KOLL DEVELOPMENT COMPANY ANNOUNCES 100,000 SQUARE FOOT LEASE WITH DHL SYSTEMS

PHOENIX, Ariz. - Koll Development Company announced today that a 106,000-square-foot lease has been executed for space at Koll Perimeter Center, located at the northwest corner of Bell Road and the Loop 101 Freeway in The Perimeter Center in Scottsdale by DHL Systems, Inc.

DHL Systems, Inc., the information technology subsidiary of DHL Worldwide Express, intends to use the building as a data center to manage their worldwide network. DHL Systems, Inc., has two other data centers located in London, England and Kaula Lampur, Malaysia.

"The overnight mail and supply chain management company chose Koll Perimeter Center because they recognize the many benefits of North Scottsdale as an office location for their employees, including the building's increased accessibility since the completion of the Loop 101 freeway," said Stuart Morkun, vice president, development, Koll Development Company. "Our proximity to area amenities including retail, restaurants, recreation and executive housing make it an attractive location for companies that seek convenience for their employees."

CB Richard Ellis executives negotiated the DHL System lease for both the landlord and tenant. Tom Adelson, Jim Fijan and Jerry Roberts negotiated on behalf of the landlord, while Chris Hook represented DHL Systems.

Completed in October 2001, Koll Perimeter Center consists of two two-story buildings and more than 212,000 square feet of space. The complex is visible from the freeway in a desirable location in The Perimeter Center, one-half-mile east of the Tournament Players Club (TPC) of Scottsdale, home of the Professional Golf Association's (PGA) Phoenix Open, and offers views of the McDowell Mountains and Phoenix metropolitan area.

Koll Development Company, one of America's leading full-service commercial real estate firms, provides a full range of commercial real estate services, including both speculative and build-to-suit development, construction management, financing, asset and land management, and marketing and leasing.