Archstone-Smith Increases Its Common Share Dividend for
2007 to $1.81 per Share
2007 Common Share Dividend Level Represents 16th Consecutive Annual Increase

DENVER – December 7, 2006 — Archstone-Smith (NYSE:ASN) announced today its Board has approved an increase in its annualized common share dividend for 2007, increasing it to $1.81 per share compared to the 2006 dividend of $1.74. This marks the company's 16th year of consecutive dividend increases – and its largest increase since 2001.

"Our dividend represents an important part of our shareholders' total return on their investment in Archstone-Smith, and this substantial increase reflects the continued strength of our operating performance and our positive outlook for strong apartment fundamentals in the fourth quarter of 2006 and into 2007," said R. Scot Sellers, chairman and chief executive officer. "We are proud to have been able to increase our dividend by more than 183% since 1991."

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 more than $21 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California,  the New York City metropolitan area, the San Francisco Bay Area, Boston, Seattle, Southeast Florida and Chicago. 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 October 31, 2006, the company owned or had an ownership position in 353 communities, representing 89,699 units, including units under construction.

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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, and 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. See "Risk Factors" in Archstone-Smith's 2005 Annual Report on Form 10-K for factors which could affect Archstone-Smith's future financial performance.