Senior Management/2007 Highlights

2007's financial and operating results were the best in Vornado's history – and the first quarter of 2008, which will be published on May 6, 2008, will be well ahead of 2007's first quarter. Please see the preceding charts and the following appendices showing data on EBITDA in total and by business segment, financing activity, acquisition activity, and leasing and occupancy figures.

David Greenbaum runs our flagship New York Office business and New York development group. David, working with Mike, Michelle and Dan Guglielmone, was the lead for the Project America (1290 Avenue of the Americas and 555 California Street) and 350 Park Avenue acquisitions. He is the man on Moynihan, 20 X Square, Harlem Park, Hudson Yards, etc. In fourth quarter 2007, New York leased 545,000 square feet at a 90.7% (cash basis) increase over expiring leases, a record for us and, I am certain, a record for anybody. Our biggest 2007 deal in New York involved AXA Equitable Life Insurance, which leased 815,000 square feet at 1290 Avenue of the Americas. Here, we extended 415,000 square feet at market with AXA, and recaptured 400,000 square feet of below-market space, of which 156,000 square feet has already been leased.

Mitchell Schear is President of the Vornado/Charles E. Smith Washington, DC Office Division. Laurie Kramer is MVP. Mitchell, with Ernie Wittich, was the architect of the H Street transaction. He and Brendan did the 243,000 square foot lease with law firm Mayer Brown for all of 1999 K Street as the foundation was just being poured. The deal took three weeks – extraordinary. And Sam is going to Penn.

Sandeep Mathrani runs Retail, our 1.8 million square feet of stores in Manhattan, our enclosed regional malls and our power centers. We all love firsts and flagships, and in 2007 we leased the first JC Penney store in Manhattan, the first Topshop flagship in America (think UK high fashion and supermodel Kate Moss as spokesperson) and the Madewell flagship, J. Crew's start-up. Sandeep, with John Birnbaum, is also responsible for retail development, including Bergen Town Center and Alexander's Rego Park, which are in construction, and Springfield Mall, in development. Sandeep also heads our India investments.

Chris Kennedy has run the Merchandise Mart since Vornado acquired the business. Supported by Mark Falanga, John Brennen, Joan Ulrich and Tom Mitchell, he has made acquisitions taking us from coast (Los Angeles) to coast (Boston), and built in-house or acquired 81 trade shows. For various operating reasons, the Mart's numbers disappointed in 2007. The Mart budget calls for a rebound in 2008.

Michelle Felman, EVP - Acquisitions, working with Mike and across all businesses, prospects, analyzes, negotiates, and executes our growth. I admire her instincts and judgment.

Wendy Silverstein, EVP - Capital Markets, does a terrific job running the right hand side of our balance sheet.

Wendy and Michelle jointly run our mezzanine loan business and frequently work together on all matter of acquisitions, ideas and transactions. The appendices to this letter detailing Michelle's acquisition activity and Wendy's capital markets activity are a record of accomplishment.

Joe Macnow, CFO, is our hall of fame master of accounting and control. His team leaders include Bob Entin, Craig Stern, Ross Morrison, Matt Iocco, and Wilbur Paes, together with an organization that numbers 300 people.

(3) In first quarter 2008, New York Office leased 345,000 square feet at a 46.1% (cash basis) increase over expiring leases.