Institutional Shareholder Services Recommends Whitestone REIT Shareholders Vote "For" KBS Nominees Kenneth Fearn And David Snyder And "For" The Proposal To Declassify The Board Of Trustees

NEWPORT BEACH, Calif., May 4, 2018

ISS decided that "change in the board level is needed" and recommended that shareholders vote for Kenneth Fearn and David Snyder after reviewing a host of publicly filed materials and speaking with both KBS and Whitestone.

In particular, ISS noted, "The dissident has presented a number of arguments that, as a whole, suggest that change at the board level is needed: the company's plan to reduce its G&A/revenue ratio, which is well above peers' ratio, appears overly ambitious in light of recent performance; the company's executive pay program remains problematic despite shareholder opposition in prior years; and the company has maintained shareholder-unfriendly corporate governance practices, such as not permitting shareholders to amend the bylaws. In light of such concerns, and the fact that both dissident nominees bring significant direct, industry experience to a board which appears deficient in that area, votes FOR dissident nominees Fearn and Snyder on the BLUE card are warranted."

Peter McMillan, Chief Executive Officer of KBS, said, "We are pleased that ISS has recognized the need for change at Whitestone. As highlighted by ISS, Whitestone is facing significant issues that directly impact shareholder value and the best interests of the Company moving forward. We strongly believe that Kenneth Fearn and David Snyder will bring independence, judgment and much needed critical perspective to Whitestone's Board."

"We encourage our fellow shareholders to vote the Blue Card, as voting the Blue Card is the only way to ensure that both Kenneth Fearn and David Snyder are elected to Whitestone's Board," Mr. McMillan concluded.

Vote the BLUE proxy card today to elect Kenneth Fearn and David Snyder. 
Learn More about KBS's Campaign @ www.enhancewhitestone.com

If you have any questions or require any assistance with your vote, please contact Morrow Sodali at 800-662-5200 or kbs@morrowsodali.com