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News Release

Federal Realty Prices $150 Million of Senior Unsecured Notes
ROCKVILLE, Md., Aug 16, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) announced today that it has priced a $150 million offering of senior unsecured notes due August 15, 2007. Merrill Lynch & Co., Salomon Smith Barney Inc. and Wachovia Securities served as lead managers, with Commerzbank Securities, Banc of America Securities LLC, BMO Nesbitt Burns, HVB Capital Markets, Inc., Fleet Securities, Inc., Wells Fargo Brokerage Services, LLC and PNC Capital Markets, Inc. serving as co-managers. These five-year notes, rated Baa2 by Moody's Investors Service and BBB by Standard & Poor's, were issued at 99.25% of par value with a coupon of 5.875% to yield 6.052% to investors. Interest on the notes is payable semi-annually on February 15 and August 15 of each year.

The Company intends to use the net proceeds of the offering for the repayment of outstanding indebtedness, including amounts outstanding under the construction loan for the Santana Row development in San Jose, California, and for other general corporate purposes. Settlement is scheduled for August 21, 2002.

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

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