Contact: JOSEPH MACNOW (201) 587-8541 MARCH 02, 2004 Alexander's, Inc. operating results for the year ended December 31, 2003 PARAMUS, NEW JERSEY..........ALEXANDER'S, INC. (New York Stock Exchange: ALX) today reported that net loss for the year ended December 31, 2003 was $17,742,000, or $3.55 per diluted share, versus net income of $23,584,000, or $4.72 per diluted share, for the year ended December 31, 2002. Funds from operations ("FFO") for the year ended December 31, 2003 was a negative $10,245,000(1), or $2.05 per diluted share, compared to FFO of $19,921,000(1), or $3.98 per diluted share, for the year ended December 31, 2002. Net loss for the quarter ended December 31, 2003 was $4,590,000, or $0.92 per diluted share, versus net income of $3,806,000, or $0.76 per diluted share, for the quarter ended December 31, 2002. FFO for the quarter ended December 31, 2003 was a negative $2,139,000(1), or $0.43 per diluted share, compared to FFO of $5,565,000(1), or $1.11 per diluted share, for the quarter ended December 31, 2002. FFO and net loss are after an accrual for stock appreciation rights compensation expense of $44,917,000, or $8.98 per diluted share, for the year ended December 31, 2003 and $16,286,000, or $3.26 per diluted share, for the quarter ended December 31, 2003. FFO and net loss for the year and quarter ended December 31, 2003 include income of (i) $1,286,000, or $0.26 per diluted share, resulting from the forfeiture by the prospective purchaser of the Flushing property of a non-refundable deposit and (ii) $1,206,000, or $0.24 per diluted share, representing the reversal of previously accrued contingent liabilities. Net income for the year ended December 31, 2002 includes a gain on the sale of the Company's Third Avenue property of $10,366,000, or $2.07 per diluted share. Alexander's, Inc. is a real estate investment trust which has six properties in the greater New York City metropolitan area. Below is a table of operating results: The following table reconciles net (loss) income to FFO: FFO does not represent cash generated from operating activities in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the consolidated statements of cash flows. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net (loss) income as an indicator of the Company's operating performance. Management considers FFO a relevant supplemental measure of operating performance because it provides a basis for comparison among real estate investments trusts ("REITs"). FFO is computed in accordance with the National Association of Real Estate Investment Trust's ("NAREIT") standards, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with NAREIT's definition or that interpret NAREIT's definition differently. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. ###