FOR IMMEDIATE RELEASE

                                For Further Information Contact:

                                        J. GREGORY KASUN, PRESIDENT AND CEO
                                        Telephone:  (619) 450-3135






                       MISSION WEST PROPERTIES ANNOUNCES
                                 TERMINATION OF
                      AGREEMENT TO SELL REAL ESTATE ASSETS




   SAN DIEGO, CALIFORNIA, February 3, 1995 -- Mission West Properties (ASE/PSE:
MSW) today announced that Bedford Property Investors, Inc., had terminated the
previously-announced agreement to buy substantially all of the Company's real
estate assets.  In commenting on the development, J. Gregory Kasun, President
and Chief Executive Officer of Mission West Properties, stated, "Bedford
Property Investors exercised its right to terminate the transaction during the
due diligence period provided under the definitive agreement.  While we had
looked forward to a conclusion of the sale, we will now move forward to pursue
other appropriate options to maintain and enhance shareholder value.  Most
importantly, we believe our balance sheet continues to be strong and we have the
ability to continue to hold our properties for the long term."

      Mission West Properties owns and operates income properties that are
located primarily in Southern California.