AMB Property Corporation(R) , a leading global developer and owner of industrial real estate, today announced the formation of AMB Europe Fund I, FCP-FIS ("the Fund"), a Euro-denominated open-end commingled fund that will invest in distribution facilities near high-volume airports, seaports and highway systems, and in the major metropolitan areas of Europe, with current target markets in Belgium, France, Germany, Italy, the Netherlands, Spain, the United Kingdom and Central/Eastern Europe.

The current gross asset value of AMB Europe Fund I is approximately Euro 460 million (US$613 million), which includes approximately Euro 439 million (US$585 million) of investments in properties. Total equity committed to the Fund by the initial group of twenty institutional investors is Euro 263 million (US$350 million). AMB's equity commitment of approximately 20%, and a targeted leverage ratio of 60% of the aggregate gross value of the Fund's assets, will permit the Fund to acquire a total of approximately Euro 820 million (US$1.1 billion) in assets. Currently, the Fund has total long-term secured debt of approximately Euro 270 million (US$360 million). Because the Fund is open-ended, AMB has committed to make additional investments in the Fund as necessary for AMB to maintain a specified on-going ownership percentage as the size of the Fund increases.

"We entered Europe in 2002 and since then, our on-the-ground team has been actively developing and acquiring highly efficient and strategically located facilities in several of the continent's key markets tied to global trade," commented Hamid R. Moghadam, AMB's chairman and CEO. AMB's Europe portfolio totals approximately 720,000 square meters (7.7 million square feet) of operating and development facilities. The company's Europe team -- comprised of development, acquisition, customer development, property operations and portfolio management professionals -- is based in Amsterdam, Frankfurt and Paris. "The size of AMB Europe Fund I and the positive response from institutional investors reflect the significant opportunities presented by the dynamic and expanding distribution markets of Europe."

The investment focus of the Fund is to acquire stabilized industrial distribution properties, including those developed by AMB. At closing, the Fund owned 38 distribution facilities totaling approximately 439,000 square meters (4.7 million square feet) that had previously been acquired or developed by AMB. AMB's current development pipeline in Europe includes an additional 281,000 square meters (3 million square feet) that is expected to be contributed to the Fund upon stabilization.

"The success in the U.S. of AMB Institutional Alliance Fund III's open-end structure supports our decision to use this approach for AMB Europe Fund I. AMB continues to meet private capital demand for co-investment opportunities that capitalize on the long-term growth of global trade," commented John T. Roberts, Jr., president of AMB Capital Partners.

As investment manager of the Fund, and consistent with its existing co-investment fund structures, AMB will receive acquisition fees on future acquisitions and fees for asset and portfolio management services. Every three

years, AMB has the ability to receive additional incentive distributions if it exceeds certain internal rate of return benchmarks.

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 March 31, 2007, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 128.2 million square feet (11.9 million square meters) in 40 markets within 13 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 +1 415 394 9000.

Some of the information included in this press release contains forward- looking statements such as targeted leverage ratios, anticipated transaction activity, goals regarding investment strategies and results, and the receipt of certain fees and incentive distributions, 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, 2006.

The securities discussed herein have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein.

FCMN Contact: [email protected]

SOURCE: AMB Property Corporation