Kilroy Realty Announces Tax Treatment of 2008 Dividend Distributions

LOS ANGELES--(Business Wire)--
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:

Record Payable Total 2008 2008 2008 2008
Date Date Distribution Taxable Total Capital Unrecaptured Return of
per Share Ordinary Gain Section 1250 Capital
Dividend Distribution Gain (1)
12/31/07 1/18/08 $ .555000 $ .397911 - - $ .157089
3/31/08 4/18/08 .580000 .415835 - - .164165
6/30/08 7/18/08 .580000 .415835 - - .164165
9/30/08 10/17/08 .580000 .415835 - - .164165

(1) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

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:

Record Payable Total 2008 2008 2008 2008
Date Date Distribution Taxable
Total Capital Unrecaptured Return of
per Share Ordinary Gain Section 1250 Capital
Dividend Distribution Gain (1)
1/31/2008 2/15/2008 $ .487500 $ .487500 - - -
4/30/2008 5/15/2008 .487500 .487500 - - -
7/31/2008 8/15/2008 .487500 .487500 - - -
10/31/2008 11/17/2008 .487500 .487500 - - -

(1) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

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:

Record Payable Total 2008 2008 2008 2008
Date Date Distribution Taxable Total Capital Unrecaptured Return of
per Share Ordinary Gain Section 1250 Capital
Dividend Distribution Gain (1)
1/31/2008 2/15/2008 $ .468750 $ .468750 - - -
4/30/2008 5/15/2008 .468750 .468750 - - -
7/31/2008 8/15/2008 .468750 .468750 - - -
10/31/2008 11/17/2008 .468750 .468750 - - -

(1) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

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.

Kilroy Realty Corporation
Richard E. Moran Jr.
Executive Vice President and Chief Financial Officer
310-481-8483
or
Tyler H. Rose
Senior Vice President and Treasurer
310-481-8484

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