4/16/99

Lerner to Start Construction for Next Office Tower at
Tysons II

McLean, Virginia - Lerner Enterprises, one of Washington D.C.'s premier real estate developers, has announced that construction will begin in October on the third office tower, a 295,000 square foot, 13 story building at The Corporate Office Centre at Tysons II in McLean, Virginia.

The new building, known as 1600 Tysons Boulevard, will be the next phase of the 117 acre Tysons II, Tysons Corner's most visible commercial property at the intersection of Route 123 and Tysons Boulevard in McLean, Fairfax County, Virginia. Planned for a February 2001 delivery, 1600 Tysons Boulevard features a granite and precast-clad exterior, a dramatic two story granite lobby, efficient and flexible floor plans, fitness club and state-of-the-art telecommunications system.

The Tysons II development to date includes the 800,000 square foot Tysons Galleria anchored by Saks Fifth Avenue, Neiman Marcus and Macy's, the 400 room Ritz-Carlton, Tysons Corner hotel, the fully leased award-winning 375,000 square foot office tower known as 1650 Tysons Boulevard whose major tenants include MCI, Dean Witter and ITT, the recently completed 385,000 square foot, 18-story office tower known as 1750 Tysons Boulevard and the award-winning Lillian Court at Tysons II condominium project. An additional 2.5 million square feet including eight more office buildings and a second hotel can still be developed on the site. 1600 Tysons Boulevard will be connected to the Galleria, 1650 Tysons Boulevard and the Ritz-Carlton with covered walkways.

1750 Tysons Boulevard lead tenants include Deloitte & Touche LLP, the law firms of McGuire Woods Battle & Boothe and Greenberg Traurig and the Palm

Restaurant. The building has reached a 97% occupancy level and opened on schedule this month.

"Lerner Enterprises is excited about starting the construction of 1600 Tysons Boulevard at Tysons II, which is clearly the premier mixed-use office development in Northern Virginia. The demand for Class A office space in Tysons Corner continues to be significant and the current low vacancy rate provides an excellent environment to begin a new development. Because of the strength of the Class A market, it is our intention to begin construction of 1600 on a fully speculative basis.", stated Mark D. Lerner, a principal of Lerner Enterprises.

Architects for the building are Weihe Design Group of Washington, D.C., the Civil Engineer is William H. Gordon of Chantilly, Virginia, Lerner Corporation of North Bethesda, Maryland will handle management and Diamond Property Company of McLean, Virginia will act as leasing consultant to the project. The general contractor will be The Clark Construction Group, Inc. of Bethesda, Maryland.

Lerner Enterprises, founded by Theodore N. Lerner, is based in North Bethesda, Maryland and is one of Washington, D.C.'s largest real estate developers. The company is involved in all phases of commercial and residential real estate including planning, development, construction, leasing, asset management and property management.

Among its extensive office portfolio are Flint Hill Office Park, 7799 Leesbrug Pike and 400 Army Navy Drive in Northern Virginia and White Flint North in Maryland, and Washington Square and 1133 Connecticut Avenue in Washington, D.C.

Additional information on Lerner Enterprises is available on the Internet at Lerner.com.