PRESS RELEASES

CalPERS And Hines Announce The Acquisition Of Woodside Technology Centre In Redwood, CA

Transaction Marks Eighth Acquisition for Hines/CalPERS Joint Venture

3/15/2000

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 Woodside Technology Centre in Redwood City, California. The property was purchased from The Carlyle Group, a private global investment firm based in Washington, D.C. Chris Jacobs of CB Richard Ellis served as broker for the transaction.

Woodside Technology Centre is a 253,000-square-foot Class A suburban office complex strategically located within the Peninsula submarket (San Mateo County) of the San Francisco Bay Area. The complex, which consists of three two-story buildings, was constructed in 1998 and is 100% leased to five tenants: NEC, Heartport, Kana Communications, Ceon and Improvenet.

"This investment reflects our conviction in the strength of the Peninsula submarket and its role as the center of the technology revolution," said Jim Buie, executive vice president of the Hines West Region.

"Woodside Technology Centre offers the open design and convenient location for which technology firms in this market are searching," added Lisa Burke, a project manager with Hines.

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. Woodside Technology Centre is the eighth office building acquisition made by National Office Partners since inception, which brings the portfolio size to 8.1 million square feet in 23 buildings across the United States, totaling over $1.5 billion in value.

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 625 properties representing approximately 190 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.

CalPERS is the nation's largest public pension fund with assets totaling approximately $170 billion, of which $8 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 .