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News Release

Federal Realty Investment Trust Announces Expansion of the Village at Shirlington

ROCKVILLE, Md.--(BUSINESS WIRE)--Sept. 20, 2004--

The Bozzuto Group, Trammell Crow Company and Arlington County Are
Participants in Expansion That Includes Apartments, Condominiums,
Library, Live Theater and New Retail

Federal Realty Investment Trust (NYSE:FRT) today announced that The Bozzuto Group, Trammell Crow Company, and Arlington County are participating in the expansion of the Village at Shirlington in Arlington, Va. The Bozzuto Group and Trammell Crow Company will create new residential buildings on the property, while Arlington County will add new cultural components. Federal Realty will continue to lease and manage the more than 200,000 square feet of existing retail space, as well as approximately 48,000 square feet of new retail space being added through the expansion.

The Bozzuto Group will build 241 apartment homes lofting above newly created retail space in three buildings along the extension of South 28th Street. In addition, Trammell Crow Company will construct 159 condominiums - which are 100% pre-sold - in a separate building along Arlington Mill Road. As part of the expansion, Arlington County will build a new regional library and a new home for Signature Theater.

Construction of the approximately $100 million expansion has already begun, and a grand opening for the expanded Village at Shirlington is currently scheduled for the third quarter of 2005.

"The Village at Shirlington will be an extremely vibrant community," said Thomas S. Bozzuto, chief executive officer of The Bozzuto Group. "Its close-in location and strong collection of shops and restaurants make it an ideal apartment location. We're delighted to be working with Federal Realty on this project."

"Shirlington has proven itself in the past 10 years, with its vibrant street life and successful retail," said Bob Murphy, senior managing director at Trammell Crow Company. "We're excited about adding a residential component, in the form of upscale condominiums, to the mix. Federal Realty has assembled a terrific team to provide Arlington County residents with new options for housing and cultural growth and we are pleased to be a part of it."

"The Federal Realty development team, along with Arlington County, has created a successful project that is much, much more than the sum of its parts," said Barbara A. Favola, chair of the Arlington County Board. "This development substantially enhances Shirlington and makes this neighborhood a premier destination for the performing arts and delectable dining experiences. We couldn't be happier with this project."

"We are thrilled to have pulled together such a proven team of professionals, each exploiting their own strengths," said Donald Briggs, director of development for Federal Realty Investment Trust. "By pooling our ideas and our financial resources, we will enhance this already dynamic property as an essential urban neighborhood, improving what Federal Realty already owns and creating new retail opportunities for the Trust."

About The Bozzuto Group

Headquartered in Greenbelt, Md., The Bozzuto Group is a full-service real estate company active in development, management, construction, homebuilding, and landscaping. The firm, its principals, and subsidiaries have been recognized with numerous industry honors, including the national Pillars of the Industry Award for Multifamily Development Company of the Year (2003), Property Management Company of the Year (2000), and Multifamily Builder of the Year (1998). Regional honors include Builder of the Year (five times), Environmental Builder of the Year, and Environmental Developer of the Year.

About Trammell Crow Company

Founded in 1948, Trammell Crow Company is one of the largest diversified commercial real estate services companies in the United States. Through its Global Services Group, the company provides building management, brokerage, and project management services to both investors in and users of commercial real estate. Development and investment services are provided through the company's Development and Investment Group. In addition to its full service offices located throughout the United States, the company has offices in Canada, Europe, Asia, and Latin/South America focused on the delivery of real estate services to corporate customers. The company delivers brokerage services outside the United States through strategic alliances with leading providers - in Europe and Asia, through Savills, plc, a leading property services company based in the United Kingdom; and in Canada, through JJ Barnicke, a leading Canadian real estate services provider. Trammell Crow Company is traded on the New York Stock Exchange under the symbol TCC and is located on the Internet at www.trammellcrow.com.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of shopping centers and Street Retail properties. Federal Realty's portfolio contains approximately 16.9 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. The operating portfolio was 94.2% leased to approximately 2,200 national, regional, and local retailers as of June 30, 2004, with no single tenant accounting for more than 2.4 % 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 37 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE 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 federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The factors that may impact these expectations include:

    --  risks that all, or any portion of the planned expansion may
        not be completed on time, or at all;

    --  risks that our tenants will not pay rent or that we may be
        unable to renew leases or relet space at favorable rents as
        leases expire;

    --  risks that any required financing for the expansion will not
        be obtained;

    --  risks normally associated with the real estate industry,
        including risks that the expansion may fail to perform as
        expected, that we may have environmental risks at the
        property, and, because real estate is illiquid, that we may
        not be able to sell the property; and

    --  those risks contained in our annual report on Form 10-K (as
        amended), our quarterly reports on Form 10-Q, and the risks
        contained in our Current Report on Form 8-K filed with the
        Securities and Exchange Commission on March 11, 2004.

Except as required by law, Federal Realty makes no promise to update or supplement any of the forward-looking statements as a result of new information, future events, or otherwise.

CONTACT: Federal Realty Investment Trust
Media Inquiries:
Vikki Quinn, 301-998-8178
Charlie Maier, 301-929-1429

SOURCE: Federal Realty Investment Trust