AMB Property Corporation Announces Acquisition in the People's Republic of China

AMB Property Corporation , a leading global developer and owner of industrial real estate, today announced it has completed its first acquisition in the People's Republic of China with the US$8.7 million closing of an existing 184,000 square foot industrial facility in Shanghai, China's largest city. Included in the sale is an adjacent parcel of land capable of supporting up to 185,000 square feet of development, which the company expects to begin in 2006 through its Shanghai office.

The building, named AMB Jiuting Distribution Center, is leased to two international firms: an Asian-Pacific distributor of pharmaceutical products and a subsidiary of a French sports gear distributor and retailer.

"This first acquisition in China is a significant milestone in our strategy to offer our customers a global network of distribution facilities in major hubs along the global supply chain," said Hamid R. Moghadam, AMB's chairman and CEO. "Further, the acquisition of both an existing building and an infill development site provides us with an optimal way to begin building and owning industrial real estate in China."

AMB Jiuting Distribution Center is located in an industrial zone approximately six miles from the Hongqiao Airport and 12 miles from Shanghai's city center. The existing facility consists of a fully-leased, 151,750 square foot distribution center and 32,250 square feet of ancillary office space that is currently unleased.

AMB Property Corporation. Local partner to global trade.(TM)

AMB Property Corporation is a leading owner and operator of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of September 30, 2005 AMB owned, managed and had renovation and development projects totaling 118.0 million square feet (11.0 million square meters) and 1,109 buildings in 40 markets within ten countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company's portfolio is comprised of High Throughput Distribution(R) facilities -- industrial properties built for speed and located near airports, seaports and ground transportation systems.

AMB's press releases are available on the company website at www.amb.com or by contacting the Investor Relations department at 1-877-285-3111.

Some of the information included in this report contains forward-looking statements, such as those related to future development plans in Shanghai, China, including the timing and size of the development, and future acquisition plans in the People's Republic of China, are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future events. The events or circumstances reflected in forward-looking statements might not occur. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date of this report or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, our failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, our failure to divest properties we have contracted to sell or to timely reinvest proceeds from any divestitures, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, our inability to obtain necessary permits and public opposition to these activities), our failure to qualify and maintain our status as a real estate investment trust, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in real estate and zoning laws, risks related to doing business internationally and increases in real property tax rates. Our success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation, population changes and certain other matters discussed under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations - Business Risks" and elsewhere in our most recent annual report on Form 10-K for the year ended December 31, 2004.

SOURCE: AMB Property Corporation