Richard Kincaid, Equity Office's president and chief executiveofficer, says that with year-to-date sales totaling $1.6 billion,the company is on target to sell $2 billion to $3 billion of assetsby year-end. "It is the right business decision to take advantageof today's strong asset-sale environment to sell non-strategicproperties," Kincaid says.

The company expects to identify approximately $80 million ofgains and $170 million of non-cash impairment charges related tosales closing in the second quarter. The company notes a $200million to $215 million impairment charge due to accelerateddisposition plans and a reduction in the intended holding period on53 additional assets (totaling 6.7 million sf) anticipated to sellafter June 30, 2005. This is expected to reduce net income and FFOin the company's second quarter results.

In the first quarter, disposed properties include: NorthlandPlaza, Bloomington, MN; Meier Central North-Buildings 13 and 14,Santa Clara, CA; Water's Edge, Marina Del Rey, CA; One, Two &Three Devon Square, Wayne, PA; Meier Central South-Building 12,Santa Clara, CA; One, Two, Three, Four & Five Valley Square,Oak Hill Plaza, Walnut Hill Plaza and Four Falls, Suburban, PA; OakCreek I, Milpitas, CA; and Meier Central North-Building 15, SantaClara, CA.

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