Contact: JOSEPH MACNOW (201) 587-8541 OCTOBER 31, 2002 Alexander's, Inc. operating results for the quarter ended September 30, 2002 PARAMUS, NEW JERSEY..........ALEXANDER'S, INC. (New York Stock Exchange: ALX) today reported that funds from operations for the quarter ended September 30, 2002 was $7,249,000 or $1.45 per diluted share, compared to $3,117,000, or $.62 per diluted share, for the quarter ended September 30, 2001. Net income for the quarter ended September 30, 2002 was $17,380,000, or $3.48 per diluted share, versus $2,242,000, or $.45 per diluted share, for the quarter ended September 30, 2001. Funds from operations for the nine months ended September 30, 2002 was $10,240,000, or $2.05 per diluted share, compared to $9,731,000, or $1.95 per diluted share, for the nine months ended September 30, 2001. Net income for the nine months ended September 30, 2002 was $19,778,000, or $3.95 per diluted share, versus $29,919,000, or $5.98 per diluted share, for the nine months ended September 30, 2001. Both funds from operations and net income for the three months ended September 30, 2002 include $4,236,000 or .85 per diluted share, for the reversal of stock appreciation rights expense recorded in the second quarter of 2002. Net income for the three and nine months ended September 30, 2002, includes a gain on sale of the Company's Third Avenue property of $10,366,000 or $2.07 per diluted share and for the nine months ended September 30, 2001, a gain on sale of its Fordham Road property of $19,026,000, or $3.80 per diluted share, and an extraordinary gain of $3,534,000, or $.71 per diluted share, resulting from early extinguishment of debt on such property. Funds from operations for the three and nine months ended September 30, 2002 and the nine months ended September 30, 2001 does not include these items. Below is a table of Operating Results: The following tables reconciles net income to funds from operations: Funds from operations does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of funds from operations. Funds from operations should not be considered as an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity. Management considers funds from operations a relevant supplemental measure of operating performance because it provides a basis for comparison among REITs; however, funds from operations may not be comparable to similarly titled measures reported by other REITs since the Company's method of calculating funds from operations is different from that used by the National Association of Real Estate Investment Trusts (“NAREIT”). Funds from operations, as defined by NAREIT, represents net income before depreciation and amortization, extraordinary items and gains or losses on sales of real estate. Funds from operations as disclosed above has been modified to adjust for the effect of straight-lining of property rentals for rent escalations and leasing fee expenses paid directly to Vornado Realty Trust. Alexander's, Inc. is a real estate investment trust which has six properties in the greater New York City metropolitan area. 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. ###