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  - First Phase of ProLogis Park Lingang to Exceed One Million Square Feet -

    SHANGHAI, China, Dec. 16 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a
leading global provider of distribution facilities and services, today
announced that it has entered into an equity joint venture (EJV) agreement
with Shanghai Lingang Economic Development Group, Co., Ltd. (Lingang Group),
to develop a 768-acre (3.2 km2) logistics park in Lingang New City, Shanghai.
Strategically located on the southeast coastline of Shanghai, Lingang New City
is planned by the Shanghai Municipal Government to support Shanghai Yangshan
International Deep Water Port (Yangshan Port), which is expected to be the
world's largest port upon its completion.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/19990420/PROLOGIS)
    Phase I of ProLogis Park Lingang will consist of eight facilities totaling
nearly 1.1 million square feet (98,172 m2).  Ultimately, the Park could
support 10-15 million square feet (900,000-1.4 million m2) of distribution
space.  As a 50% partner in the EJV, ProLogis will invest $14.9 million, or
half of the total costs, in this initial phase of development.  ProLogis will
be the exclusive developer of distribution facilities in the Park and will
have the first right to partner with Lingang Group on future logistics parks
in Lingang New City.
    Jeffrey H. Schwartz, ProLogis' president of international operations and
president and chief operating officer of Asia, said, "Our EJV with the Lingang
Group positions us to play a key role in Lingang New City's deep water port,
which promises to be one of China's -- and the world's -- most important ports
for years to come.  When one realizes that 80% of world trade travels by sea
and over 50% of worldwide container traffic originates in Asia, it is easy to
appreciate the great potential of this investment."
    The Shanghai government is planning to spend approximately $12 billion
(RMB100 billion) to develop Yangshan Port into a world-class port that
eventually will have over 50 berths and an annual capacity of 25 million TEUs
(twenty-foot equivalent units).  In comparison, the busiest port in the world
today is Hong Kong Port with a capacity of 20.5 million TEUs.
    Shanghai is a prime location for distribution, and the city's significant
and continued investment in its infrastructure is likely to bring about the
region's expanded role as a key global logistics hub.  ProLogis Park Lingang
will be located adjacent to the Lingang Expressway, which leads from Yangshan
Port to Shanghai's central business district and the rest of China.
Additionally, the Park's rail terminal will ensure complete multimodal
accessibility.
    Construction of Phase I of the ProLogis facilities will begin in the
second quarter of 2005 and completion is expected in the fourth quarter of the
year, at approximately the same time that the first phase of development of
Yangshan Port is projected to be completed.

    About ProLogis
    ProLogis is a leading provider of distribution facilities and services
with 291 million square feet (27 million square meters) in 1,972 distribution
facilities owned, managed and under development in 70 markets in North
America, Europe and Asia.  ProLogis continues to expand the industry's first
and largest global network of distribution facilities with the objective of
building shareholder value.  The company expects to achieve this through the
ProLogis Operating System(R) and its commitment to be 'The Global Distribution
Solution' for its customers, providing exceptional facilities and services to
meet their expansion and reconfiguration needs.

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