Kennedy-Wilson Officers and Money Management Firm Purchase an 80,000 Share Block of Common Shares

Business Wire, August 31, 1998

LOS ANGELES, Calif.--(BUSINESS WIRE)--Aug. 31, 1998--

- Purchase represents approximately 2% of company's outstanding stock -

Kennedy-Wilson, Inc. (Nasdaq NM: KWIC), an international real estate marketing, property management, and investment company, reported today that William J. McMorrow, Lewis Halpert, Barry Schlesinger, Freeman Lyle and Tony Zimmerman, all senior executive officers of Kennedy-Wilson, Inc. have individually purchased a block of 50,000 common shares of Kennedy-Wilson in a private transaction. The seller was Fortune Far East Ltd. a subsidiary of Pioneer Industries, a major investment firm located in Hong Kong. In addition, Cahill Warnock & Partners, an investment firm located in Baltimore, Maryland, has purchased another 30,000 share block of Kennedy-Wilson common shares from Fortune. All stock was purchased at $11.00 per share. Kennedy-Wilson's officers have secured the right of first refusal for any additional sale of Kennedy-Wilson shares from Fortune Far East Ltd. who currently owns an additional 180,000 shares. Goodwin Gaw, a director of Kennedy-Wilson Inc., is also the president of Fortune Far East Ltd.

William J. McMorrow, Kennedy-Wilson's chairman and chief executive officer, commented, "With the recent successful completion of the Heitman Properties merger into Kennedy-Wilson combined with our growing alliance with Colony Capital, we are more confident about Kennedy-Wilson's future than ever. This investment reflects both our optimism about future operations as well as our view that the stock is undervalued."

Founded in 1977, Kennedy-Wilson, Inc. provides real estate marketing, property management and investment services worldwide through its offices in Los Angeles, New York, Chicago, San Francisco, Minneapolis, Washington D.C., Houston, Tokyo, Hong Kong and Jakarta.

This release contains forward-looking statements as well as historical information. Forward looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance to be materially different from any results or performance suggested by the statements in this release.

    CONTACT:  Kennedy-Wilson, Inc.- Beverly Hills
               William J. McMorrow
                     or
               Freeman A. Lyle
               310/887-6400
               Email - flyle@kennedywilson.com
               Website - www.kennedywilson.com