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US Industrial REIT Launches New Partnership

June 30th, 2003 - San Antonio, TX

An affiliate of AEGON USA joined the list of co-investors in the US Industrial REIT (“USIR”). USIR, a private real estate investment trust, was formed earlier to acquire Class-A bulk distribution properties. The REIT recently acquired 18 properties in three states valued at over $265 million and consisting of over 9.9 million square feet of space. USAA Real Estate Company, as sponsor, plans to expand the REIT holdings with additional acquisitions in the top 20 distribution markets nationwide.

AEGON is a Netherlands Insurance Company with U.S. headquarters in Cedar Rapids, IA. Its subsidiaries offer personal and commercial life and accident insurance, as well as retirement and savings advice and management services. AEGON’s US operations also offer life, nonmedical health and long-term care insurance, annuities and other retirement products. AEGON joins three other institutional firms that purchased REIT shares earlier this year.

“We are very pleased to have Aegon as a co-investment partner. The continuation of our business relationships with AEGON is very regarding and we look forward to additional opportunities in the future,” said Edward B. Kelley, President and CEO of real estate operations and investments for USAA Real Estate Company.

The REIT is managed by USAA Equity Advisors, Inc. Affiliates of USAA Real Estate Company will maintain a minimum ownership of at least 25% in USIR. Properties currently owned by the REIT are located in Chicago, Memphis and Columbus.

USAA Real Estate Company has more than $2.8 billion of assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA Real Estate Company portfolio consists of approximately 29 million square feet of office, industrial and hotel properties as well as investments in real estate operating companies.

Its parent, USAA, is one of America's leading financial service companies and offers its 5 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $66 billion.