PRESS RELEASE

PARAMUS, N.J.--(BUSINESS WIRE)--Dec. 30, 2004--Vornado Realty Trust (NYSE:VNO) announced today that Vornado Realty L.P., the operating partnership through which Vornado Realty Trust conducts its business, sold $20 million of 6.55% Series D-12 Cumulative Redeemable Preferred Units and $46.7 million of 3.0% Series D-13 Cumulative Redeemable Preferred Units in two separate transactions. The Series D-12 units may be called without penalty at the option of the issuer commencing in December 2009. The Series D-13 units may be called without penalty at the option of the issuer commencing in December 2011. The Series D-13 units may be redeemed at the option of the holder commencing in December 2006.

These securities have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

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