REIT to Take Fourth Quarter 2008 Impairment

Equity Residential, Chicago, is cutting back on the number of planned development projects it will undertake and, as a result, will incur a non-cash charge in the fourth quarter of 2008 of approximately $115 million ($0.39 per share). The charge reflects impairments in the value of land holdings for five potential development projects that the company no longer plans to pursue. The impairment charge is the difference between each parcel's estimated fair value and current capitalized carrying value, which includes pursuit costs. The impairment charge does not affect the company's continued compliance with its financial or debt covenants. "We have said for some time that maintaining ample liquidity and credit capacity are our foremost priorities and as a result we would be very cautious regarding new development projects," said David J. Neithercut, president and chief executive. "Our view on development was solidified by the significant acceleration last fall in the deterioration in the credit markets and economy as a whole. We will not start any new projects for our own account until capital markets and the economy show signs of improvement." For more information on Equity Residential, visit http://www.equityresidential.com.