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News Release

Federal Realty Investment Trust Looks for Opportunity in Ames Liquidation
ROCKVILLE, Md., Aug 14, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) announced today that its exposure to Ames Department Stores Inc., was limited to two locations totaling $750,000 of annualized base rent or 0.30% of the Trust's total annualized base rent.

Ames has announced its intention to close all 327 stores after failing to emerge from bankruptcy protection.

Federal Realty's two Ames locations, an 88,602 square foot store in Brunswick, New Jersey and an 80,075 square foot store in Dedham, Massachusetts, pay an average rent of $4.47 per square foot. Federal Realty's Ames in Dedham Plaza is one of the retailer's highest producing stores in the chain.

Historically, Federal Realty has benefited from re-leasing space it has recovered as a result of retailer bankruptcies. Since 1995, the Trust has recovered 1.6 million square feet of retail space as a direct result of tenant bankruptcies, re-leasing 95% of such space at an average cash-basis rent increase of 19% with an average downtime of only five months.

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
Media Inquiries:
Kristine Warner, 301/998-8212
Investor Inquiries:
Andrew Blocher, 301/998-8166

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