Archstone-Smith Announces Income Tax
Treatment of 2005 Dividends

DENVER – January 30, 2006 – Archstone-Smith (NYSE:ASN) today announced the income tax allocations of its 2005 dividend distributions on its common stock.

For detailed information on the taxation of dividends, click here.

If you held common shares of Archstone-Smith in your name at any time during 2005, an IRS Form 1099-DIV will be provided to you by Mellon Investor Services, Archstone-Smith's transfer agent, on or about January 31, 2006. If you held any shares in "street name" during 2005, the IRS form provided by your bank, brokerage firm, or nominee will report only the gross dividends paid to you. Therefore, you will need the information set forth above to properly complete your federal tax return. The taxability of distributions has been calculated using the best available information to date. Archstone-Smith's tax return for the year ended December 31, 2005, has not yet been filed. Please note that federal tax laws affect taxpayers differently, and we cannot advise you on how distributions should be reported on your tax return. Please also note that state and local taxation of real estate investment trust (REIT) distributions vary and may not be the same as the federal rules. Archstone-Smith thus urges you to consult with your own tax advisor with respect to the federal, state and local income tax consequences of these dividends.

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 $17.0 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 257 communities, representing 86,930 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.

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.