Exhibit 99 - ---------- Mission West Properties Description of 1994 Annual Report Page 1 Description of Annual Report front cover: computer-modified photograph, covering the entire page, of a concrete tilt-up two-story building owned by the Company with palm trees and other landscaping in the foreground. Text consists of: MISSION WEST PROPERTIES ANNUAL REPORT 1994 Description of Annual Report inside front cover: repeat of photograph contained on front cover, covering 1/3 of the page. Text consists of the President's letter, as follows: TO OUR SHAREHOLDERS For the fiscal year ended November 30, 1994, the Company reported a net loss of $1,943,000, which compares to a net loss of $1,065,000 in the previous year. The fiscal 1994 results include significant nonrecurring items comprising a $5,200,000 provision for estimated losses on real estate, $1,500,000 in revenue from the settlement of a claim related to a profits interest in a property previously sold, and a $440,000 cumulative effect from a change in accounting for income taxes. The provision for estimated losses on real estate arose as a result of entering into an agreement in November 1994 to sell substantially all of the Company's real estate assets; the agreement was terminated by the purchaser in February 1995. This adjustment represented the difference between the carrying value of the real estate and the value of the proposed transaction. We continue to actively manage our real estate projects. By maintaining the properties in a quality condition and providing superior service to tenants, the properties remain attractive from a leasing, as well as an investment, perspective. During the year, we were successful in leasing or renewing approximately 180,000 square feet of commercial office and industrial space, or 22 percent of the portfolio, with minimal expenditures for refurbishments. Portfolio occupancy averaged 84 percent during the year. It appears as though the southern California economy is improving, although modestly. We are optimistic that this improvement, combined with our efforts, will translate into increased occupancy, higher rental rates, and ultimately into increases in the value of our real estate investments. In accordance with our objectives for the long-term, we will continue to consider strategies outside our normal activities. We have the option and ability to pursue certain strategic alternatives as a result of many factors, including the quality of our projects, our cash reserves, and our stable debt position. We will continue to refine property operations and continue toward our goal of enhancing shareholder value. We appreciate your continued support. Sincerely, J. Gregory Kasun President and Chief Executive Officer 1 Exhibit 99 - ---------- Mission West Properties Description of 1994 Annual Report Page 2 Contents of the annual report consist solely of the Form 10-K filed for the year ended November 30, 1994, previously filed with the Securities and Exchange Commission via EDGAR. Description of Annual Report inside back cover: repeat of photograph contained on front cover, covering 1/3 of the page. Text consists of the following Company data: DIRECTORS LEGAL COUNSEL Michael M. Earley Pillsbury Madison President & Chief Operating Officer, & Sutro Triton Group Ltd. San Diego, California Mark G. Foletta INDEPENDENT ACCOUNTANTS Senior Vice President & Price Waterhouse Chief Financial Officer San Diego, California Triton Group Ltd. REGISTRAR/TRANSFER AGENT J. Gregory Kasun First Interstate Bank President & Los Angeles, California Chief Executive Officer Mission West Properties SECURITIES TRADED American Stock Exchange William E. Nelson Pacific Stock Exchange Chairman of the Board, Symbol: MSW Scripps Bank Newspaper Listing: MissnW President & Chief Executive Officer, Scripps Institutions of Medicine and Science John C. Stiska Chairman & OFFICERS Chief Executive Officer Triton Group Ltd. Harve Filuk Vice President Richard R. Tartre Managing Director, J. Gregory Kasun Eden Financial Group, Inc. President & Chief Executive Officer Byron B. Webb, Jr. President, Katrina L. Thompson La Jolla Savers & Mortgage Chief Financial Officer & Fund Secretary 2 Exhibit 99 - ---------- Mission West Properties Description of 1994 Annual Report Page 3 Description of Annual Report back cover: repeat of photograph contained on front cover, covering 1/2 of the page. Text consists of the following Company data: MISSION WEST PROPERTIES 6815 Flanders Drive Suite 250 San Diego California 92121-3914 619.450.3135 FAX 619.450.1618 3