Kilroy Realty Announces Tax Treatment of 2008 Dividend Distributions

Kilroy Realty Corporation (NYSE:KRC) announced today the tax treatment of its 2008 dividend distributions. The company's total dividend distributions per share of common stock (CUSIP #49427F108) are to be classified for income tax purposes as follows:

The dividend distributions being made to holders of record as of December 31, 2008 and being paid on January 16, 2009 are considered 2009 dividend distributions for federal income tax purposes.

The company's total dividend distributions per share of Series E cumulative redeemable perpetual preferred stock (CUSIP #49427F405) are to be classified for income tax purposes as follows:

The company's total dividend distributions per share of Series F cumulative redeemable perpetual preferred stock (CUSIP #49427F504) are to be classified for income tax purposes as follows:

Stockholders are encouraged to consult with their tax advisors as to their specific tax treatment for Kilroy Realty Corporation common and preferred distributions.

Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange and San Diego counties. Kilroy Realty currently has an in-process development and redevelopment pipeline of approximately 358,000 square feet. At September 30, 2008, the company owned 8.3 million rentable square feet of commercial office space and 3.9 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.