PRESS RELEASES

Preliminary Contract Signed for the Purchase of the Ex-Varesine Terrain

3/31/2005

(MILAN, ITALY) – Hines and Galotti Spa have announced the reaching of an agreement with the owners of the Ex-Varesine terrain, via the completion of a preliminary purchase contract.

Hines, which already owns the majority of construction rights in the PII Garibaldi Repubblica zone, and is promoter of the Città della Moda project, has formed a partnership with Galotti, a firm belonging to the Marchesini family, for this important project. The aim is to implement the collaboration between the two Groups, a collaboration which first came about on the occasion of the race to win rights to the internal centre in the Fiera di Milano in 2004, via the Aprile consortium.

Hines will be involved in the operation on two fronts: via capital of the Hines European Development Fund, which already invests in the Città della Moda, and via capital managed by the Hines Group.

A project company has been created especially for the purpose of development of this area named “Endeavour”, after the famous J class sailboat of the 1930s, in memory of Riccardo Catella. The company has set the project in motion, with the full collaboration of the owner, and it aims on opening the construction sites by 2005.

This deal will bring about the reunification of the Garibaldi Repubblica area, allowing for territorial development of this central Milan zone - a fundamental step for the regeneration of the surrounding urban fabric - and to confirm the competitive edge of the city on a world-wide scale.

The development project of the Ex-Varesine area will cover over 80,000sqm of total floor space, the characteristics of which will be presented over the course of the next few months, following operative appraisals by the relevant authorities.

The project to be developed in this area, aims to guarantee and respond to the needs of the city of Milan and its inhabitants, as well as its surrounding environments, as is already happening in the adjacent PII Garibaldi Repubblica area, planned for the private sector, alongside the architect Cesar Pelli.

According to the Hines Italia managing director, Manfredi Catella, “The purchase of this area means our group has reached an important objective, following years of discussion with the owners, allowing us to create a coherent and concerted urban development. This will lead to an new site in Milan, where urban quality, centrality for the citizens, culture and localisation of the Lombardy and national economic motors will be the ingredients which add to our country’s competitive edge in Europe. The collaboration with the Galotti firm, owned by the Marchesini family, is an important alliance for us, in which we share ethical and business principles, which we believe must continuously inspire such passionate, ambitious and demanding projects.”

According to the Galotti vice president, Luigi Marchesini, “The acquisition of the area is an important step in the development of our company in Milan, which has always been involved in ambitious projects for urban upgrading. The partnership with Hines is a fundamental element in the evaluation of investment, and I am sure that it will consent reciprocal strengthening and significant synergy in the activity of real-estate promotion and development.”

“I welcome with great interest the intervention of these two groups,” states the councillor for Territorial Development, Gianni Verga, with regards to coherence and harmony with the Città della Moda and a completion of the territorial environs surrounding the PII Garibaldi-Repubblica area. “We hope that with this step an intervention on one of the areas which has long been a headache for the city will come about in a short space of time, following the same aims for architectonic excellence that was reached in the Città della Moda.”

Hines

The Hines Group is one of the major real-estate operators on the international scene, with headquarters the world over. Founded in 1957 in Houston (Texas) by Gerald D. Hines, the Group, whose capital is entirely private, has been active in the areas of investment, development and real-estate management. It employs over 3,000 staff and its work covers the United States of America, Europe, as well as the so-called “emerging markets” (Russia, Poland, China, Mexico, Argentina). So far, Hines has developed 680 projects the world over, covering over 18 million square metres, in collaboration with some of the most renowned names in international architecture, such as Philip Johnson, César Pelli, Norman Foster and Frank Gehry. In Europe, in particular, projects are underway for over 1 million square metres, financed both by the group’s capital and by institutional real-estate funds. In Italy, the Hines Group has been present since 1999, in the shape of Hines Italia, formed with the Catella family, who have been operating in the real-estate sector since 1970. Hines’ activity in Italy is focused on real-estate investment and development, both with its own funding and the management of real-estate funds.

Galotti

Galotti Spa, founded by the current chairman, Luciano Marchesini, is a real-estate promotion and development firm, which has been up and running for over half a century. Its presence on the Milan market is well-known, with numerous accomplishments in the tertiary and residential sector. They invest in thedevelopment of highly complex areas and follow their aim of enhancing the urban environment via products which are suitable for satisfying the expectations of the users and adding to the city’s worth while providing value for money to their investors. In the last few years, Galotti has transformed over 1,800,000 sqm of territory into integrated compartments and developed 250,000sqm of housing, 200,000 sqm of commercial space and 300,000 sqm of office space.