Kennedy-Wilson International Sells Minority Interest in Japanese Subsidiary

Press Release
December 13, 2000
BEVERLY HILLS, CA -- Kennedy-Wilson, Inc. (Nasdaq: KWIC), an international diversified real estate services and investment company, announced yesterday that is has sold a minority interest in its majority-owned Japanese subsidiary, Kennedy-Wilson Japan.

A total of 3.5 percent of outstanding stock of Kennedy-Wilson Japan was purchased by three Japanese companies: Orix Corporation, a premier leasing and financial services company; The Chuo Mitsui Trust and Banking Co., one of Japan's most prominent trust banking operations; and HUMAX Corporation, a leading retail real estate and restaurant company.

``This sale is part of Kennedy-Wilson Japan's integration and growth strategy,'' explained Richard Mandel, President of the Commercial Group at Kennedy-Wilson. ``We are pleased to have these three dynamic new shareholders in our company.''

Over the last seven years, Kennedy-Wilson Japan has developed a successful business in real estate investment, brokerage, advisory, due diligence and asset management. The firm is one of the most active investors in both office properties and non-performing loans in Japan and also owns a loan servicing company called Pacific Servicing. Kennedy-Wilson Japan and its subsidiaries employ over 100 employees in the country, making it the largest U.S. real estate company in Japan.

Founded in 1977, Kennedy-Wilson is a diversified international real estate services firm. It provides real estate investment sales, property management and leasing services, construction management, development and acquisition, and technical consulting services worldwide through its offices in Los Angeles, San

Francisco, New York, Chicago, Washington D.C., Dallas, Austin, Houston, Minneapolis, Tokyo and Hong Kong. As the premier U.S.-based real estate services firm in Japan, Kennedy-Wilson provides brokerage, management and investment services to Japanese and international investors from its six offices throughout the country, including Tokyo, which serves as a regional headquarters.

This release may contain forward-looking statements as well as historical information. Statements of goals and strategies and words such as ``plan'', ``believe'', `` anticipate'', ``expect'', ``objectives'', ``forecast'' and ``predict'', and other similar words are intended to identify forward-looking statements. These forward-looking statements, which are included in accordance with the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995, involve risks, uncertainties and other factors that may cause the company's actual results performance or financial condition to be materially different from any results, performance or financial condition suggested by the statements in this release.

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Contact: 

     Rubenstein Associates, Inc. Public Relations, New York
     Catherine Carbonaro, 212/843-8035