PRESS RELEASE

PARAMUS, N.J.--(BUSINESS WIRE)-- Vornado Realty Trust (NYSE:VNO) announced today that it will record its 32.7% share of Toys "R" Us' first quarter financial results in its second quarter ending June 30, 2009. Vornado's results will include a net loss of $14,273,000 or $.07 per diluted share compared to a net loss of $15,811,000 or $.09 per diluted share recorded in the quarter ended June 30, 2008.

Vornado's share of negative Funds From Operations ("FFO") before income taxes for the quarter ending June 30, 2009 will be $10,164,000 or $.05 per share as compared to negative FFO before income taxes of $14,550,000 or $.08 per share in the prior year's quarter ended June 30, 2008. Vornado's share of negative FFO after income taxes for the quarter ending June 30, 2009 will be $4,155,000 or $.02 per share as compared to negative FFO after income taxes of $5,401,000, or $.03 per share in the quarter ended June 30, 2008.

The business of Toys is highly seasonal; historically, Toys' fourth quarter net income accounts for more than 80% of its fiscal year net income.

Attached is a summary of Toys' financial results and Vornado's 32.7% share of its equity in Toys' net income, as well as reconciliations of net income to earnings before interest, taxes, depreciation and amortization ("EBITDA") and FFO.

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.

Toys "R" Us, Inc.

Condensed Consolidated Statements of Operations - Unaudited

                           For the Quarter Ended

                           May 2, 2009                       May 3, 2008

                                           Results on        Results on
                           Results on a    Vornado's         Vornado's
(Amounts in thousands)     Historical      Purchase Price    Purchase Price
                           Basis           Accounting        Accounting
                                           Basis             Basis

Net sales                  $ 2,477,000     $ 2,477,000       $ 2,719,000

Cost of sales                1,587,000       1,587,000         1,742,000

Gross margin                 890,000         890,000           977,000

Selling, general and         788,000         798,100           907,100
administrative expenses

Depreciation and             93,000          101,000           107,000
amortization

Other income - net           (12,000    )    (12,000      )    (20,000      )

Total operating expenses     869,000         887,100           994,100

Operating earnings (loss)    21,000          2,900             (17,100      )

Interest expense             (94,000    )    (98,600      )    (104,000     )

Interest income              2,000           2,000             7,000

Loss before income taxes     (71,000    )    (93,700      )    (114,100     )

Income tax benefit           31,000          39,100            51,200

Net loss                     (40,000    )    (54,600      )    (62,900      )

Less: Net loss
attributable to              5,000           5,000             8,500
noncontrolling interest

Net loss attributable to   $ (35,000    )  $ (49,600      )  $ (54,400      )
Toys "R" Us, Inc.

Vornado's 32.7% equity in                  $ (16,220      )  $ (17,798      )
Toys' net loss

Management fee from Toys,                    1,571             1,447
net

Interest income on credit                    376               540
facility

Total Vornado net loss
from its investment in                     $ (14,273      )  $ (15,811      )(1)
Toys

See page 3 for a
reconciliation of net
income to FFO.

Reconciliation of
Vornado's net income from
its
investment in Toys to
EBITDA (2):

Net loss                                   $ (14,273      )  $ (15,811      )

Interest and debt expense                    31,521            33,906

Depreciation and                             31,754            34,034
amortization

Income tax benefit                           (11,630      )    (15,097      )

Vornado's 32.7% share of                   $ 37,372          $ 37,032
Toys' EBITDA (2)

(1) Excludes a $14,900 non-cash charge relating to income tax expense in the purchase accounting basis financial statements for fiscal years 2006 and 2007 identified in July 2008 and included in Vornado's second quarter 2008 results.

(2) EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." Management considers EBITDA a supplemental measure for making decisions and assessing the un-levered performance of its segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, management utilizes this measure to make investment decisions as well as to compare the performance of its assets to that of its peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.

Toys "R" Us, Inc.

Funds From Operations - Unaudited

(Amounts in thousands)                           For the Quarter Ended

                                                 May 2, 2009    May 3, 2008

Reconciliation of Vornado's net income from its
investment in Toys to FFO (1):

Net loss                                         $ (14,273   )  $ (15,811    )

Depreciation and amortization of real property     15,566         16,358

Income tax effect of above adjustment              (5,448    )    (5,948     )

Vornado's share of FFO (1)                       $ (4,155    )  $ (5,401     )

(1) FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net income or loss determined in accordance with Generally Accepted Accounting Principles ("GAAP"), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO is helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company's Consolidated Statements of Cash Flows. FFO should not be considered as an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity.

    Source: Vornado Realty Trust