Sterling Bank to Consolidate Central Departments to Thomas Properties' Brookhollow Central Office Campus

Business Wire, Jan 18, 2008

HOUSTON -- Thomas Properties Group, Inc. (Nasdaq: TPGI) has signed Sterling Bank to a 20-year lease for 211,343 square feet at the Brookhollow Central office campus. Sterling Bank is a subsidiary of Sterling Bancshares, Inc. (Nasdaq: SBIB) with $4.4 billion in assets and 49 locations across Texas. The three-building Brookhollow Central is owned by TPG/CalSTRS, a joint venture between Thomas Properties Group and the California State Teachers' Retirement System.

"Currently our central departments and corporate offices operate out of five different facilities in various locations around Houston," said Sterling Bancshares Chairman, President and CEO J. Downey Bridgwater. "With this agreement we will be able to consolidate a number of bank operations including our corporate offices at one convenient location which will help us be more efficient and enable our team to more effectively serve our customers. Brookhollow Central is located in a central area of Houston, easily accessed from throughout the region, and we are very excited Brookhollow Central will be our new home."

Sterling Bank will take 118,986 square feet in Brookhollow Central II and 92,357 square feet of Brookhollow Central III. Sterling Bank will have signage atop the 14-story Brookhollow Central II tower. Sterling will take a phased occupancy of the two buildings between 2008 and 2010.

"Sterling Bank is a leading financial institution and one of Houston's premier businesses. It is a very strong addition to the roster of top companies that are located at our Brookhollow Central campus," said James A. Thomas, chairman and CEO, Thomas Properties Group.

With the addition of Sterling Bank, Brookhollow Central II and III are 98 percent and 78 percent leased, respectively. TPG - Colvill, the firm's alliance with Colvill Office Properties, manages leasing at Brookhollow Central and all of Thomas Properties' Houston office portfolio. Thomas Properties Group recently announced it has posted record high occupancies of more than 98 percent at three of its Houston office properties, which total more than three million square feet of premier Class A space.

Brookhollow Central is a three-building, 800,000-square-foot campus conveniently located in Northwest Houston on a 10-acre site at Highway 290 and the 610 Loop. Brookhollow Central I, an 11-story building, was built in 1972. Brookhollow Central II, a 14-story building, was built in 1979, and Brookhollow Central III, a 12-story building, was completed in 1981. Businesses within the campus have access to auditoriums and conference facilities for expanded team meetings. The property also offers a variety of services, including a sundry shop and delicatessen. Brookhollow Central is adjacent to the Sheraton Houston Brookhollow hotel. The hotel recently underwent a $6 million renovation and provides conferencing center space and other convenient amenities for Brookhollow Central tenants.

Thomas Properties Group is investing over $20 million in a comprehensive updating of the Brookhollow Central office campus. Thomas has commenced a facade renovation for Brookhollow Central II and III that will significantly enhance the exterior with a new color scheme of contemporary silver and gray. TPG has also retained Houston-based architects Ziegler Cooper Architects to design a new exterior wall for Brookhollow Central I. The firm has begun replacement of the existing Brookhollow Central I window system with a new curtainwall, featuring modern energy-efficient glazing that will complement the new facades of Brookhollow Central II and III. Throughout the campus new landscaping will create more inviting gathering spaces, add to its pedestrian appeal and when coupled with new signage, establish a stronger street-level presence. Building floor common areas will be updated with modern materials and finishes as well as other capital improvements. A new fitness center, with men's and women's locker rooms, is also planned for the enjoyment of Brookhollow Central tenants.

The Colvill Office Properties leasing team representing Thomas Properties Group in Houston includes Chip Colvill, Michael Anderson, and Win Haggard Jr. Sterling Bank was represented by Tom McKenzie and Bruce Fehn of UGL Equis and Mark Nicholas of The Staubach Company. Chanse McLeod of Andrews Kurth LLP represented Thomas Properties Group in legal negotiations while Steve Jacobs of Locke Lord Bissell & Liddell LLP represented Sterling Bank.

About Sterling Bank

Sterling Bancshares, Inc., is a Houston-based bank holding company with total assets of $4.4 billion and operates 49 banking centers in the greater metro areas of Houston, San Antonio and Dallas, Texas. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "SBIB."

About Thomas Properties Group

Thomas Properties Group, Inc., based in Los Angeles, is a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use and residential properties on a nationwide basis. The company's primary areas of focus are the acquisition and ownership of premier properties, both on a consolidated basis and through its strategic joint ventures, property development and redevelopment, and property management activities. The company seeks to capitalize on opportunities for above-average risk-adjusted investment returns from real estate ownership, while managing the volatility associated with the real estate industry through joint-venture ownership structures. For more information on Thomas Properties Group, Inc., visit www.tpgre.com.