Gordon Biersch, One of Eleven New Restaurants and Retailers to Join Rockville Town Square

ROCKVILLE, Md. (September 20, 2006) – Gordon Biersch Brewery Restaurant, known for its superior beer and fresh food, leads the latest list of merchants coming to Rockville Town Square in downtown Rockville, Maryland.

Federal Realty Investment Trust (NYSE:FRT) announced that it has signed Gordon Biersch to open its third Washington-area restaurant location at the prominent corner of Maryland Avenue and Middle Lane in the Rockville Town Square project. Gordon Biersch offers hand-crafted beer and premium, made-from-scratch food. The company, which has restaurants in McLean, Virginia and Washington, D.C., showcases a passion for food with seasonal menus, daily specials and frequent changes to the regular menu. The first Gordon Biersch opening in 1988 in Palo Alto, California, as the creation of Dan Gordon and Dean Biersch. They now have 17 locations across the United States, including Hawaii.

Joining Gordon Biersch to offer more dining choices at Rockville Town Square is Stonefish Grill, Red Parrot, Austin Grill, First Watch, Robeks, and Jerry's Subs and Pizza. New retailers include Toy Kingdom, Wireless Outlet, Acquanails, and Rockville Town Square Cleaners.

• Stonefish Grill features fresh seafood in a casual gulf coast-style fish house and bar. The menu features a wide assortment of fresh fish, shellfish and non-seafood selections with a hot 'n spicy southern flair.



• Red Parrot is a first-class Chinese restaurant offering traditional favorites and exciting new twists on Chinese cuisine.



• Austin Grill combines “Mexican tradition with a little Texas cowboy” to produce fresh, homemade food. The Rockville Town Square location will be the eighth Austin Grill location in the Washington area.



• First Watch is a top-quality breakfast and brunch concept from Florida that serves omelets, French toast and other favorites. This is the first location in the market.



• Robeks makes eating a healthy meal quick and easy. A retail juice company from California, Robeks offers made-to-order fruit smoothies and freshly squeezed vegetable juices, as well as wholesome sandwiches, health snacks and premium nutritional supplements. Robeks has 10 locations in the Washington, D.C. area including Federal Realty's Congressional Plaza in Rockville, Maryland.



• Jerry's Subs and Pizza, with stores in nine countries, is known as the premier franchise for world-famous cheese steaks and authentic New York-style pizza.

To accompany the restaurants and boutiques announced earlier this year, Federal Realty also leased retail space to Toy Kingdom, Wireless Outlet, Acqua Nails, and Rockville Town Square Cleaners.

• Toy Kingdom will sell specialty toys including puzzles, games and other high quality items for kids of all ages. This will be the first location in the market.



• Wireless Outlet is the Washington area's top authorized dealer for Cingular Wireless, with 11 locations in the region.



• Acquanails is a nail salon offering such services as manicures, pedicures, acrylic sets, and waxing. Aquanails has two current locations in Bethesda, Maryland.



• Rockville Town Square Cleaners is a family-owned dry cleaner with a location in Wildwood Shopping Center in Bethesda, Maryland.

“We are focusing on bringing the right balance of dining, shopping and service retail to Rockville Town Square,” said Wendy Seher, VP of leasing for Federal Realty Investment Trust. “These new restaurants and retailers are excited to be part of Rockville Town Square, and will be a perfect complement to the surrounding communities.”

Federal Realty is continuing its success in creating active, urban environments through the development of Rockville Town Square. Tree-lined streets, sidewalk cafes, community gathering areas and entertainment will create a new destination experience in Rockville. A public library – the largest in the Montgomery County system – and a cultural arts center complete the experience of a true town center.

Federal Realty is teaming with the City of Rockville and its private partner RD Rockville LLC – Ross Development and DANAC Development – to complete the eagerly awaited community of shops, restaurants, condominiums and additional parking that will round out the 12.5-acre complex. The $352 million complex includes $88 million in public funds from local, state and federal governments.

The City of Rockville and its private partners broke ground in June 2004, and expect to open the first segments of Rockville Town Square, including the new public library and more parking later this fall.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 18.3 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 0.7 million square feet of retail space through its joint venture with Clarion Lion Properties Fund in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 96.7% leased to national, regional, and local retailers as of June 30, 2006, with no single tenant accounting for more than approximately 2.6% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 39 consecutive years, the longest record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.