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News Release

Federal Realty Postpones Previously Announced Debt Offering

ROCKVILLE, Md.--(BUSINESS WIRE)--Aug. 20, 2002--Federal Realty Investment Trust (NYSE:FRT) announced today that as a result of yesterday's fire at its Santana Row development in San Jose, California, it has decided to postpone the previously announced $150 million 5.875% senior notes offering, originally scheduled to close on August 21, 2002, until greater definition of the impact to Santana Row has been ascertained.

Accordingly, no notes will be delivered to the underwriters or investors on August 21, 2002.

By issuing the senior unsecured notes, the Trust intended to take advantage of favorable conditions in the debt markets. The Trust's current capital structure provides the flexibility to carry out its business plan, which includes the operation of the core portfolio, execution of the redevelopment pipeline and the completion of Santana Row. Therefore, considering recent events at Santana Row, the Trust no longer believes it to be in its best interest to access the debt markets at this time.

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.

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CONTACT: Federal Realty Investment Trust, Rockville
Investor Inquiries
Andrew Blocher, 301/998-8166
ablocher@federalrealty.com
or
Federal Realty Investment Trust, Rockville
Media Inquiries
Kristine Warner, 301/998-8212
kwarner@federalrealty.com