[LETTERHEAD OF VORNADO REALTY TRUST]


CONTACT:  JOSEPH MACNOW
          (201) 587-1000

FOR IMMEDIATE RELEASE - August 18, 2004

              VORNADO ANNOUNCES PUBLIC OFFERING OF $75 MILLION 7.0%
                 SERIES E CUMULATIVE REDEEMABLE PREFERRED SHARES

         PARAMUS, NEW JERSEY,......Vornado Realty Trust (NYSE:VNO) today
announced the pricing of a public offering of three million perpetual 7.0%
Series E Cumulative Redeemable Preferred Shares, at a price of $25.00 per share,
pursuant to an effective registration statement. The Company may redeem the
Series E Preferred Shares at a redemption price of $25.00 per share after August
20, 2009. Bear, Stearns & Co. Inc. acted as the sole book-running manager. In
addition, the Company has granted the underwriters an option for 30 days to
purchase up to an additional 450,000 Preferred Shares to cover over-allotments.

         This communication shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification.

         Vornado Realty Trust is a fully-integrated equity real estate
investment trust.

         Certain statements contained herein may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, risks associated
with the timing of and costs associated with property improvements, financing
commitments and general competitive factors.