AMB Property Corporation Accelerates Development Activity in Japan With Early Construction Start of 1.7 Million Square Foot AMB Narita Air Cargo Center

Global distribution facilities developer and owner AMB Property Corporation announced today that it has acquired 32 acres (13 hectares) of land for industrial warehouse development immediately adjacent to Tokyo's Narita International Airport. Narita International is the world's second busiest airport for cargo volume, according to Airports Council International.

The site acquisition marks the beginning of AMB's development program in Japan. Entitlements and infrastructure improvements to the site have been completed; AMB and Tokyo-based AMB BlackPine will break ground on the first phase of AMB Narita Air Cargo Center on April 5, 2004, two months ahead of schedule. When complete, the development is expected to be Japan's largest dedicated air cargo logistics park.

"Japan is on the front end of a structural shift in their distribution and logistics industry that will require a significant change in the size and configuration of warehouses," said Hamid R. Moghadam, AMB's chairman and chief executive officer. "Delivery of state-of-the-art high throughput facilities will improve the efficiency of Japan's supply chain and help reduce its logistics costs."

Plans for AMB Narita Air Cargo Center call for approximately 1.7 million square feet (162,000 square meters) of warehouse facilities delivered in three phases between 2005 and 2007. The logistics park will include five multistory buildings with a total estimated investment of $150 million. Phase I contains two buildings of two and four stories totaling 685,000 square feet (63,600 square meters).

"Tokyo, including the submarket surrounding Narita International Airport, represents an excellent global opportunity for development of modern distribution buildings," said Moghadam. "The Narita submarket in particular has been underserved for air-cargo-related space, characterized by the current low vacancy rate and long waiting list for on-airport facilities."

In a separate transaction, AMB added two existing warehouse facilities to its greater metropolitan Tokyo holdings with the acquisition of Funabashi Distribution Centers I and II for approximately $22 million. The properties, totaling 252,600 square feet (23,500 square meters), are well located for access to Narita International Airport and the Tokyo central business district. During the purchase process, AMB identified a new customer for space subject to expiring leases on the larger of the two buildings. Funabashi Distribution Centers are now 100% leased to the prominent Japanese logistics companies Tokyo Air Cargo and SBS.

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 December 31, 2003, the company's most recent reporting period, AMB owned, managed and had renovation and development projects totaling 101.5 million square feet (9.4 million square meters) and 1,057 buildings in 36 markets within seven countries. AMB invests in industrial 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.

This document contains forward-looking statements about future plans such as the size and timing of the development project, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve numerous risks and uncertainties and should not be relied upon as predictions of future events. The events or circumstances reflected in our forward-looking statements might not occur. We assume no obligation to update or supplement forward-looking statements. For further information on factors that could impact AMB and the statements contained herein, reference should be made to AMB's filings with the Securities and Exchange Commission, including AMB's annual report on Form 10-K for the year ended December 31, 2003.

SOURCE: AMB Property Corporation