Koll Management Services / NEWPORT BEACH

Nature of Business: Commercial and industrial property management.

Total Employees: 580

In Orange County: 146

Stock Listing in The Times: On NASDAQ as “KollMS”

Ticker Symbol: “KOLL”

Friday’s Stock Close: $12.13

Change: Down $0.13

Analyst Review: “Koll Management Services has diversified away from parent, Koll Co. In 1989, 90% of KMS revenue came from managing for Koll Co. properties; now less than 50% of their revenues are derived from the parent. You like to see that kind of diversification. For the 1991 fiscal year, KMS acquired six properties to manage; in the first quarter of fiscal ‘92, they have 65 properties, most of which came from the acquisition from Tipton Assoc. They also entered into a joint venture with CC&F; Management in which they acquired half of the company’s management operations and they have the right to buy out the remaining 50% at an established price sometime in the next five years. KMS has created a niche for itself. These guys are one of the best at facilities management, and they are doing it profitably.

Steven C. DeLuca, analyst, Cruttenden & Co., Irvine

Revenue and Profits (Dollar amounts in millions.)

2 Qtrs. ’89 ’90 ’91 ’91 ’92 Revenue $14.2 $17.5 $21.5 $10.0 $13.3 Profits $1.5 $1.9 $2.2 $.950 $1.2

Corporate Outlook: “Because of the fragmented nature of the property management business and our focused acquisition strategy, Koll Management Services is ideally situated to grow substantially over the next several years. While KMS provides services to the real estate industry, it owns no real estate, so it is only minimally affected by today’s difficult ownership marketplace.”

Ray Wirta, vice chairman/CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

FISCAL YEAR ENDING MAR. 31 MAR. 31 MAR. 31 2 QTRS. ’89 ’90 ’91 ’91 52-Week High* N/A N/A N/A N/A 52-Week Low* N/A N/A N/A N/A Book Value Per Share $1.02 $0.68 $0.61 $0.61 Price Per Share* N/A N/A N/A N/A Net Earnings (Loss) Per Share $0.56 $0.70 $0.85 $0.36 Price-to-Earnings Ratio* N/A N/A N/A N/A Avg. Return on Investor Equity 56% 106% 122% 53%

FISCAL YEAR ENDING 2 QTRS. ’92 52-Week High* $13.25 52-Week Low* $9.50 Book Value Per Share $2.55 Price Per Share* $12.75 Net Earnings (Loss) Per Share $0.42 Price-to-Earnings Ratio* 15:1 Avg. Return on Investor Equity 14%

* Koll sold 1.1 million shares in its initial public offering July 24, 1991; net proceeds: $6 million; Koll Co. retains 64% ownership of KMS.

For more information call or write, Koll Management Services Inc.: 4343 Von Karman Ave., Newport Beach, Calif., 92660. (714) 833-9360

Source: Koll Management Services Inc.