PRESS RELEASES

Hines, The International Real Estate Firm, Announced Today The Sale Of 1776 G Street N.W. In Washington, D.C., An Eight-Story Office Building, To Washington Real Estate Investment Trust (Writ).

8/13/2003

Hines Sells 1776 G Street N.W. In Washington, D.C. To Washington Real Estate Investment Trust (HOUSTON, TX) - Hines, the international real estate firm, announced today the sale of 1776 G Street N.W. in Washington, D.C., an eight-story office building, to Washington Real Estate Investment Trust (WRIT). The 260,000-square foot building is located at the corner of 18th and G streets one block from the White House and the Old Executive Office Building. The building was owned by National Office Partners Limited Partnership (NOP), a partnership of the California Public Employees' Retirement System (CalPERS) and Hines.

NOP was represented in the transaction by Cassidy & Pinkard.

1776 G Street was acquired in 1999 by NOP. The building, which was designed by Smith, Segreti, Tepper, McMann & Harned, was completed in 1979. It is currently 88% leased to tenants including The World Bank, the International Monetary Fund and George Washington University.

"We acquired 1776 G Street four years ago for NOP and we were able to add measurable value through our repositioning efforts," said Hines Senior Vice President Bill Alsup. "The Washington, D.C. office market is one of the most vital and solid in the U.S. and remains an important focus for Hines and NOP."

WRIT is a self-administered, self-managed equity real estate investment trust investing in income producing properties in the greater Washington - Baltimore region. The Trust owns a diversified portfolio of 61 properties consisting of 11 retail centers, 25 office properties, 16 industrial properties and nine multi-family properties. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).

CalPERS is the nation's largest public pension fund with assets totaling $130 billion, of which over $13 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.

National Office Partners is a partnership of CalPERS and Hines which was formed in 1998. The investment partnership currently owns approximately $2.5 billion in Class A office assets encompassing 10 million rentable square feet in 14 existing buildings and two development projects. For more information on NOP, please refer to www.noplp.com.

Hines is a privately owned real estate firm involved in developing, acquiring, leasing and managing real estate, as well as providing extensive global investment management and advisory services. With offices in 78 U.S. cities and 11 foreign countries, and assets in excess of $13 billion, Hines is one of the largest real estate organizations in the world. Access www.hines.com for more information.