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' third quarter financial results in its fourth quarter ending December 31, 2008. Vornado's results will include a net loss of $39,130,000 or $.22 per diluted share compared to a net loss of $32,680,000 or $.18 per diluted share recorded in the quarter ended December 31, 2007.

Vornado's share of negative Funds From Operations ("FFO") before income taxes for the quarter ended December 31, 2008 is $47,279,000 or $.26 per share as compared to negative FFO before income taxes of $50,087,000 or $.28 per share in the prior year's quarter. In the quarter ended December 31, 2008, Vornado's results will include negative FFO after income taxes of $29,395,000 or $.16 per share as compared to negative FFO after income taxes of $23,748,000 or $.13 per share in the quarter ended December 31, 2007.

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 loss, as well as reconciliations of net loss 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

                          November 1, 2008                    November 3, 2007

                                           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                 $ 2,773,000      $ 2,773,000        $ 2,781,000

Cost of sales               1,813,000        1,813,000          1,804,000

Gross margin                960,000          960,000            977,000

Selling, general and        920,000          941,000            942,900
administrative expenses

Depreciation and            95,000           103,400            104,300
amortization

Net gains on sales of       (1,000     )     (1,700       )     (4,800         )
properties

Total operating expenses    1,014,000        1,042,700          1,042,400

Operating loss              (54,000    )     (82,700      )     (65,400        )

Interest expense            (115,000   )     (119,000     )     (141,000       )

Interest income             2,000            2,000              3,000

Loss before income taxes    (167,000   )     (199,700     )     (203,400       )
and minority interest

Income tax benefit          61,000           71,400             96,100

Minority interest           2,000            1,900              2,000

Net loss                  $ (104,000   )   $ (126,400     )   $ (105,300       )

Vornado's 32.7% equity                     $ (41,335      )   $ (34,450        )
in Toys' net loss

Management fee from                          1,668              1,062
Toys, net

Interest income on                           537                708
credit facility

Total Vornado net loss
from its investment in                     $ (39,130      )   $ (32,680        )
Toys

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

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

Net loss                                   $ (39,130      )   $ (32,680        )

Interest and debt                            38,841             45,908
expense

Depreciation and                             33,343             32,606
amortization

Income tax benefit                           (23,126      )     (31,148        )

Vornado's 32.7% share of                   $ 9,928            $ 14,686
Toys' 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

                                        November 1, 2008     November 3, 2007

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

Net loss                                $ (39,130        )   $ (32,680        )

Depreciation and amortization of real     15,533               16,260
property

Net gains on sale of real estate          (556           )     (2,519         )

Income tax effect of above adjustments    (5,242         )     (4,809         )

Vornado's share of FFO (1)              $ (29,395        )   $ (23,748        )

     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
(1)  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