RPB Republic Property Tr

Republic Property Trust (NYSE: RPB) and its operating partnership Republic Property Limited Partnership (�RPLP�, together with Republic Property Trust, the �Company�) announced today that RPLP has filed a lawsuit against 25 Massachusetts Avenue Property LLC (the �Owner�), the owner of Republic Square I (the �Property�). As previously disclosed, on May 29, 2007, RPLP (i) re-tendered a lease (�Lease�) to the Owner for certain space at the Property and (ii) exercised its exclusive option to purchase the fee interest in the Property pursuant to the Option Agreement among the Owner, 660 North Capitol Street Property LLC and RPLP dated as of November 28, 2005 (the �Option Agreement�). On May 30, 2007, the Owner rejected the Lease and claimed that �there has been no effective exercise of the Option.� As previously disclosed, two of the Company�s founders and Trustees, Richard L. Kramer and Steven A. Grigg, currently control the Owner. In response to the Owner�s rejection, on June 15, 2007, RPLP filed a lawsuit against the Owner in the Court of Chancery in the State of Delaware. This lawsuit asserts, among other things, that (i) by refusing to accept RPLP�s option exercise the Owner has breached the Option Agreement and (ii) by deciding not to refinance a construction loan on the Property and rejecting the Lease, the Owner has breached the covenant of good faith and fair dealing implied in every contract governed by the laws of the District of Columbia. RPLP seeks, among other remedies, to obtain (i) an injunction against the Owner�s sale of the Property to any party other than RPLP, (ii) a declaration that the Lease and option exercise are effective and (iii) an order that the Owner specifically perform its obligation to sell the Property to RPLP pursuant to the Option Agreement. Also on June 15, 2007, RPLP filed a Notice of Pendency of Action (Lis Pendens) in the Office of the Recorder of Deeds in the District of Columbia, in order to record RPLP�s interest in the Property as reflected in the Delaware Chancery Court action. The outcome of this lawsuit is uncertain. The Trust cannot provide any assurance that the purchase and sale of the Property pursuant to the Option Agreement will occur. About Republic Property Trust Republic Property Trust is a fully integrated, self-administered and self-managed real estate investment trust formed to own, operate, lease, acquire and develop primarily Class A office properties. The Company�s current portfolio is focused in the Washington, D.C. metropolitan, or Greater Washington, D.C. market. Safe Harbor Various statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "strategy," "plan," "project," "believe," "anticipate," "intend," "should," "will," "expect," "estimate," and similar expressions identify these forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to differ materially from historical results or from any results expressed or implied by these forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the competitive environment in which the Company operates; financing risks; property management risks; the level and volatility of interest rates; financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; the Company's ability to pay its estimated distribution at its current rate; the impact of potential management changes; the Company's ability to acquire its option properties; the outcome of any material litigation; the outcome of its evaluation of strategic alternatives; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by it from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K (as amended by Form 10-K/A) and Quarterly Reports on Form 10-Q, each of which discusses these and other factors that could adversely affect the Company's results. The Company does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.