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News Release

Federal Realty Announces Fire Damages Portion of Santana Row Development
ROCKVILLE, Md., Aug 20, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) announced today that a fire, which started at about 3:30 pm PST Monday, damaged a significant portion of one building at the company's Santana Row development project.

There are no casualties of the fire as all construction workers and employees of the Trust successfully evacuated the building. At this time, the cause of the fire is unknown.

Phase I of Santana Row is comprised of 9 buildings. The damaged building was the largest building and contained 18% of the retail space, 940 retail parking spaces and nearly 50% of Phase I residential units. All of the residential units in this building, which were under construction and scheduled to be delivered beginning January 2003, were destroyed.

Evaluation of the extent of the damage to the concrete parking structure and the retail spaces is underway.

The Trust carries builder's risk insurance, which it believes will cover the full replacement cost of the damage in addition to general liability and rent loss coverage. The insurance carrier has been notified and additional information will be forthcoming as it becomes available.

"We are grateful that this fire didn't result in any loss of life and that it was contained to one building, said Steve Guttman, chairman and chief executive officer. "At this point, we are evaluating the impact this fire will have on the timing of our opening, but remain committed to the successful completion of Santana Row. We are thankful for the support we have received from Mayor Gonzales and the City of San Jose and the outpouring of encouragement and commitment from our retail tenants."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of shopping centers and street retail properties. Federal Realty's portfolio contains 15 million square feet located in major metropolitan markets across the United States.

The operating portfolio is currently 95.9% leased to over 2,100 national, regional and local retailers with no single tenant accounting for more than 3% of rental revenue.

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 34 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the New York Stock Exchange under the symbol FRT. Additional information about Federal Realty can be found on the Internet at www.federalrealty.com.

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Federal Realty Investment Trust believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Federal's expectations are detailed from time to time in the Company's SEC reports and filings, including its annual report on Form 10-K. Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

CONTACT: Federal Realty Investment Trust, Rockville
Investor Inquiries:
Andrew Blocher, 301/998-8166
ablocher@federalrealty.com
or
Media Inquiries:
Kristine Warner, 301/452-8796
kwarner@federalrealty.com

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