FFO was $80.6 million or $1.05 per share for the second quarterof 2000. In 1999, second-quarter FFO was $63.2 million, or 85 centsa share. Net income for the second quarter, before gain ondisposition of property and minority interests for the secondquarter, was $61.3 million, or 88 cents a share, on revenue of $184million. The comparable numbers for the second quarter of 1999 were$48.7 million, or 59 cents a share, on revenues of $158.7million.

For the first six months of 2000, FFO increased to $153 millionor $2 per share from FFO of $123.4 million or $1.67 per share forthe same period in 1999. This represents a year-to-year increase inFFO and FFO per share of 24 percent and 19.8 percent, respectively.Net income from operations for the first six months of 2000 was$114.6 million, or $1.75 a share, on revenue of $353.5 million. Inthe first half of 1999, net income was $96.3 million, or $1.16 ashare, on revenue of $309.4 million.

Spieker Properties is a publicly traded real estate company thatowns and operates more than 41 million square feet of commercialreal estate in California and the Pacific Northwest. Of the 2.5million square feet of second generation space renewed or re-leasedin the second quarter, rents increased, on average, 68.1 percent.Additionally, the average term on leases signed this quarterincreased to 69 months.