MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 7, 2003--Reckson Associates Realty Corp. (NYSE: RA, RA.B) announced today that the Company is electing to exercise its right to exchange all of the outstanding shares of Class B Common Stock on November 25, 2003 ("the Exchange Date") for shares of its Class A Common Stock, par value $.01 per share, at an exchange rate equal to one share of Class A Common Stock for each share of Class B Common Stock outstanding ("the Exchange Transaction").

The shares of the Class B Common Stock will cease trading on the New York Stock Exchange at the close of business on November 25, 2003. Shares of Class A Common Stock issuable upon exchange of the Class B Common Stock will trade on the New York Stock Exchange under the existing Class A Common Stock symbol RA.

The Board of Directors has declared a final cash dividend on the Company's Class B Common Stock to holders of record on November 25, 2003 in the amount of $.1758 per share, payable on January 12, 2004. This payment will cover the period from November 1, 2003 through November 25, 2003 and is based on the current quarterly Class B Common Stock dividend rate of $.6471 per share.

In order to align the regular quarterly dividend payment schedule of the former holders of Class B Common Stock with the schedule of the holders of Class A Common Stock for periods subsequent to the Exchange Date, the Board of Directors has also declared a cash dividend with regard to the Class A Common Stock to holders of record on October 14, 2003 in the amount of $.2585 per share, payable on January 12, 2004. This payment will cover the period from October 1, 2003 through November 25, 2003 and is based on the current quarterly Class A Common Stock dividend rate of $.4246 per share. As a result, the Company will have declared dividends through November 25, 2003 to all holders of Class A Common Stock and Class B Common Stock.

The Board of Directors has also declared the Class A Common Stock cash dividend for the portion of the fourth quarter subsequent to November 25, 2003. The holders of record of Class A Common Stock on January 2, 2004, giving effect to the Exchange Transaction, will receive a Class A Common Stock dividend in the amount of $.1661 per share, payable on January 12, 2004. This payment will cover the period from November 26, 2003 through December 31, 2003 and is based on the current quarterly Class A Common Stock dividend rate of $.4246 per share.

Issuance of the exchange shares will be made through American Stock Transfer and Trust Company ("AST&T"), as exchange agent. Questions relating to the exchange of the Class B Common Stock should be directed to AST&T at (800) 937-5449. Stockholders whose shares are held in the name of a nominee (such as a broker-dealer or other intermediary) will need to instruct the nominee holder to surrender any share certificates representing Class B Common Stock.

A notice of the exchange will be sent to the holders of Class B Common Stock which will contain detailed information relating to the process for holders to exchange their shares.

Reckson Associates Realty Corp. is a self-administered and self-managed real estate investment trust (REIT) specializing in the acquisition, leasing, financing, management and development of Class A office and industrial properties.

Reckson's core growth strategy is focused on the markets surrounding and including New York City. The Company is one of the largest publicly traded owners, managers and developers of Class A office and industrial properties in the New York Tri-State area, with 182 properties comprised of approximately 20.7 million square feet either owned or controlled. For additional information on Reckson Associates Realty Corp., please visit the Company's web site at www.reckson.com.

Certain matters discussed herein, including guidance concerning the Company's future performance, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of results and no assurance can be given that the expected results will be delivered. Such forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those expected. Among those risks, trends and uncertainties are the general economic climate, including the conditions affecting industries in which our principal tenants compete; financial condition of our tenants; changes in the supply of and demand for office properties in the New York Tri-State area; changes in interest rate levels; downturns in rental rate levels in our markets and our ability to lease or re-lease space in a timely manner at current or anticipated rental rate levels; the availability of financing to us or our tenants; changes in operating costs, including utility, security and insurance costs; repayment of debt owed to the Company by third parties (including FrontLine Capital Group); risks associated with joint ventures; liability for uninsured losses or environmental matters; and other risks associated with the development and acquisition of properties, including risks that development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors that could impact Reckson, reference is made to Reckson's filings with the Securities and Exchange Commission. Reckson undertakes no responsibility to update or supplement information contained in this press release.

    CONTACT: Reckson Associates Realty Corp., Melville
             Scott Rechler, Co-CEO
             Michael Maturo, CFO
             631-694-6900 (Phone)
             631-622-6790 (Facsimile)

    SOURCE: Reckson Associates Realty Corp.