On a sequential quarter basis, FFO for the quarter ended March 31, 2008 was approximately $0.14 per diluted common share. For the six months ended June 30, 2008, FFO decreased to $28,272,000, or $0.27 per diluted common share, from FFO of $39,859,000, or $0.38 per diluted common share, for the same period in 2007.

Termination fees and security deposit forfeitures income relating to lease terminations accounted for approximately $1,921,000, or $0.02 per diluted common share, and $10,475,000 (including $198,000 of security deposit forfeitures), or $0.10 per diluted common share, for the six months ended June 30, 2008 and 2007, respectively. Write-off of an above market lease intangible asset against income relating to one lease termination accounted for approximately $3,619,000, or ($0.03) per diluted common share, for the six months ended June 30, 2007.

Net income per diluted share to common stockholders was $0.07 for the quarter ended June 30, 2008 compared to $0.10 for the quarter ended June 30, 2007, a per share decrease of approximately 30%. For the six months ended June 30, 2008, net income per diluted share to common stockholders was $0.16, down from $0.27 a year ago, a per share decrease of approximately 40.7%.

Termination fees and security deposit forfeitures income relating to lease terminations accounted for approximately $0.02 and $0.10 per diluted common share for the six months ended June 30, 2008 and 2007, respectively. Write-off of in-place lease intangible assets against income relating to two lease terminations accounted for approximately ($0.04) per diluted common share for the six months ended June 30, 2007. -- Mission West Properties, Inc.