TBI ENHANCING MIDTOWN REDEVELOPMENT WITH ICS HEADQUARTERS
May 26th, 1998

SAN JOSE -- Toeniskoetter & Breeding, Inc. (TBI) has demolished a landmark cannery/warehouse on Race Street and will replace it with an office/R&D building that will serve as western headquarters for Integrated Circuit Systems, Inc.

With active city and county cooperation, TBI Development was able to annex the four-acre site at 525 Race Street to San Jose, demolish the 135,000-square-foot warehouse and obtain permits for the new building in less than six months. The project is being developed by a partnership of TBI Development and members of the Del Grande and Rubino families, which have owned the property since the turn of the century. TBI Construction will break ground for the ICS building on June 1 and expects to complete construction by the end of the year.

"With 70,000 square feet of office and R&D space, the new ICS building will be a smaller but significantly higher use of the property", said Brad Krouskup, TBI executive vice president and head of TBI Development. "Well-landscaped and featuring dramatic design features and quality materials, 525 Race Street will help provide an attractive gateway to the emerging Midtown area of San Jose."

Integrated Circuit Systems is a publicly held company that focuses on the manufacture, design and marketing of mixed signal integrated circuits for frequency timing, multimedia and data communications applications. The company's Aclock chips provide critical timing capabilities for personal computers. ICS administrative headquarters are in Valley Forge, Pennsylvania; Silicon Valley operations will move to Race Street from smaller quarters on Parkmoor Avenue.

The new ICS Building has been designed by the Santa Clara regional office of ArcTec, an architectural firm based in Phoenix. The two-story building features two semi-cylindrical structures with blue-tinged glass exteriors joined by pre-cast concrete panels, providing a high-tech appearance with materials of lasting durability and style.

Krouskup said the entitlement process was speeded by efforts of San Jose's planning/economic development and public works departments, with assistance and coordination by City Councilman Frank Fiscalini, in whose District Six the project lies. The Race Street site is just outside of the City's Midtown Redevelopment Area and impacts development that city planners are encouraging within the redevelopment area.

Fiscalini said he took a special interest in the Race Street site because of its relationship both to Midtown and nearby parcels planned for industrial and residential uses.

"TBI builds outstanding buildings, and we expect the quality of the ICS building to act as a catalyst that enhances future development in the area," Fiscalini said. "The building fits very nicely not only into the City's Midtown Plan, but into plans for the properties located across Race Street. If we could get another development like this ICS building, it would be marvelous for the area."

Real estate investment partnerships with landowners are a specialty of TBI Development, which has developed 1 million square feet of office, R&D and retail property. Previous TBI partnerships with land owners include 1960 The Alameda, where TBI is headquartered; 30-acre Cochrane Business Ranch in Morgan Hill; and two projects with O'Connor Hospital, Campbell-Gateway Square and the O'Connor Health Center in San Jose.

TBI Development has developed and serves as managing general partner for a number of diversified real estate properties throughout Santa Cruz and Santa Clara counties. TBI Construction has completed more than $250 million in projects throughout the Bay Area. The company specializes in tenant improvements, historical restoration and renovation, and new buildings, for TBI's own portfolio and others. Both TBI companies were founded in 1983 and are based in San Jose.