Archstone-Smith Operating Trust Closes Funding of
Exchangeable Senior Notes
Company Receives $563 million of Net Proceeds

DENVER – July 14, 2006 – Archstone-Smith (NYSE:ASN), a real estate investment trust and one of the nation's largest apartment companies, today announced that its subsidiary, Archstone-Smith Operating Trust (ASOT) closed on the funding of $575 million aggregate principal amount of exchangeable senior unsecured notes – including a 15% underwriters overallotment option – due 2036, with a coupon of 4.0%. The notes will be exchangeable into Archstone-Smith common shares at an initial exchange ratio, subject to adjustment, of 15.7206 shares per $1,000 principal amount of notes (or an initial exchange price of $63.6108 per common share). The company will receive approximately $563 million net proceeds from this offering.

The notes are senior unsecured obligations of ASOT. The company intends to use the net proceeds from the offering to repay outstanding balances under its revolving credit facility and certain other indebtedness, to make additional investments and for general corporate purposes. The notes may be exchanged at the option of the holder at any time on or after July 18, 2011, and prior thereto only upon the occurrence of specified events. Upon exchange, the company may pay cash, common shares of Archstone-Smith Trust or a combination thereof based on the exchange value of the notes. The notes will be redeemable at par at the option of the company on or after July 18, 2011, and noteholders may require the company to repurchase the notes for cash at par initially on July 18, 2011.

Citigroup Corporate and Investment Banking and Morgan Stanley were the joint bookrunning managers, and JP Morgan Securities Inc. was co-manager for the offering.

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 $18.6 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 June 30, 2006, Archstone-Smith owned or had an ownership position in 267 communities, representing 82,491 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.