Company News

Kennedy Wilson raising $40 Million through Issuance of Preferred Shares

Management and Outside Stockholder Purchase 20% of Offering - CEO Closes Purchase of $5 Million Preferred Shares

BEVERLY HILLS, CA — (May 6, 2008) ) Kennedy Wilson, Inc., an international real estate investment and services firm announced today that it is raising $40 million through the issuance of preferred stock.

The shares will be entitled to a 7% cumulative annual preferred dividend and must convert to common stock at $42 per share within three years. The stock currently trades at $40 per share. Senior management and its largest outside shareholder will be purchasing $7.5 million of the preferred stock offering of which William J. McMorrow, Chief Executive Officer of Kennedy Wilson, Inc., will personally invest $5 million. He closed his purchase on May 5, 2008.

Mr. McMorrow stated, “We have historically generated very high rates of return from all of our investment activities. We are uniquely positioned to take advantage of the current opportunities in all sectors of the real estate investment business. In addition, our services platform led by our real estate auction business should have a record year in 2008”.

Kennedy Wilson has established various investment funds and strategic alliances with the intention of acquiring assets totaling $3 billion over the next three years. The equity requirement to accomplish this goal is $1 billion, of which Kennedy Wilson\'s investment share will amount to approximately $100 million.

Kennedy Wilson believes that the significant restructuring now underway in almost every real estate asset class presents a historic profit-making opportunity similar to that which existed in the early 1990's for those companies which can move prudently and quickly. In order to take advantage of this opportunity, the company intends to have available $200 million of cash which will be generated from its asset sales, unused lines of credit and the proceeds from the preferred stock offering.

Founded in 1977, Kennedy Wilson is a real estate services and investment firm headquartered in Beverly Hills, CA, with 20 offices throughout the U.S. and Japan. It seeks opportunities in partnership with clients in pursuit of above-market investor returns and higher real estate values. The company is actively involved in the acquisition, asset management, operation, rehabilitation, repositioning and disposition of real estate assets. Visit www.kennedywilson.com for further information.