Alexander's, Inc. Reports Results.

PARAMUS, N.J. -- ALEXANDER'S, INC. (NYSE: ALX) today reported:

Quarter Ended June 30, 2006 Results

Net income for the quarter ended June 30, 2006 was $36.9 million, or $7.25 per diluted share, compared to $17.5 million, or $3.44 per diluted share, for the quarter ended June 30, 2005. Funds from operations ("FFO") for the quarter ended June 30, 2006 was $42.3 million, or $8.31 per diluted share, compared to $22.4 million, or $4.41 per diluted share, for the quarter ended June 30, 2005.

Net income and FFO for the quarter ended June 30, 2006 include, $14.7 million for the reversal of a portion of the accrual of stock appreciation rights ("SARs") compensation expense and $8.2 million for an after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue. These items, in the aggregate, increased net income and FFO by $22.9 million, or $4.50 per diluted share. Net income and FFO for the quarter ended June 30, 2005 include, $13.2 million for an after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue, partially offset by, $6.2 million for an accrual of SARs compensation expense. These items, in the aggregate, increased net income and FFO by $7.0 million, or $1.38 per diluted share.

Six Months Ended June 30, 2006 Results

Net income for the six months ended June 30, 2006 was $18.0 million, or $3.54 per diluted share, compared to $48.7 million, or $9.59 per diluted share, for the six months ended June 30, 2005. FFO for the six months ended June 30, 2006 was $28.7 million, or $5.64 per diluted share, compared to $58.3 million, or $11.48 per diluted share, for the six months ended June 30, 2005.

Net income and FFO for the six months ended June 30, 2006 include, $22.9 million for an accrual of SARs compensation expense, partially offset by, $13.3 million for an after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue. These items, in the aggregate, decreased net income and FFO by $9.6 million, or $1.90 per diluted share. Net income and FFO for the six months ended June 30, 2005 include, $53.1 million for an after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue, partially offset by, $28.7 million for an accrual of SARs compensation expense. These items, in the aggregate, increased net income and FFO by $24.4 million, or $4.82 per diluted share.

Alexander's, Inc. is a real estate investment trust which has six properties in the greater New York City metropolitan area.

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.

ALEXANDER'S, INC.

        OPERATING RESULTS FOR THE QUARTER AND SIX MONTHS ENDED
                        JUNE 30, 2006 AND 2005

Below is a table of selected operating results.


                                           For the Quarter Ended
                                      --------------------------------
(Amounts in thousands, except share          June 30,        June 30,
 and per share amounts)                        2006            2005
                                      --------------------------------

Revenues                                    $   49,371     $   45,735
                                             ==========     ==========

Income from continuing operations           $   28,603     $    4,294
Net gain on sale of condominiums, net
 of income taxes                                 8,248         13,170
                                             ----------     ----------
Net income                                  $   36,851     $   17,464
                                             ==========     ==========

FFO                                         $   42,265     $   22,416
                                             ==========     ==========

Net income per common share - basic:
   Income from continuing operations        $     5.69     $     0.86
   Net gain on sale of condominiums,
    net of income taxes                           1.64           2.62
                                             ----------     ----------
   Net income per common share - basic      $     7.33     $     3.48
                                             ==========     ==========

Net income per common share - diluted:
   Income from continuing operations        $     5.63     $     0.85
   Net gain on sale of condominiums,
    net of income taxes                           1.62           2.59
                                             ----------     ----------
   Net income per common share -
    diluted                                 $     7.25     $     3.44
                                             ==========     ==========

FFO per common share - diluted              $     8.31     $     4.41
                                             ==========     ==========

Weighted average share and share
 equivalents outstanding:
   Basic                                     5,025,000      5,021,899
                                             ==========     ==========
   Diluted                                   5,084,541      5,081,113
                                             ==========     ==========


                                           For the Six Months Ended
                                         -----------------------------
(Amounts in thousands, except share and      June 30,        June 30,
 per share amounts)                            2006            2005
                                         -----------------------------

Revenues                                    $   97,747     $   89,411
                                             ==========     ==========

Income (loss) from continuing operations    $    4,738     $   (4,463)
Net gain on sale of condominiums, net of
 income taxes                                   13,256         53,145
                                             ----------     ----------
Net income                                  $   17,994     $   48,682
                                             ==========     ==========

FFO                                         $   28,683     $   58,265
                                             ==========     ==========

Net income per common share - basic:
   Income (loss) from continuing
    operations                              $     0.94     $    (0.89)
   Net gain on sale of condominiums, net
    of income taxes                               2.64          10.59
                                             ----------     ----------
   Net income per common share - basic      $     3.58     $     9.70
                                             ==========     ==========

Net income per common share - diluted:
   Income (loss) from continuing
    operations                              $     0.93     $    (0.88)
   Net gain on sale of condominiums, net
    of income taxes                               2.61          10.47
                                             ----------     ----------
   Net income per common share - diluted    $     3.54     $     9.59
                                             ==========     ==========

FFO per common share - diluted              $     5.64     $    11.48
                                             ==========     ==========

Weighted average share and share
 equivalents outstanding:
   Basic                                     5,024,983      5,018,880
                                             ==========     ==========
   Diluted                                   5,083,836      5,077,344
                                             ==========     ==========


The following table reconciles net income to FFO:


(Amounts in thousands)                         For the Quarter Ended
                                              ------------------------
                                                 June 30,     June 30,
                                                   2006         2005
                                              ------------------------
Net income                                        $36,851     $17,464
Depreciation and amortization of real property      5,414       4,952
                                              ------------------------
FFO                                               $42,265     $22,416
                                              ========================


(Amounts in thousands)                        For the Six Months Ended
                                              ------------------------
                                                 June 30,     June 30,
                                                   2006         2005
                                              ------------------------
Net income                                        $17,994     $48,682
Depreciation and amortization of real property     10,689       9,583
                                              ------------------------
FFO                                               $28,683     $58,265
                                              ========================

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net earnings determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO and FFO per diluted share are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO and FFO per diluted share should be evaluated along with GAAP net earnings and earnings per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO and FFO per diluted share are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of depreciable real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company's consolidated statements of cash flows. FFO should not be considered as an alternative to net earnings as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity.