Contact: Ken Wildes
Director of University Communications
University of Pennsylvania

Barbara Bower
Senior Vice President
Trammell Crow Company


Philadelphia, October 9, 1997

The University of Pennsylvania has signed a letter of intent with Trammell Crow Company, one of the largest diversified commercial real estate services companies in the United States, to be the exclusive provider of certain infrastructure management services with respect to designated properties and grounds, according to an announcement today by University of Pennsylvania President Judith Rodin. The letter of intent anticipates the negotiation of a binding definitive agreement that will be subject to approval by the Trustees of the University of Pennsylvania, and it anticipates that the agreement between Penn and Trammell Crow Higher Education Services, Inc. (TCHES), a subsidiary of Trammell Crow Corporate Services, will provide for the management oil operations, maintenance, utilities, facilities planning and design, small renovation work, grounds-keeping, owner representation for construction, and accounting and financial reporting.

The letter of intent indicates that an agreement will cover designated on- and off-campus properties which are expected to encompass at least 10 million square feet of space, and will facilitate improved facilities management services to students, faculty and staff. "Sound management of our facilities is vital to the teaching and research mission of universities like Penn," said Rodin. "Our core facilities, whether classrooms, laboratories, libraries, student residences, offices or recreational facilities, simply must be managed cost-effectively, but with a particularly high level of service."

Trammell Crow Company also will provide real estate portfolio and transaction management services, including property acquisitions and dispositions, and construction management services.

Bill Concannon, President of Trammell Crow Corporate Services, said "This ten-year agreement will represent a significant commitment by Trammell Crow Company to both Penn and the West Philadelphia community. We are looking forward to establishing a regional office in University City, which will create as many as 30 new jobs."

According to the terms of the letter of intent, all affected staff will have an opportunity to interview with Trammell Crow Company, and TCHES will make a commitment to hire a large majority of the affected staff. Salaries for those who are offered employment with Trammell Crow Company will be at least the same as their current salaries. Where collective bargaining agreements are in force, the University will honor its obligations under existing collective bargaining agreements and its obligations to labor organizations under the National Labor Relations Act.

University of Pennsylvania Executive Vice President John A. Fry said that when approved, the agreement will build on the existing relationship between Penn and Trammell Crow Corporate Services, which began in 1996. At that time, TCCS was selected to lease and manage Penn's off-campus office, retail and residential buildings in conjunction with University City Associates (UCA), Penn's real estate subsidiary, as well as supervise the day-to-day operations of the UCA employees. "We are committed to improving the wide range of facilities management services while increasing operating efficiency and cost-effectiveness," Fry said. "Trammell Crow Company brings a wealth of experience in facilities management and in dealing with all types of real estate under every conceivable ownership and locational circumstance. The entire University community will benefit from their expertise."

Among the nation's oldest and most respected universities, the University of Pennsylvania was founded in 1740 by a group that included Benjamin Franklin. It is one of eight institutions in the Ivy League, with more than 21,869 students studying in its undergraduate, graduate and professional programs.

Founded in 1948, Trammell Crow Company has 140 offices in the U.S. and Canada and manages over 270 million square feet of commercial real estate. The company's primary businesses include infrastructure management, property management, brokerage, development and construction, and retail services. Trammell Crow Corporate Services is a wholly owned subsidiary of Trammell Crow Company specializing in infrastructure management.