Corporate Office Properties Trust Repurchases 1 Million Convertible Preferred Units.

Business Editors

COLUMBIA, Md.--(BUSINESS WIRE)--June 16, 2003

Corporate Office Properties Trust (NYSE:OFC), the largest owner of commercial office properties in the Baltimore/Washington Corridor, announced today the repurchase of all 1,016,662 Series C convertible preferred units in the operating partnership, for $36,068,016. The preferred units were issued between December 1999 and July 2000, at a liquidation value of $25.00 per unit, paying a preferred return of 9% annually. The Company had issued the Series C units and assumed existing debt in exchange for the contribution of three properties to the operating partnership.

Each preferred unit was convertible into 2.381 common units or 2,420,672 in total common units of the operating partnership, and ultimately into common shares of Corporate Office Properties Trust. The $36,068,016 purchase price equates to $14.90 per common share. As a result of the repurchase, there is no second quarter 2003 dividend payable on these units.

"The repurchase of the preferred units improves our fixed charge coverage and provides the Company financial flexibility to achieve its growth target," stated Randall M. Griffin, President and Chief Operating Officer.

Company Information

Corporate Office Properties Trust is a fully integrated, self-managed, real estate investment trust which focuses on the ownership, management, leasing, acquisition and development of suburban office properties located in select Mid-Atlantic submarkets. The Company currently owns 113 office properties totaling 9.5 million rentable square feet, including three properties held through joint ventures. Corporate Development Services, the Company's development company, provides a wide range of development and construction management services. In addition, Corporate Office Services provides land planning, design/build services, consulting and merchant development to third party entities. The Company's shares are traded on the New York Stock Exchange under the symbol OFC. More information on Corporate Office Properties Trust can be found on the Internet at www.copt.com.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of the Private Litigation Reform Act of 1995. We are making these statements based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with the forward-looking information include the strength of the commercial office real estate market in which the Company operates, competitive market conditions, general economic growth, interest rates and capital market conditions. The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the Securities and Exchange Commission.