AMB Property Corporation(R) Breaks Ground in Tokyo on 543,100 S.F. BTS Facility for Caterpillar Logistics

SAN FRANCISCO, Dec. 12 /PRNewswire-FirstCall/ -- AMB Property Corporation(R) , a leading global developer and owner of industrial real estate, today announced the groundbreaking of a 543,100 square foot build-to-suit facility in Tokyo that will be fully-leased, for a 15-year term, to Caterpillar Logistics Services, Inc. (Cat Logistics) upon construction completion. Cat Logistics is a wholly-owned subsidiary of Caterpillar Inc. that provides supply chain solutions and services to its parent company and more than 65 other leading corporations throughout the world.

"Following a competitive review process, we are pleased Cat Logistics has selected AMB to develop their state-of-the-art distribution facility in Tokyo," commented Hamid R. Moghadam, AMB's chairman and CEO. "Cat Logistics is one of the world's leading third-party logistic providers and an AMB target customer, and we look forward to expanding our relationship with them in Japan and in other key markets tied to global trade in North America, Europe and Asia."

Construction on the two-story, ramped facility, named AMB Sagamihara Distribution Center 1, is expected to begin in the first quarter of 2007 with an anticipated completion date in the fourth quarter of 2007 and a projected total investment of approximately $87.6 million.

"This transaction further demonstrates the ability of our team to meet the distribution facility needs of our target customers in Japan, executing on our build-to-suit strategy with value enhancing, customer-driven solutions," said Guy F. Jaquier, AMB's president Europe & Asia.

The property is located in the Sagamihara submarket of Tokyo, a site that benefits from the prefecture's well-linked transportation system, with rapid access to the main artery that feeds into the national road linking the submarket to both Tokyo and Yokohama.

AMB Property Corporation currently has more than 5.9 million square feet of distribution warehouse facilities in Japan, including both operating properties and developments in process.

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

AMB Property Corporation(R) is a leading global developer and owner of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of September 30, 2006, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 124.8 million square feet (11.6 million square meters) and 1,109 buildings in 42 markets within 11 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 http://www.amb.com/ or by contacting the Investor Relations department at +1 415 394 9000.

Some of the information included in this press release contains forward-looking statements, such as those related to our expectations of the completion of development of the facility, the pre-leasing of the facility, and the total expected investment of the development, which 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, re-financing risks, difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, our failure to divest properties on advantageous terms 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, changes in general economic conditions or in the real estate sector, changes in real estate and zoning laws or other local, state and federal regulatory requirements, a downturn in the U.S., California, or the global economy, risks related to doing business internationally, losses in excess of our insurance coverage, unknown liabilities acquired in connection with acquired properties or otherwise 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, various market conditions and fluctuations and those other risk factors discussed under the heading "Risk Factors" and elsewhere in our most recent annual report on Form 10-K for the year ended December 31, 2005 and in our quarterly report on Form 10-Q for the quarter ended June 30, 2006.