Boston Properties to Sell Ownership Interest in Times Square Tower

Boston Properties, Inc.

, a real estate investment trust, announced that it has entered into a binding purchase and sale agreement to sell a 45% interest in the ground leasehold interest and related tax credits in Times Square Tower to an affiliate of Norges Bank for a gross purchase price of $684 million in cash. The property is unencumbered by debt. Boston Properties and an affiliate of Norges Bank will form a joint venture upon closing, and Boston Properties will retain property and leasing management for the venture. The closing is subject to customary closing conditions and there can be no assurance that the sale will be completed on the terms currently contemplated or at all. Assuming the closing occurs as contemplated, the Company currently expects that it would distribute at least the amount of proceeds necessary to avoid paying a corporate level tax on the gain realized from the sale.