PRESS RELEASE

Vornado to Acquire Boston Design Center

September 26, 2005

PARAMUS, N.J.--(BUSINESS WIRE)--Sept. 26, 2005--Vornado Realty Trust (NYSE:VNO) today announced that it has entered into an agreement to acquire the Boston Design Center which contains 552,500 square feet located in South Boston and which will be operated by the Company's Merchandise Mart division. The purchase price is approximately $96 million, consisting of $24 million in cash and the assumption of an existing $72 million mortgage.

The sale, which is expected to close by the second quarter of next year, is subject to customary closing conditions.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

    CONTACT: Vornado Realty Trust
             Joseph Macnow, 201-587-1000

    SOURCE: Vornado Realty Trust