PRAEDIUM GROUP AND THE SHIDLER GROUP SELL 15015 AVENUE OF SCIENCE PROPERTY IN SAN DIEGO FOR $18 MILLION

September 12, 2003-New York and San Diego, CA--The Praedium Group LLC, a New York City-based national real estate investment firm, and San Diego-based The Shidler Group announced today the sale of 15015 Avenue of Science in San Diego to Harsch Investment Properties, LLC of Portland, Oregon for $18 million, or $207 per square foot.

The 90,000 square foot, two-story office building contains a 4,000 square foot "Class 10,000" clean room and a 3,000 square foot full-service cafeteria. The property is currently 100% occupied by software firms.

Praedium's local operating partner is Matthew J. Root of The Shidler Group in San Diego. The venture was represented in the sale by John Hale and Jay Alexander of Colliers International, who represented both the buyer and seller.

Chris Hughes, Praedium Group principal stated, "In our joint venture with The Shidler Group, we acquired a Class A asset in a premier location along the Route 15 corridor. Within a very short period of time we were able to bring occupancy from approximately 12 percent up to 100 percent, making this a desirable investment for institutional players."

Separately, Praedium also partnered with The Shidler Group to purchase a one-story flex office building totaling 77,000 square feet in the Scripps Ranch submarket of San Diego. This asset was recently sold to an owner-user for $8 million.

The Shidler Group is a national real estate organization that actively acquires commercial real estate for its own account. It currently owns and operates over 6 million square feet of commercial property throughout Texas, Arizona, Hawaii and Southern California. Since its founding in 1972, The Shidler Group and its affiliates have facilitated the acquisition of over 130 million square feet of commercial property.

The Praedium Group is a real estate investor focusing on underperforming and undervalued assets throughout North America, with more than $2 billion in total investments to date. Praedium was formed in 1991 with a leading international investment bank as its sole investor.

Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.

Praedium is currently investing in its most recent $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund will invest in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. For more information please see www.praediumgroup.com.