Deal Represents Largest Biotechnology Transaction in the History of San Francisco

South San Francisco, Calif., and San Francisco, Calif. - September 27, 2006 - FibroGen, Inc. and Shorenstein Properties LLC today announced the companies have entered into a long-term property lease providing FibroGen with approximately 239,000 square feet at 409 Illinois Street in Mission Bay.

FibroGen, a privately-owned biotechnology company currently based in South San Francisco, plans to move its headquarters and research and development operations to the Mission Bay site in the fourth quarter of 2008. FibroGen will be the largest biotechnology company to move into Mission Bay since the City began to actively develop its biotech cluster in 2005. In late 2005, the city passed the Biotech Payroll Tax Exemption, a move championed by Mayor Gavin Newsom and Supervisor Michela Alioto-Pier, which provided a key incentive to FibroGen to move to Mission Bay.

"FibroGen has superior private backing and an unparalleled leadership role in research and development of therapies for a wide range of life-threatening diseases," said Douglas Shorenstein, Chairman & CEO of Shorenstein Properties LLC. "We are delighted with FibroGen's decision to move to Mission Bay and we look forward to providing this highly innovative company with world class space in which to continue its important work."

"Due to increasing clinical activity and the continuing expansion of our research into new areas, FibroGen is on an aggressive growth track over the next several years," said Thomas B. Neff, CEO of FibroGen. "It was important for us to identify a location that can appropriately address our projected growth and provide a fertile environment for continued scientific innovation and translation of our discoveries into medical practice. We were actively recruited to come to San Francisco by Mayor Newsom and found that the Mission Bay community is ideally suited to meet our needs. Without question, the City's biotech payroll tax exemption coupled with the regulatory environment in Mission Bay helped make this deal possible."

"This is a tremendous day for Mission Bay. FibroGen is the largest company to date to make a commitment to San Francisco and will be bringing over 200 biotech jobs to Mission Bay," said Mayor Gavin Newsom. "We have been working closely with FibroGen for many months and their decision to relocate to San Francisco is a direct result of our targeted, comprehensive strategy to attract major biotech to Mission Bay," said Newsom.

FibroGen has advanced several internally developed drugs into clinical testing including: oral therapies for anemia and treatment of ischemic disease and a therapeutic antibody, which is being tested in fibrotic diseases, progressive diabetic diseases, including nephropathy and vascular co-morbidities, as well as pancreatic cancer. FibroGen currently has 190 full time personnel.

"We believe that Mission Bay can meet FibroGen's need for increasing scale while providing us a unique opportunity to expand access to leading clinical experts and academic researchers in a variety of medical specialties," said Mr. Neff. "Our employees will also benefit from working in a custom designed state-of-the-art research facility located adjacent to the central transportation hub of the Bay Area. Shorenstein Properties has exemplified visionary leadership on this project, and we look forward to continuing our partnership with them and continuing to develop our relationship with the City in the months and years to come."

409 Illinois Street is part of a two-building life science campus development planned by Shorenstein Properties for a 3.8-acre parcel of waterfront land the real estate investment company acquired last year as part of the Mission Bay master-planned development. The site leased to FibroGen is located two blocks from the University of California San Francisco (UCSF) Mission Bay teaching and research campus, has close proximity to the financial district, and offers unobstructed views of the San Francisco Bay. The second building at 499 Illinois Street will total approximately 211,000 square feet, and will be available expansion for FibroGen.

Shorenstein Properties and its development manager, SKS Investments, will commence construction on the buildings this fall. The development team also includes Dowler-Gruman Architects and Hathaway Dinwiddie Construction Company.

Randy Scott, Executive Vice President of Cornish & Carey Commercial's Palo Alto office represented FibroGen in the lease negotiations. Charles Malet, Executive Vice President, and Vice Presidents Tom McDonnell and Jim Collins of Shorenstein Realty Services, L.P. represented Shorenstein Properties.

About Mission Bay

San Francisco is actively expanding the biotechnology sector at Mission Bay, currently a central location for medical research associated with UCSF, its affiliates, and other private and public entities. UCSF Mission Bay campus is being built in phases over the next 15 to 20 years and is expected to become home to over 9,000 researchers and staff. UCSF also has plans to build state-of-the-art technologically advanced patient care facilities at Mission Bay. Other affiliates of UCSF located at or next to the Mission Bay site include: The California Institute of Quantitative Biology (QB3), a cooperative venture among UCSF, UC Berkeley, UC Santa Cruz and private industry, which is focused on the application of the quantitative sciences - mathematics, physics, chemistry and engineering - to biomedical research; The Gladstone Institute, a private research institution focused on cardiovascular disease, immunology, virology and neurological disease; and The California Institute of Regenerative Medicine (CIRM), the State's $3 billion stem cell research initiative. The Mayor and the Board of Supervisors were instrumental in supporting the City's successful bid to provide a permanent home near Mission Bay for CIRM.

About Shorenstein Properties

San Francisco-based Shorenstein Properties LLC (www.shorenstein.com) is one of the oldest and most successful private real estate investment companies active throughout the United States in the acquisition, development, ownership and management of high quality office properties. Since its beginning in 1924, the company has evolved from a regional real estate operating company to an active national investor and manager of commingled institutional capital. Since 1992, Shorenstein has sponsored eight closed-end real estate investment funds. Shorenstein's substantial co-investment, integrated investment and operating strategy and strong performance have positioned the company as an experienced leader in the value-added arena.

About FibroGen

FibroGen, Inc. is a biotechnology-based drug discovery company using its expertise in the fields of tissue fibrosis, connective tissue growth factor (CTGF), and hypoxia-inducible factor (HIF) biology to discover, develop, and commercialize novel therapeutics for fibrotic disorders, diabetic complications, anemia, ischemic disease, cancer, and other areas of unmet medical need. FibroGen also develops and produces recombinant human collagens and gelatins using unique production technology that provides the basis for FibroGen's proprietary cosmetic dermal filler and biomaterials supply business.

For more information about FibroGen, Inc., please visit www.fibrogen.com.

Contact for FibroGen:
Laura Hansen, 650-866-7828, lhansen@fibrogen.com

Contact for Shorenstein Properties LLC:
Andrew Neilly, Gallen.Neilly & Associates 925.930.9848, andrew@gallen.com