Leading Real Estate Companies Form Company to Focus on Real Estate and Technology

SAN FRANCISCO, CA - (May 4, 2000) - Leading real estate companies across a broad range of property sectors announced today the formation of a real estate technology company, currently referred to as Project Constellation. The company intends to form, incubate and sponsor real estate-related Internet, e-commerce and broadband enterprises; acquire interests in existing "best of breed" companies on a synergistic basis; and act as an opportunistic consolidator across property sectors in the emerging real estate technology area.

Project Constellation's founding membership includes the three largest public real estate companies and the three largest real estate service companies by total market capitalization. Founding members include: AMB Property Corporation, Equity Office Properties Trust, Equity Residential Properties Trust, Kaufman & Broad Home Corporation, Simon Property Group and Spieker Properties; a group comprised of the dominant participants in the real estate service sector, CB Richard Ellis Services, Jones Lang LaSalle and Trammell Crow Company; Morgan Stanley Dean Witter, both as investor through its private equity funds, and as advisor to Project Constellation through its real estate and technology banking units; and Chase H&Q Capital Partners, a strategic affiliate of Chase Capital Partners. Collectively, the total capital commitment of the founding members is $135 million.

The real estate founders of Project Constellation own and/or manage approximately $250 billion of institutional quality real estate across the office, retail, apartment and industrial sectors. Project Constellation is positioned to benefit from its founders' size and scope as a result of the direct access the company will have to the deal flow, due diligence expertise, beta-testing platforms and senior management of these companies. "Given the composition of its membership base, Project Constellation will be able to quickly assess the merit of any real estate-related technology opportunity and provide the necessary resources to position the resulting products or enterprises as market leaders," says Craig Vought, co-chief executive officer of Spieker Properties. "The idea is to bring the members' expertise, relationships and organizational strength to bear, not simply capital."

Project Constellation's founding membership not only includes the leading owners, managers and developers of real estate, but also those that have been most progressive in sponsoring real estate technology initiatives and companies. To date, founding members own, have created or have significant investments in over 20 real estate technology companies (separate and apart from Project Constellation), ranging from procurement exchanges to e-tailing concerns to broadband providers. "A fundamental premise behind Project Constellation is the mobilization of industry leadership," says David Simon, chief executive officer of Simon Property Group, "Each of the companies involved in this effort have long perceived the application of technology as critical to their respective businesses."

Tim Callahan, president and chief executive officer of Equity Office Properties Trust added, "In addition to size and scope, the members of this consortium bring intellectual capital to the table. We have all dedicated internal resources toward identifying and pursuing new opportunities in the real estate technology arena. Now, we will be able to extend our reach into these efforts. Participation in the consortium will enable each of us to leverage our existing capabilities and engage in activities that complement our individual initiatives."

Added Hamid Moghadam, CEO of AMB Property Corporation, "The new economy is all about collaboration. With respect to Project Constellation, collaborative sponsorship has created a tremendous network effect, giving the company unparalleled ability to pursue vertical and horizontal opportunities, as well as influence the winners in one of the largest, most fragmented industries in existence."

The company expects to establish its headquarters in the San Francisco Bay Area and will have its own management team, which is presently being assembled.

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