PRESS RELEASE

PARAMUS, N.J.--(BUSINESS WIRE)-- Vornado Realty Trust (NYSE:VNO) announced today that it has recorded its 32.7% share of Toys "R" Us' fourth quarter financial results in its first quarter ended March 31, 2010. Vornado's results include net income of $125,870,000, or $0.62 per diluted share, compared to net income of $97,147,000, or $0.54 per diluted share recorded in the quarter ended March 31, 2009.

Vornado's share of Funds From Operations ("FFO") before income taxes for the quarter ended March 31, 2010 is $193,081,000 or $0.95 per diluted share, compared to FFO before income taxes of $166,818,000, or $0.92 per diluted share in the prior year's quarter. Vornado's share of FFO after income taxes for the quarter ended March 31, 2010 is $137,246,000, or $0.67 per diluted share, compared to FFO after income taxes of $107,924,000, or $0.60 per diluted share in the quarter ended March 31, 2009.

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

                               January 30, 2010                 January 31, 2009

                                               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                      $ 5,857,000     $ 5,857,000      $ 5,461,000

Cost of sales                    3,870,000       3,870,000        3,664,000

Gross margin                     1,987,000       1,987,000        1,797,000

Selling, general and             1,222,000       1,231,900        1,132,200
administrative expenses

Depreciation and amortization    97,000          109,300          109,600

Other income, net                (18,000   )     (13,100   )      (35,400   )

Total operating expenses         1,301,000       1,328,100        1,206,400

Operating income                 686,000         658,900          590,600

Interest expense                 (123,000  )     (127,600  )      (107,900  )

Interest income                  2,000           2,000            3,000

Earnings before income taxes     565,000         533,300          485,700

Income tax expense               (177,000  )     (153,700  )      (174,700  )

Net earnings                     388,000         379,600          311,000

Less: Net earnings
attributable to                  1,000           1,000            19,600
noncontrolling interest

Net earnings attributable to   $ 387,000       $ 378,600        $ 291,400
Toys "R" Us, Inc.

Vornado's 32.7% equity in                      $ 123,840        $ 95,294
Toys' net earnings

Management fee from Toys, net                    1,670            1,447

Interest income on credit                        360              406
facility

Total Vornado net income from                  $ 125,870        $ 97,147
its investment in 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
(1):

Net income                                     $ 125,870        $ 97,147

Interest expense                                 41,140           35,183

Depreciation and amortization                    35,327           35,257

Income tax expense                               49,710           53,091

Vornado's share of Toys'                       $ 252,047        $ 220,678
EBITDA (1)

     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
(1)  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

                                             January 30, 2010  January 31, 2009

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

Net income                                   $ 125,870         $ 97,147

Depreciation and amortization of real          17,501            16,580
property

Income tax effect of above adjustment          (6,125  )         (5,803  )

Vornado's share of Toys' FFO (1)             $ 137,246         $ 107,924

     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 GAAP net income or loss adjusted to
     exclude net gains from sales of depreciated real estate assets and GAAP
     extraordinary items, and to include depreciation and amortization expense
     from real estate assets and other specified non-cash items, including the
     pro rata share of such adjustments of unconsolidated subsidiaries. FFO and
     FFO per diluted share are used by management, investors and analysts to
(1)  facilitate meaningful comparisons of operating performance between periods
     and among our peers because it excludes the effect of real estate
     depreciation and amortization and net gains on sales, which are based on
     historical costs and implicitly assume that the value of real estate
     diminishes predictably over time, rather than fluctuating based on existing
     market conditions. FFO does not represent cash generated from operating
     activities and is not necessarily indicative of cash available to fund cash
     requirements and should not be considered as an alternative to net income
     as a performance measure or cash flows as a liquidity measure. FFO may not
     be comparable to similarly titled measures employed by other companies.

    Source: Vornado Realty Trust