Archstone-Smith Increases Its Common
Share Dividend for 2006
2006 Common Share Dividend Level Represents
Fifteenth Consecutive Annual Increase

DENVER — January 4, 2006 — Archstone-Smith (NYSE:ASN) announced today its Board increased its annualized common share dividend for 2006 to $1.74 per share. This marks the company's 15th consecutive dividend increase – and a total increase of 172% since 1991. The Board also declared Archstone-Smith's first quarter 2006 dividend of $0.435 per common share, payable on February 28, 2006, to common shareholders of record on February 15, 2006. This represents the company's 122nd consecutive common share dividend.

"We are pleased with the continued strength of our operating performance, which enables us to increase our annual common dividend for the 15th consecutive year." said R. Scot Sellers, chairman and chief executive officer. The $1.74 per common share represents a current yield of 4.2% based on Archstone-Smith's closing share price on December 30, 2005, which compares favorably with the current dividend yield of 1.8% for the S&P 500 Index.

Archstone-Smith (NYSE: ASN), an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of $16.1 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Southeast Florida, Chicago, and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers – backed by unconditional service guarantees. As of December 31, 2005, Archstone-Smith owned or had an ownership position in 246 communities, representing 86,108 units, including units under construction.

Archstone-Smith's archived press releases are available on its web site at www.ArchstoneSmith.com or may be obtained by calling (800) 982-9293.

Archstone-Smith's press releases are available on the company's web site at ArchstoneSmith.com or by calling (800) 982-9293. In addition to historical information, this press release contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith operates, management's beliefs and assumptions made by management. While Archstone-Smith management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information. See "Risk Factors" in Archstone-Smith's 2004 Annual Report on Form 10-K for factors which could affect Archstone-Smith's future financial performance.