Colonial Properties Trust Introduces a New Direct Investment Plan.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust, today unveiled its new Direct Investment Program. The enhanced program contains several attractive features, including a provision that allows new investors to enroll in the program with an initial investment.

"The program provides shareholders and prospective investors with a simple and economical way to reinvest cash dividends paid on common shares toward the purchase of additional common shares, as well as to purchase and sell common shares directly from the company," said Barbara Pooley, senior vice president of investor relations. "Currently, the program also features a discount on both dividend reinvestments and optional cash investments, making it one of the most attractive programs in the industry."

The company also increased its limitation on optional cash investments from $25,000 annually to $7,500 per month. Both dividend reinvestments and optional cash investments may be eligible for a discount between zero and 3 percent. Currently, the company offers a 3 percent discount on common shares purchased from the company. Initial purchases are not eligible for this discount.

All interested investors are encouraged to review the details of the plan, which are included in a prospectus filed with the U.S. Securities and Exchange Commission. A copy of the prospectus is available at www.colonialprop.com, under the Investor Information tab, or by calling the company's transfer agent, Equiserve, N.A., at [phone].

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in 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 $5.5 billion. The company owns or manages 47,700 apartment units, 7.9 million square feet of office space and 13.5 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.