MEDIA ARTS MOVES INTO MADRONE BUSINESS PARK, TOENISKOETTER & BREEEDING TO START NEW BUILDING

MORGAN HILL - Media Arts Group, Inc., which manufactures and markets the art of Thomas Kinkade and others, has consolidated its San Jose headquarters and operations into a 343,000-square-foot campus in the Madrone Business Park in Morgan Hill. This fall, Toeniskoetter & Breeding, Inc. (TBI) will begin construction on a fourth building for the New York Stock Exchange-listed company.

During three weeks starting in early July, Media Arts occupied its 61,000-square-foot headquarters at 900 Lightpost Way, an adjacent production facility of 155,000 square feet and a distribution facility of 127,000 square feet located nearby on the Madrone Parkway.

“The fourth building of 56,000 square feet, is to house both production and distribution,” said Brad Krouskup, president of Toeniskoetter and Breeding, Inc. Development. “Like the rest of the Media Arts campus, it will be designed to integrate the Kinkade concept into a functional work environment. Completion is scheduled for June, 2002.”

Media Arts Group, Inc. (NYSE: MDA) is a leading designer, manufacturer, marketer and branded retailer of art-based home decorative accessories, collectibles and gift products. The company’s primary products are canvas and paper lithographs that feature Mr. Kinkade’s unique use of light and his peaceful and inspiring themes. The company had previously been located in smaller buildings on Charcot Avenue in San Jose.

Toeniskoetter & Breeding, Inc. Construction, which built the Media Arts buildings, expects to complete construction in the middle of October of two buildings totaling 160,000 square feet in the Madrone Business Park for Condor Systems. Condor is a manufacturer of electronic warfare products for the military and intelligence communities. It employs 400 people on Samaritan Drive in San Jose and will transfer its headquarters, research and development and manufacturing to Morgan Hill.

In December, TBI Construction expects to complete a 152,000-square-foot headquarters in the business park for contract manufacturer Paramit Corp., which is also moving to Morgan Hill from San Jose.

Two Marriott hotels are also nearing completion in the Madrone Business Park near the intersection of Cochrane Road and Highway 101. A Courtyard by Marriott will be completed this summer, and a Marriott Residence Inn will be completed in the fall.

Toeniskoetter and Breeding is also developing and building two office/R&D buildings totaling 100,000 square feet for multiple tenants or corporate headquarters. Although 70% of the Madrone Business Park is being developed in its first year, building sites remain for 500,000 square feet of additional space. Krouskup said TBI is seeking both tenants and build-to-suit proposals.

The 110-acre Madrone Business Park is located on the north side of Cochrane Road between Highway 101 and Monterey Highway. Madrone Business Park is a development of TBI-Mission West LLC, an entity formed by TBI development in conjunction with Berg & Berg Enterprises and Mission West Properties, a public traded real estate investment trust (REIT).

Founded in 1983, Toeniskoetter & Breeding, Inc. Development has developed more than two million square feet of buildings and serves as managing general partner for a number of diversified real estate properties throughout Santa Clara and Santa Cruz counties. Previous projects include the 30-acre Cochrane Business Ranch, which is adjacent to the Madrone Business Park; 450 West Santa Clara Street, the O’Connor Health Center and the western headquarters for Integrated Circuit Systems, all in San Jose; Gateway Square in Campbell and Granite Creek Business Center in Scotts Valley.