Vulcan Inc. and Schnitzer Northwest Sign on Merck & Co. to Lease 133,173 Square Feet in South Lake Union for Research Facility

Business Wire, August 2, 2002

Business Editors, Real Estate/Biotechnology Writers

SEATTLE--(BUSINESS WIRE)--Aug. 2, 2002

Joint venture partners, Vulcan Inc. and Schnitzer Northwest today announced that Rosetta Inpharmatics, a wholly-owned subsidiary of Merck & Co., Inc. (NYSE:MRK), have leased 133,173 square feet of laboratory and office space at the Interurban Exchange project located in the South Lake Union area.

"The decision by Merck to lease a major portion of the Interurban Exchange project proves the viability of Vulcan's vision for South Lake Union as a vibrant and diverse neighborhood that attracts world-class organizations," said Ada Healey, vice president of real estate for Vulcan.

"This is great news for Seattle. I welcome Merck to Seattle and to the South Lake Union neighborhood. Merck represents another major partner helping establish Seattle as a biotech hub. This decision will create family-wage jobs and a partnership between Vulcan, Merck and the South Lake Union community to create a vibrant neighborhood for people to work, live and shop," said Seattle Mayor Nickels.

"Having Merck as our initial tenant is an excellent way to launch the Interurban Exchange project," said Dan Ivanoff, managing partner of Schnitzer Northwest. "We believe that other industry-leading organizations will be attracted by our unique combination of location, character and amenities."

Interurban Exchange, a 500,000-square-foot redevelopment project, is a joint venture between Vulcan Inc and Schnitzer Northwest. Merck will consolidate its Kirkland and Bothell, Wash. operations into Exchange III upon completion of the facility, scheduled for early 2004. The new facility will provide more than 50 percent additional laboratory and office space and allow the company to increase the highly skilled workforce in its Seattle research facility from 230 current employees to approximately 300 employees by the end of 2005.

The four-building project is located on Terry Avenue North between Harrison Street and Mercer Street and is part of approximately 50 acres owned by Vulcan Inc. in Seattle's South Lake Union neighborhood.

Vulcan's vision for South Lake Union is to partner with the community to encourage a vibrant, connected neighborhood that blends housing, retail, office, biotechnology, open space, public transportation, culture and education.

Other research companies in the South Lake Union neighborhood include Seattle Biomedical Research Institute, Fred Hutchinson Cancer Research Center and ZymoGenetics, Inc.

Development of the three remaining buildings at Interurban Exchange is scheduled to begin in 2003 with completion expected in 2005. The architectural design of the project will reflect the industrial heritage of the neighborhood and will include a 14,000-square-foot tenant amenity building featuring video conferencing capabilities, state-of-the-art conference room, fully equipped fitness facility and an open 21,000-square-foot landscaped plaza accessible to the community.

NBBJ served as the project architect and Lease Crutcher Lewis as the general contractor. Tom Erlandson of Alexander Commercial Real Estate represented Merck in the transaction and Stuart Williams, Jeff Durrell and Bill Pollard with Pacific Real Estate Partners represented Vulcan and Schnitzer Northwest.

About Vulcan Inc.

Vulcan Inc. creates and advances a variety of world-class endeavors and high-impact initiatives that change and improve the way people live, learn, do business and experience the world. Founded in 1986 by investor and philanthropist Paul G. Allen, and under the direction of president and CEO Jody Patton, Vulcan oversees various business and charitable projects including real estate holdings, investments in more than 100 companies -- from Charter Communications, DreamWorks SKG and Digeo Broadband to TechTV, and the Sporting News -- the Seattle Seahawks NFL and Portland Trail Blazers NBA franchises, First & Goal Inc., Clear Blue Sky Productions, the Seattle Cinerama Theatre, Experience Music Project and the six Paul G. Allen Foundations.

About Schnitzer Northwest

Award winning Schnitzer Northwest is one of the Pacific Northwest's leading commercial real estate investment and development companies. Founded in 1997 by Dan Ivanoff and Schnitzer Investment Corporation, it has developed and leased over 1.5 million square feet of Class A office space and 220,000 square feet of luxury multi-family units and currently manages more than 8 million square feet of office and industrial properties in the Puget Sound and Portland markets. Its current development pipeline includes 500,000 square feet of office space in Seattle, 1.9 million square feet of office, hotel and retail in Bellevue, Wash. and 200,000 square feet in Bothell, Wash.

About Merck & Co., Inc.

Merck & Co., Inc., headquartered in Whitehouse Station, New Jersey, is a leading research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures.