ProLogis (NYSE: PLD), a leading global provider of distribution facilities and services,  announced that it has leased more than 290,000 square feet (27,000 square meters) of industrial space at two parks the company operates in southern China.  The parks are located in the city of Guangzhou, one of China's key manufacturing and logistics hubs. The first, ProLogis Park Yunpu, is located inside a government economic development district and can accommodate up to 1.25 million square feet (116,000 square meters) at full build-out. The other, ProLogis Bonded Park Guangzhou, offers customers duty-free processing of goods as well as other Free Trade Zone benefits.

Facilities constructed in the first phase of development at both parks are now fully leased. ProLogis will develop a new, 151,000-square-foot (14,000-square-meter) inventory building at ProLogis Bonded Park Guangzhou to accommodate future demand at that location, with construction scheduled to begin in the second half of 2006.

"ProLogis is experiencing strong demand for industrial space in Guangzhou, the largest city in southern China and the heart of economic activity in the Pearl River Delta," said Ming Mei, ProLogis managing director for China. "With more than $50 billion in foreign trade in 2005, Guangzhou has gained prominence as a distribution center for both domestic and offshore customers, a fact reflected in the recent lease agreements at our parks here. We're pleased with the pace of the company's growth in Guangzhou and look forward to continued expansion in this strategically important market."

The new transactions include:

    *  124,000 square feet (11,500 square meters) pre-leased at ProLogis Park
       Yunpu to Yum! Brands, one of the world's largest restaurant franchisors
       and owner of KFC, Pizza Hut, Taco Bell and other leading brands. China
       is the number-one market for new restaurant development for Yum!
       Brands.  Construction of the facility is scheduled to be completed in
       the second half of 2006.

    *  73,000 square feet (6,800 square meters) at ProLogis Bonded Park
       Guangzhou leased to JFA Group, a third-party logistics provider based
       in Asia.  The facility will be used as a distribution center and
       warehouse for bonded goods.

    *  59,000 square feet (5,500 square meters) at ProLogis Bonded Park
       Guangzhou leased to ST-Anda Logistics Co. Ltd, a subsidiary of SembCorp
       Logistics, one of the largest integrated third-party logistics
       providers in Asia.  ST-Anda also leases more than 430,000 square feet
       at ProLogis Park Yunpu.

    *  35,000 square feet (3,250 square meters) at ProLogis Bonded Park
       Guangzhou leased to ABS, a wastewater technology solutions provider and
       a division of the Swedish industrial group Cardo. ABS will use the
       facility as a distribution center and warehouse for bonded goods.

    All four leases were signed in the first or second quarters of 2006.

ProLogis is one of China's leading providers of industrial distribution facilities, with approximately 6.9 million square feet of industrial space owned, managed or under development. Major customers in China include adidas, Samsung, L'Oreal, UPS and Exel.

About ProLogis

ProLogis is a leading provider of distribution facilities and services with 388.6 million square feet (36.1 million square meters) in 2,337 properties owned, managed and under development in 79 markets in North America, Europe and Asia as of March 31, 2006. We continue to expand the industry's first and largest global network of distribution facilities with the objective of building shareholder value. We expect to achieve this through the ProLogis Operating System(R) and our commitment to provide exceptional facilities and services to meet our customers' expansion and reconfiguration needs.

SOURCE ProLogis