TrizecHahn Corporation (“TZH”) today
announced that The Boeing Company signed an agreement to lease 157,000 square
feet of space at 3700 Bay Area Boulevard in Houston’s Clear Lake area. This
Class A office space will serve as the new headquarters for Boeing’s
International Space Station Program for the next seven years.

“We were looking to consolidate our existing Houston operations under one
roof,” said Bill Richard, Sr. Manager, Facilities Boeing, Houston. “We needed
a first-rate facility to meet our current needs with the flexibility to allow
for future growth, while still being strategically located near the Johnson
Space Center. TrizecHahn learned of our needs and approached us with the
perfect solution – their Bay Area Boulevard property.”

This TZH property is a 399,000 square-foot, six-story office building
situated on 21 acres with easy access to Interstate 45 and the Sam Houston
Tollway. The site will soon house 840 employees and become Boeing’s second
largest office in the Houston area.

“We are pleased to have met the needs of Boeing and look forward to
having this giant in the aerospace industry, and the Houston business
community, as a tenant for many years to come,” said Paul Layne, Senior Vice
President for TrizecHahn Office Properties, which owns 6.6 million square feet
of office space in the greater Houston area. “This agreement exemplifies
TrizecHahn’s solution-oriented approach to finding the right fit for potential
tenants in each of our markets.”

In addition to 3700 Bay Area Boulevard, TZH’s Houston properties include
the Allen Center (3.2 million square feet) and the Cullen Center (3.0 million
square feet), in which Continental Airlines, ENRON and Kellogg Brown and Root
are tenants. TZH’s Houston properties are performing exceptionally well in
2001, with year-end occupancy targeted at 97% up from 94% at the end of last

With 50 million square feet of Class A office space nationwide, a
cornerstone of TrizecHahn’s success is its ability to provide its national
tenants with multiple solutions in metropolitan areas across the U.S.

TrizecHahn Corporation, one of the largest public real estate companies
in North America, has ownership interests in and manages a high-quality
portfolio of 78 U.S. office properties totaling 50 million square feet
concentrated in the central business districts of seven major cities. It also
has interests in retail/entertainment properties in the United States and
Europe, a global technology center business, and properties in Canada. The
Company trades on the New York and Toronto stock exchanges under the symbol
TZH. For more information about the Company, including a fact book of
supplemental operating and financial data, visit the TrizecHahn web site at or call-1-800-891-7017.

This news release of the Corporation contains forward-looking statements
relating to the Corporation’s business and financial outlook, which are based
on the Corporation’s current expectations, estimates, forecasts and
projections. These statements are not guarantees of future performance and
involve risks, uncertainties, estimates and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ materially from
those expressed in these forward-looking statements. Readers, therefore,
should not place undue reliance on any such forward-looking statements.
Further, any forward-looking statement speaks only as of the date on which
such statement is made, and the Corporation undertakes no obligation to update
any such statement to reflect new information, the occurrence of future events
or circumstances or otherwise. A number of important factors could cause
actual results to differ materially from those indicated by the forward-
looking statements. Included among these factors are changes in general
economic conditions, including changes in the economic conditions affecting
industries in which our principal tenants compete, economic, technological and
business conditions specific to the Internet industry which impact demand by
tenants of our technology center business, our ability to timely lease or re-
lease space at current or anticipated rents, our ability to achieve economies
of scale over time, the demand for tenant services beyond those traditionally
provided by landlords, changes in interest rates, changes in operating costs,
changes in environmental laws and regulations and contamination events, the
occurrence of uninsured or underinsured events, our ability to attract and
retain high quality personnel at a reasonable cost in a highly competitive
labor environment, future demand for our debt and equity securities, our
ability to refinance our debt on reasonable terms at maturity, our ability to
complete current and future development projects on time and on schedule, the
possibility that income tax treaties may be renegotiated, with a resulting
increase in the withholding taxes applicable to our U.S. REIT, market
conditions in existence at the time we sell assets, and joint venture and
partnership risks. Such factors include those set forth in more detail in the
Risk Factors section in the Corporation’s Annual Report on Form 40-F filed
with the U.S. Securities and Exchange Commission and the Corporation’s Annual
Information Form filed with the Canadian securities regulators.