Colonial Properties Trust Announces Sale of Three Multifamily Properties.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a real estate investment trust that owns a portfolio of multifamily, office and retail properties, announced today the sale of three multifamily properties for a sales price of $151.7 million. The proceeds from the sale were used to pay off existing mortgage debt of $63.4 million, and the remaining proceeds are anticipated to be reinvested into newer multifamily properties located in top quartile cities in the Sunbelt.

The three properties, representing 2,284 units, are located in Alabama; Colonial Grand at Galleria, 1,080 units and Colonial Grand at Riverchase, 468 units are located in Birmingham. Colonial Village at Research Park, 736 units, is located in Huntsville. The average age of the three properties is eighteen years.

"The sale of these assets allows us to reinvest the proceeds into newer multifamily properties in our strategic markets," said Paul Earle, executive vice president of the company's multifamily division. "The redeployment of capital into newer assets with higher growth potential is consistent with our strategy to move towards a stronger multifamily focus."

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties throughout the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.6 billion. As of September 30, the company owns or manages 46,125 apartment units, 17.7 million square feet of office space and 12.1 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the cost and availability of new debt financings; volatility of interest rates or capital market conditions; effect of any terrorist activity; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the Company assumes no liability to update the information in this press release.

The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Business-Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, which discuss these and other factors that could adversely affect the Company's results.