INDIANAPOLIS, Feb. 5 /PRNewswire-FirstCall/ -- Kite Realty Group Trust (NYSE: KRG) ("the Company") announced today that it has entered into a development agreement with the University of Notre Dame to pursue the development of approximately 26 acres owned by the University located south of the football stadium.

Under the agreement, Kite Realty Group has the exclusive right to prepare and implement a plan for the development of a mixed-use project located south of the Eddy Street and Angela Boulevard intersection. The Company is pursuing a plan that would combine a vibrant retail center, a full service hotel, office space, and a unique blend of condominiums, townhouses, and apartments. This development is expected to total in excess of 500,000 square feet.

Thomas K. McGowan, the Company's Executive Vice President and Chief Operating Officer stated, "Kite Realty Group is extremely pleased to have been chosen by Notre Dame as the preferred developer for this very important gateway project. This is a wonderful opportunity for us to develop a project that will simultaneously serve the University and the community."

This development is the first phase of a larger redevelopment proposed by the University and other groups for the area south of the Notre Dame campus. These additional components could include a technology park, single family homes, and additional retail and services.

Dr. John Affleck-Graves, Notre Dame's Executive Vice President said that when it is complete, the development "will revitalize the neighborhood at the University's 'front door' and provide modern housing and commercial businesses within easy walking distance of campus, filling a decades-long void."

"This development," he added, "is an integral part of Notre Dame's continued commitment to creating a better connection between the campus and the community. The University and the Board of Trustees are pleased to have teamed with a seasoned developer in Kite Realty Group, and we are eager to continue working with Kite to guide these plans from concept to reality."

About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, expansion and development of high quality neighborhood and community shopping centers in selected growth markets in the United States. The Company owns interests in a portfolio of operating retail properties, retail properties under development, operating commercial properties, a related parking garage, and parcels of land that may be used for future development of retail or commercial properties.

Safe Harbor Statement

Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks; property ownership and management risks; the level and volatility of interest rates; financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, which discusses these and other factors that could adversely affect the Company's results. Except as otherwise required by the federal securities laws, the Company assumes no liability to update the information in this press release.

SOURCE Kite Realty Group Trust

Contact: Dan Sink, Chief Financial Officer of Kite Realty Group Trust, +1-317-577-5609, or dsink@kiterealty.com; or Investors-Media, John Waelti of Financial Relations Board, +1-312-640-6760, or jwaelti@frbir.com