Reckson flexes its financial muscle.

Reckson Associates Realty Corp. has called for the redemption of the Company's remaining outstanding 7 5/ 8% Series A convertible cumulative preferred stock on October 15, 2004, at a redemption price of $25.7625 per share of Series A preferred stock, plus accumulated and unpaid dividends to the Redemption Date of $0.3918 per share.

The 5,343,900 shares of Series A preferred stock to be redeemed, represent 100% of the total number of outstanding preferred shares subsequent to the company's previous call for the redemption of 2,000,000 shares of its Series A preferred stock which will be effected on September 20, 2004.

Commenting on the redemption, Michael Maturo, Reckson's Chief Financial Officer, stated, "The redemption of our remaining outstanding preferred stock with newly issued common equity, will further strengthen our balance sheet, create additional financial flexibility and improve our dividend payout ratio.

"Excluding an approximate $9.8 million accounting charge in connection with the preferred redemption there is no impact to the company's previously announced funds from operations guidance for 2004."

The redemption price plus accumulated and unpaid dividends will be payable in cash to the Series A preferred holders of record on October 15, 2004, upon and subject to the surrender of the certificates representing the Redemption Shares to American Stock Transfer & Trust Company as redemption agent.