines owns and/or manages in downtown Houston include: Chase Tower, Chase Center, One Shell Plaza, Two Shell Plaza, Bank of America Center, Pennzoil Place, and the Howell Building. CalPERS is the nation´s largest public pension fund with assets totaling more than $165 billion, of which $7.7 billion is invested in real estate. The System provides retirement and health benefits to more than one million state and public employees and their families. For further information on CalPERS, please visit the System´s Web site at www.calpers.ca.gov.