PRESS RELEASES

One Twelfth @ Twelfth Reaches 50 Percent Leased

4/19/2000

Hines, the international real estate firm, announced today that two new leases have been signed at One Twelfth @ Twelfth, a three-building, 480,000-square-foot office development currently under construction at 112th Avenue NE and NE 12th Street in Bellevue, Washington. HomeGrocer.com, an on-line grocery service, has signed a lease for 88,000 square feet, and Nortel Networks, a global leader in telephone, data, wireless and wireline solutions for the Internet, signed a lease for 53,000 square feet. Previously Mulvanny Architects signed a lease for 67,000 square feet in December and has agreed to lease an additional 24,000 square feet in the West building. The two lease transactions in addition to the expansion by Mulvanny Architects, brings the project to being nearly 50% leased.

HomeGrocer.com has more than 1,600 employees and currently leases 70,000 square feet at Plaza at Yarrow Bay in Kirkland, and 42,000 square feet at Plaza Center in downtown Bellevue, in addition to its customer fulfillment center in Renton. HomeGrocer.com will move into the South Building at One Twelfth @ Twelfth early next year.

Nortel Networks is located in downtown Bellevue's Bellevue Place, and employs more than 70,000 employees worldwide. Nortel's employees will relocate from their current Bellevue location to the East building during February of next year.

Construction on One Twelfth @ Twelfth began last fall. The West Building will open in December and the other two buildings in February of next year.

"We are extremely pleased with the mix of tenants we have attracted to the project so far. Leasing activity has been brisk, and we plan to have the complex fully leased by year end," said Hines Project Manager Lisa Picard.

John Black, Paul Sweeney and Jason Furr of the Broderick Group are marketing the project on behalf of Hines.

"The interest in the project has been extremely strong, and those tenants who can think a little further into the future have been able to secure prime space," said John Black of the Broderick Group. "We haven't been much of a pre-lease market, but times are changing with the lack of new supply."

Hines first entered the Washington market in 1981 developing the 1.2 million-square-foot Seafirst Fifth Avenue Plaza in Seattle, and the 350,000-square-foot Seafirst Financial Center in Spokane. In October of last year, Hines completed Cedar Court, a four-building, campus-style office complex totaling 430,000 square feet in Redmond, Washington. With the construction of One Twelfth @ Twelfth and the development of the 800,000-square-foot, 40-story, IDX Tower at Fourth & Madison in downtown Seattle, Hines will have more than three million square feet of office in the greater Seattle area.

Hines is a privately-owned international real estate firm involved in developing, managing, leasing and acquiring real estate in the Puget Sound, West Coast, throughout the United States and internationally. Founded in 1957, the firm now employs more than 2,800 employees. The Hines portfolio includes more than 600 properties representing 190 million square feet of office, mixed-use, industrial, retail and residential properties as well as large master-planned communities and land developments. Access www.Hines.com for more information.