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' fourth quarter financial results in its first quarter ending March 31, 2009. Vornado's results will include net income of $97,147,000 or $.53 per diluted share compared to a net income of $80,362,000 or $.44 per diluted share recorded in the quarter ended March 31, 2008.

Vornado's share of Funds From Operations ("FFO") before income taxes for the quarter ended March 31, 2009 is $166,818,000 or $.92 per share as compared to FFO before income taxes of $190,933,000 or $1.04 per share in the prior year's quarter. In the quarter ended March 31, 2009, Vornado's results will include FFO after income taxes of $107,924,000, or $.59 per share as compared to FFO after income taxes of $91,186,000, or $.50 per share in the quarter ended March 31, 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

                          January 31, 2009                    February 2, 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                 $ 5,461,000      $ 5,461,000        $ 5,827,000

Cost of sales               3,664,000        3,664,000          3,843,000

Gross margin                1,797,000        1,797,000          1,984,000

Selling, general and        1,146,000        1,132,200          1,214,000
administrative expenses

Depreciation and            101,000          109,600            108,300
amortization

Other income - net          (44,000    )     (35,400      )     (2,000         )

Total operating expenses    1,203,000        1,206,400          1,320,300

Operating earnings          594,000          590,600            663,700

Interest expense            (104,000   )     (107,900     )     (127,200       )

Interest income             3,000            3,000              12,000

Earnings before income
taxes and minority          493,000          485,700            548,500
interest

Income tax expense          (138,000   )     (174,700     )     (296,400       )

Minority interest, net      (10,000    )     (19,600      )     (12,600        )
of tax

Net earnings              $ 345,000        $ 291,400          $ 239,500

Vornado's 32.7% equity                     $ 95,294           $ 78,355
in Toys' net earnings

Management fee from Toys                     1,447              1,378

Interest income on                           406                629
credit facility

Total Vornado net income
from its investment in                     $ 97,147           $ 80,362
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                                 $ 97,147           $ 80,362

Interest and debt                            35,183             41,495
expense

Depreciation and                             35,257             34,102
amortization

Income tax expense                           53,091             93,919

Vornado's 32.7% share of                   $ 220,678          $ 249,878
Toys' EBITDA (1)

(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 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 31, 2009    February 2, 2008

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

Net income                               $ 97,147            $ 80,362

Depreciation and amortization of real      16,580              16,652
property

Income tax effect of above adjustments     (5,803         )    (5,828         )

Vornado's share of FFO (1)               $ 107,924           $ 91,186

(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