Carl E. Berg Releases Shareholder Objection To Change Of Control Agreements To The Board Of Directors Of Stratus Properties Inc.

CUPERTINO, Calif., Jan. 19, 2016

Regarding his letter to the Stratus directors, Mr. Berg said: "The Stratus directors' fiduciary duties impose high standards of conduct that the directors will need to meet if asked to approve new golden parachutes for Mr. Armstrong and Ms. Pickens.  Unfortunately, the Stratus stockholders have not had a golden parachute of their own.  As a result, I intend to continue reminding the directors of their fiduciary duties and urging them to meet the high standards of conduct to which they are held if they are called on to approve new or renew the current golden parachutes for Mr. Armstrong and Ms. Pickens.  Those directors will have to decide whether approving those golden parachutes and the further burden those arrangements would impose on the Stratus stockholders' assets, particularly in the event of the sale of Stratus, would truly be in the best interest of all Stratus stockholders or would be a waste of the stockholders' assets."

As previously announced, Mr. Berg sent Stratus a written notice to nominate Mr. David M. Dean and Mr. Michael Knapp for election as directors of Stratus at the 2016 Annual Meeting of Stockholders.  Mr. Berg, Mr. Dean and Mr. Knapp have filed a Schedule 13D with the Securities and Exchange Commission to report such nomination, as Mr. Berg, Mr. Dean and Mr. Knapp may now be deemed under the federal securities law to constitute a group. Such Schedule 13D is available on the SEC's website at: http://www.sec.gov/Archives/edgar/data/885508/000119312516430927/0001193125-16-430927-index.htm

Stratus is a real estate company engaged primarily in the development, management, operation and sale of commercial, hotel, entertainment, and multi- and single-family residential real estate properties located in Texas, primarily in the Austin, Texas area. 

Mr. Berg is a real estate investor and venture capitalist and was the Chief Executive Officer of Mission West Properties, a real estate investment trust, from 1997 through December 22, 2012, when that company was sold to DivcoWest, a privately owned real estate investment company.  He believes he has been Stratus' largest shareholder for almost the last 15 years.

Contact:
Carl E. Berg
10050 Bandley Drive
Cupertino, California 95014
(408) 725-0700