MERCHANDISE MART PROPERTIES, INC. TO AQUIRE

THE BOSTON DESIGN CENTER

Purchase of the Boston Design Center Extends MMPI's World-Class

Leadership Role in the Home Furnishings Industry

CHICAGO (Sept. 29, 2005) -- Merchandise Mart Properties, Inc. (MMPI) announces that its parent company, Vornado Realty Trust, has entered into an agreement to acquire the Boston Design Center from The Davis Companies.

The acquisition of the Boston Design Center will extend MMPI's leadership role in the home and commercial furnishing industries with continued growth in the design center arena. The Boston Design Center will join MMPI's thriving Chicago Merchandise Mart, The Architects & Designers Building (A&D Building) in New York City, The Washington Design Center and the L.A. Mart. Many of the same home furnishings lines in the Boston Design Center also are represented in MMPI showrooms across the country, and its represented manufacturers participate in MMPI's industry leading trade shows.

"MMPI's intimate knowledge of the marketplace makes us feel much more like a partner than a tenant," said Rachel Kohler, group president, Kohler Interiors. "As a current tenant in MMPI's Chicago, Washington. D.C. and soon to be Boston locations we consistently enjoy the benefits of being with a company who is dedicated and committed to the industries that most affect our business."

The Boston Design Center, located on Boston's waterfront, has been home to New England's leading home furnishings industry for the past 20 years. With more than 550,000 sq-ft. the Boston Design Center encompasses 84 home furnishing showrooms and more than 1,200 premium product lines with extensive choices for fabric, furniture, wall and floor coverings, lighting, home entertainment systems, accessories, and antiques, complete kitchen and design venues, and contract services. The top two floors of the Boston Design Center are currently dedicated to office space.

"For 20 years, we've built lasting partnerships with both the showrooms in the Boston Design Center and with New England's leading design, architect and contract communities, which has made us New England's leading design center," said Duncan Gilkey, president, Boston Design Center. "We believe MMPI's acquisition of the Boston Design Center will propel its success even further and we look forward to the tremendous synergy it will bring."

"The Boston Design Center is the region's leader for the finest products and services available in design today and we are happy to announce its addition to the MMPI family," said Christopher G. Kennedy, president of MMPI.

MMPI'S GROWTH

The Boston Design Center transaction complements MMPI's strategic expansion and acquisitions dedicated to creating world-class ownership and management of merchandise marts, design centers and trade shows.

Since Vornado Realty Trust acquired MMPI in 1998, the Chicago-based division has grown dramatically through internal growth, acquisitions and development projects. These include the Architects & Designers Building (A&D Building) in New York City; the Market Square Complex, the National Furniture Mart, and the additions of the Suites at Market Square and Plaza Suites - in High Point, N.C.; the One of a Kind Show® and Sales in Toronto and the Interior Design Show of Toronto; The Chicago Gift & Home MarketTM; Beckman's Handcrafted Gift Show-Chicago; The Architectural Digest Home Design Show in New York City; the L.A. Mart®; 7 W New YorkTM; and an expansion of its trade show business to Los Angeles, Toronto, New York and Atlanta.

The closing of the acquisition is expected to take place in early in the second quarter of 2006. For more information, or to schedule an interview, please contact Jackie Paulsen at 312.527.7555. For more information on MMPI, please visit www.merchandisemart.com, and for more information on the Boston Design Center, please visit www.bostondesign.com.

Merchandise Mart Properties, Inc. (MMPI) is a trade show and property management firm, specializing in managing buildings devoted to wholesale showrooms and commercial office space. MMPI produces more than 300 trade shows, market events and conferences each year.

MMPI manages The Merchandise Mart, 350 W. Mart Center, and 33 North Dearborn in Chicago; Market Square, the Suites at Market Square, Hamilton Market, Plaza Suites, Furniture Plaza and the National Furniture Mart in High Point, N.C.; the Architects & Designers Building and 7 W New York in New York; the L.A. Mart in Los Angeles; and the Washington Design Center and Washington Office Center in Washington D.C.

Vornado Realty Trust, owner of MMPI, based in New York City, is a fully integrated real estate investment trust. Vornado’s common shares are listed on the New York Stock Exchange and are traded under the symbol VNO.

MEDIA INQUIRIES ONLY:

Jackie Paulsen

Director of Public Relations

Merchandise Mart Properties, Inc.

Phone: 312.527.7555

E-mail: jpaulsen@mmart.com