Kia To Build Parts and Training Ceneter in Allentown, PA

WEST CONSHOHOCKEN, Pa., Dec. 22, 2003 -- Keystone Property Trust today announced that it reached an agreement to develop a parts distribution and training center for KIA Motors America, Inc. ("KIA") at 7554 Morris Court in Keystone's Westpark Business Center in Allentown, PA. KIA will lease 211,535 square feet ("SF") out of a total of 265,535 SF to be built. Keystone will retain ownership of the asset.

The project will provide KIA with a modern and flexible facility that will be 30' clear, crossdocked, and include ESFR sprinklers and 50' x 50' column spacing. Construction is expected to begin in March 2004 with occupancy scheduled for the fourth quarter of 2004. The project costs are estimated to be approximately $10 million.

KIA will continue to occupy its existing 169,000 SF facility at Keystone's 7542 Morris Court within Westpark until the new facility is complete. Westpark Business Center is located in the Route 100 corridor within the Lehigh Valley, which is centrally located in relation to the major East Coast population centers.

A. Donald Chase, Senior Vice President of Investments for Keystone, added:

"This transaction represents our ability to satisfy the growth needs of an existing tenant by utilizing our substantial land bank in the Lehigh Valley and further establishes Keystone as a premier build-to-suit developer in the East Coast region, coupled with our recent projects with Home Depot and Romark Logistics."