Archstone-Smith Acquires 185-Unit Apartment
Community in the San Francisco Bay Area
Strategic Acquisition Increases Company's Current San Francisco
Bay Area Commitment to $1.2 Billion

DENVER – April 3, 2006 – Archstone-Smith (NYSE: ASN), one of the nation's largest apartment companies, today announced the acquisition of Paragon Apartments, a 185-unit community that is currently under construction in San Bruno, Calif., 10 miles south of downtown San Francisco and 12 miles north of the Silicon Valley. Representing a total expected investment of $72.1 million, the acquisition was funded primarily through tax-deferred exchange proceeds from dispositions of apartment communities that no longer meet the company's long-term investment criteria, and the assumption of $49.6 million of variable rate, tax-exempt bonds with an estimated all-in interest rate of 3.97%. Paragon is the company's second acquisition in The Crossing at San Bruno – a master planned, mixed-use development – and brings the company's total expected investment in the San Francisco Bay Area to $1.2 billion.

"Ideally located in the heart of the San Francisco Bay Area, less than 12 miles from the largest concentration of high-tech firms in the world, Paragon will provide easy access to more than a million jobs in the technology, finance and biotech industries," said R. Scot Sellers, chairman and chief executive officer. "More than half of these jobs are held by people who commute from the surrounding area, and with no other available development opportunities in the San Bruno submarket, Paragon is an ideal addition to our San Francisco Bay Area portfolio."

Archstone-Smith will finish the development of Paragon, which is slated for completion in mid-2007. The community is located in the San Francisco Peninsula, minutes from the San Francisco Airport, Interstate 380, Interstate 280 and Highway 101, and is within walking distance to the San Bruno BART station, providing immediate access to downtown San Francisco and the East Bay. In addition, the community is located across the street from 1.1 million square feet of high-quality retail space in The Shops at Tanforan and just 10 minutes from Union Square, San Francisco's premier retail district with restaurants, art galleries, boutiques and upscale retailers.

All of Paragon's one-, two-, and three-bedroom apartments will include granite countertops, 9-foot ceilings and a private patio/balcony. Residents will also enjoy full access to The Club, a two-story, 8,000 square foot community recreation center that includes two state-of-the-art fitness centers, conference room, business center, theater room, library, lounge, and pool/spa. The community will operate under the company's Archstone brand.

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 $17.5 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 February 28, 2006, Archstone-Smith owned or had an ownership position in 255 communities, representing 86,844 units, including units under construction.

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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 2005 Annual Report on Form 10-K for factors that could affect Archstone-Smith's future financial performance.