Colonial Properties Trust Reports Only Minor Damages From Hurricane Katrina.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust, announced today that its properties weathered the storm with only minor damages at its properties in Alabama and Mississippi after Hurricane Katrina hit the Gulf Coast on Monday. Damages are not expected to have a significant financial impact.

"We are fortunate that all of our employees are safe and that our properties withstood the hurricane's force with structural integrity," said Thomas H. Lowder, chairman and chief executive officer of Colonial Properties. "This was a devastating storm and our thoughts are with all who experienced loss."

Repairs and clean-up began Tuesday with an emphasis on roof and window repairs to secure the properties. In Mobile, Colonial Mall Bel Air re-opened for business today.

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. As of July 28, the company owned or managed 47,700 apartment units, 8.3 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.