Equity Residential Announces Pricing of $600 Million of Exchangeable Senior Notes.

CHICAGO -- Equity Residential (NYSE:EQR) announced today that it has priced its offering of $600 million of aggregate principal amount exchangeable senior notes due 2026 with a coupon of 3.85 percent. An additional $50 million aggregate principal amount of notes may be issued, at the option of the underwriters, to cover over-allotments, within 30 days. The notes were offered through the company's subsidiary, ERP Operating Limited Partnership (ERP OP) and are registered under ERP OP's existing shelf registration statement. The offering is expected to close on August 23, 2006.

The notes will be senior unsecured obligations of ERP OP and will be exchangeable, under specified circumstances into cash and/or Equity Residential common shares at an initial exchange rate of 16.3934 shares per $1,000 principal amount of notes. The initial exchange price of $61.00 represents a 28.04 percent premium to yesterday's closing EQR common share price of $47.64 per share. On and after August 18, 2011, ERP OP may redeem all or a portion of the notes at a redemption price equal to the principal amount plus accrued and unpaid interest, if any, subject to the noteholders' exchange rights.

ERP OP expects to use the net proceeds from the sale of the notes to reduce the outstanding balances under its revolving credit facilities.

Merrill Lynch & Co. is acting as the book-running manager for the offering with Banc of America Securities, LLC, Citigroup Global Markets Inc., and Morgan Stanley acting as co-managers.

The offering is being made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained by contacting Merrill Lynch & Co. via telephone at [phone]. Alternatively, the prospectus and prospectus supplement may be obtained by visiting EDGAR on the SEC website at http://www.sec.gov.

Forward-Looking Statements

This release may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating this release and the outlook of Equity Residential and ERP OP, but are not limited to, changes in economic, business and competitive conditions, and other factors affecting the operation of the business of Equity Residential and ERP OP. These and other risks and uncertainties are detailed in the prospectus supplement and prospectus to this offering as well as in their respective filings with the SEC, including their most recent Quarterly Reports on Form 10-Q for the period ended June 30, 2006 and their Annual Reports on Form 10-K for the year ended December 31, 2005 which are incorporated by reference into the prospectus supplement and prospectus. Equity Residential and ERP OP are under no obligation, and expressly disclaim any obligation, to update or alter their forward-looking statements, whether as a result of changes, new information, subsequent events or otherwise.

Equity Residential, an S&P 500 company, is the largest publicly traded apartment company in America. Nationwide, Equity Residential owns or has investments in 901 properties in 31 states and the District of Columbia consisting of 192,116 units. For more information on Equity Residential, please visit our website at www.equityresidential.com.