NEWS RELEASE
 
 

                  UPDATE ON STATUS OF BROOKFIELD BUILDINGS
                      ADJACENT TO WORLD TRADE CENTER SITE
 

New York, New York ? September 12, 2001 (8:00 PM ETN) (BPO: NYSE/TSE) ? Following a preliminary
technical investigation by independent structural engineers of its properties adjacent to the World Trade Center site,
Brookfield Properties Corporation confirms there is no structural damage to its buildings.

The buildings include One Liberty Plaza and Towers One, Two and Four of the World Financial Center.

Despite media reports to the contrary, One Liberty Plaza has suffered no structural damage. Although each of the
buildings will require work such as window and lobby repairs, none of the damage renders the buildings inoperable.

Brookfield also confirmed that it has adequate insurance to cover any property damage.

Subject to restoring electrical power to the area and obtaining the necessary clearances from appropriate authorities,
the buildings can be occupied and functioning very quickly.

Brookfield personnel remained on site throughout the crisis to ensure mechanical and other building facilities were
properly protected following the loss of electrical power. The Company has received tremendous support from all
parties involved, including the offices of Governor Pataki and Mayor Giuliani.

"Our hearts and our prayers go out to all those who have been impacted by this tragedy and we offer our deeply felt
condolences to their families", said John Zuccotti, Deputy Chairman of Brookfield Properties.

                                       * * * * * * * * * * * *

Brookfield Properties Corporation, with over US$8 billion in assets, owns, develops and manages premier North
American office properties. Brookfield also operates real estate service businesses and develops residential
master-planned communities. The Brookfield portfolio spans 60 commercial properties and development sites
totaling 46 million square feet. Brookfield is inter-listed on the New York and Toronto Stock Exchanges under the
symbol BPO. For more information, visit the Brookfield Properties website at www.brookfieldproperties.com.

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Contact Information

Katherine C. Vyse
Senior Vice President, Investor Relations and Communications                                   Summary
Brookfield Properties Corporation
Tel: (416) 369-8246
Fax: (416) 865-1288
Email: kvyse@brookfieldproperties.com