Press Release

Mack-Cali Realty Corporation Announces Second Quarter Results

Company Release - 8/3/2006 7:30 AM ET

CRANFORD, N.J.--(BUSINESS WIRE)--Aug. 3, 2006--

Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the second quarter 2006.

    Highlights of the quarter included:

    --  Reported net income per diluted share of $0.43;

    --  Reported funds from operations per diluted share of $0.95;

    --  Completed Gale/Green transactions acquiring services company
        and interests in 28 office properties;

    --  Acquired joint venture interests in seven-building suburban
        Boston office portfolio;

    --  Sold only asset in Dutchess County, New York for $15.1
        million; and

    --  Declared $0.63 per share quarterly common stock dividend.

    FINANCIAL HIGHLIGHTS

Net income available to common shareholders for the second quarter 2006 equaled $26.6 million, or $0.43 per share, versus $36.0 million, or $0.58 per share, for the same quarter last year. For the six months ended June 30, 2006, net income available to common shareholders equaled $59.2 million, or $0.95 per share, versus $58.5 million, or $0.95 per share, for the same period last year.

Funds from operations (FFO) available to common shareholders for the quarter ended June 30, 2006 amounted to $74.4 million, or $0.95 per share, versus $71.4 million, or $0.94 per share, for the quarter ended June 30, 2005. For the six months ended June 30, 2006, FFO available to common shareholders amounted to $155.2 million, or $2.00 per share, versus $138.5 million, or $1.83 per share, for the same period last year.

Total revenues for the second quarter 2006 increased 19.6 percent to $194.3 million as compared to $162.4 million for the same quarter last year. For the six months ended June 30, 2006, total revenues amounted to $357.7 million, an increase of 13.7 percent over total revenues of $314.5 million, for the same period last year.

All per share amounts presented above are on a diluted basis.

The Company had 62,360,388 shares of common stock, 10,000 shares of 8 percent Series C cumulative redeemable perpetual preferred stock ($25,000 liquidation value per share), and 15,681,625 common operating partnership units outstanding as of June 30, 2006.

The Company had a total of 78,042,013 common shares/common units outstanding at June 30, 2006.

As of June 30, 2006, the Company had total indebtedness of approximately $2.4 billion, with a weighted average annual interest rate of 6.08 percent. The Company had a total market capitalization of $6 billion and a debt-to-undepreciated assets ratio of 43.8 percent at June 30, 2006. The Company had an interest coverage ratio of 3.2 times for the quarter ended June 30, 2006.

Mitchell E. Hersh, president and chief executive officer, commented, "During the second quarter, we strengthened and expanded our Northeast presence through our acquisitions of The Gale Real Estate Services Company and interests in a suburban Boston portfolio. We look forward to capitalizing on the growth opportunities resulting from these transactions. We were also able to profitably exit a non-core market with the sale of our sole Dutchess County, New York asset."

    The following is a summary of the Company's recent transactions:

    ACQUISITIONS

On May 9, the Company completed the Gale/Green acquisitions which consisted of:

    --  The Gale Company and related businesses, which specialize in
        construction, property management, leasing and facilities
        management services, for an initial purchase price of $22
        million (subject to earn-out provisions for up to an
        additional $18 million);

    --  Three office properties, aggregating 518,257 square feet and
        located in Parsippany, Ridgefield Park and Edison, New Jersey
        for approximately $106 million; and

    --  Indirect interests in a portfolio of 25 office properties,
        aggregating 3.5 million square feet, primarily located in New
        Jersey, for approximately $116 million.

As part of the Gale transactions, the Company completed the acquisitions of interests in six land/development projects in New Jersey, and an interest in a 530,000 square-foot mixed-use, office/retail complex in Plainsboro, New Jersey for a total investment of approximately $18 million.

On June 1, the Company, through a joint venture with JPMorgan Chase's Special Situation Property Fund and Gale International, acquired an interest in a seven-building class A office portfolio aggregating 667,000 square feet, located in the Boston suburbs. Mack-Cali acquired its interest in the portfolio for approximately $5.2 million. The Special Situation Property Fund owns 70 percent of the venture acquiring the properties, with an entity between Mack-Cali and Gale International owning the other 30 percent. Mack-Cali owns 83.3 percent in the Mack-Cali/Gale International entity. Mack-Cali and Gale International are providing management, leasing and construction services for the portfolio.

More recently, on July 31, the Company acquired 395 West Passaic Street, a four-story, 100,589 square-foot, class A office building, located in Rochelle Park, New Jersey for approximately $21 million.

PROPERTY SALES

In June, the Company sold 300 Westage Business Center Drive, a 118,727 square-foot class A office building in Fishkill, New York, for $15.1 million. The 85.3 percent leased building was the Company's only asset in Dutchess County.

DIVIDENDS

In June, the Company's Board of Directors declared a cash dividend of $0.63 per common share (indicating an annual rate of $2.52 per common share) for the second quarter 2006, which was paid on July 17, 2006 to shareholders of record as of July 6, 2006.

The Board also declared a cash dividend on its 8 percent Series C cumulative redeemable perpetual preferred stock ($25 liquidation value per depositary share, each representing 1/100th of a share of preferred stock) equal to $0.50 per depositary share for the period April 15, 2006 through July 14, 2006. The dividend was paid on July 17, 2006 to shareholders of record as of July 6, 2006.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 90.7 percent leased at June 30, 2006, as compared to 90.4 percent at March 31, 2006.

For the quarter ended June 30, 2006, the Company executed 167 leases totaling 1,204,609 square feet, consisting of 881,513 square feet of office space and 323,096 square feet of office/flex space. Of these totals, 459,758 square feet were for new leases and 744,851 square feet were for lease renewals and other tenant retention transactions.

    Highlights of the quarter's leasing transactions include:

    IN NORTHERN NEW JERSEY:

    --  JPMorgan Chase Bank, NA, a global financial services firm,
        renewed its lease of 68,766 square feet for three years at 300
        Tice Boulevard. The 230,000 square-foot office building,
        located in Woodcliff Lake, New Jersey, is 100 percent leased.

    --  Syncsort Incorporated, a developer of business intelligence
        and data warehousing software, signed a 10-year renewal for
        69,243 square feet at 50 Tice Boulevard in Woodcliff Lake, New
        Jersey. The 235,000 square-foot office building is 100 percent
        leased.

    --  Mobile communications services provider Omnipoint
        Communications Inc., doing business as T-Mobile, signed a new
        lease for 48,875 square feet at 4 Campus Drive in Parsippany,
        New Jersey. The lease carries a term of eight years. 4 Campus
        Drive, located in the Mack-Cali Business Campus, is a 147,475
        square-foot office building and is 96.8 percent leased.

    --  Regulus Group, LLC, a billing services provider, renewed its
        lease of 21,500 square feet at 365 West Passaic Street in
        Rochelle Park, New Jersey for three years. The 212,578
        square-foot office building is 94.8 percent leased.

    IN CENTRAL NEW JERSEY:

    --  RadPharm, Inc., a provider of medical imaging and review
        services, signed a new five-year lease for 43,486 square feet
        at Princeton Overlook in Princeton, New Jersey. Princeton
        Overlook is a 149,600 square-foot office building located at
        100 Overlook Center, and is fully leased.

    IN WESTCHESTER COUNTY, NEW YORK:

    --  CSC Holdings, Inc., the parent company of telecommunications
        and entertainment provider Cablevision Systems, signed a
        renewal of 38,900 square feet for six years at 6 Executive
        Plaza in Yonkers, New York. The 80,000 square-foot office/flex
        property, located in South Westchester Executive Park, is 100
        percent leased.

    --  Vie de France Yamazaki, Inc., the U.S. subsidiary of Yamazaki
        Banking Company, Ltd. of Tokyo, renewed 24,678 square feet at
        525 Executive Boulevard in Elmsford, New York for five years.
        The 61,700 square-foot office/flex property is located in the
        Cross Westchester Executive Park and is 83.6 percent leased.

    --  Fabrication Enterprises, Inc., a supplier of physical and
        occupational therapy products, expanded by 20,717 square feet
        at 250 Clearbrook Road in Elmsford, New York for a term of
        seven years and one month. 250 Clearbrook Road is a 155,000
        square-foot office/flex building in the Cross Westchester
        Executive Park and is 97.3 percent leased.

    IN FAIRFIELD COUNTY, CT:

    --  Fujifilm Medical Systems, USA, Inc. signed a five-year renewal
        of its lease for the entire 88,000 square-foot office/flex
        building located at 419 West Avenue at Stamford Executive Park
        in Stamford, Connecticut.

    --  The William Carter Company, designers and manufacturers of
        children's clothing, signed a transaction totaling 41,033
        square feet at 1000 Bridgeport Avenue in Shelton, Connecticut.
        The transaction represents a one-year renewal of 33,007 square
        feet and 18-month expansion of 8,026 square feet. 1000
        Bridgeport Avenue is a 133,000 square-foot office building and
        is 88.1 percent leased.

    IN SUBURBAN PHILADELPHIA:

    --  Computer Sciences Corporation, a global information technology
        company, renewed leases for two entire office buildings at
        Expressway Corporate Center in Egg Harbor Township, New
        Jersey. The leases, which carry five-year terms, are for
        41,600 square feet at 100 Decadon Drive and 41,250 square feet
        at 200 Decadon Drive.

    --  The Commonwealth of Pennsylvania, Office of Attorney General,
        signed a new 10-year and six-month lease for 32,933 square
        feet at 1000 Madison Avenue in Lower Providence, Pennsylvania.
        The 100,700 square-foot office building is 68.7 percent
        leased.

    IN WASHINGTON, DC:

    --  Public relations firm Qorvis Communications, LLC signed a new
        11-year and four-month lease for 31,077 square feet at 1201
        Connecticut Avenue, N.W. in Washington, DC. The 169,549
        square-foot office building is 100 percent leased.

    IN OTHER MARKETS:

    --  Macrovision Corporation, a developer of software security
        applications, signed a new seven-year lease for 19,622 square
        feet at 795 Folsom Street in San Francisco, California. 795
        Folsom is a 183,445 square-foot office building and is 96.0
        percent leased.

Included in the Company's Supplemental Operating and Financial Data for the second quarter 2006 are schedules highlighting the leasing statistics for both the Company's consolidated and joint venture properties.

The supplemental information is available on Mack-Cali's website, as follows: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.sp.06.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)

ADDITIONAL INFORMATION

The Company expressed comfort with net income and FFO per diluted share for the third quarter and full year 2006, as follows:

                                         Third Quarter       Full Year
                                            2006 Range      2006 Range
----------------------------------------------------------------------

Net income available to common
 shareholders                           $0.25 - $0.27   $1.42 - $1.52
Deduct: Discontinued Operations -
 realized (gains) losses, net of
 minority interest                                 --           (0.06)
Add: Real estate-related depreciation
 and amortization                                0.59            2.29
----------------------------------------------------------------------
Funds from operations available to
 common shareholders                    $0.84 - $0.86   $3.65 - $3.75
======================================================================

These estimates reflect management's view of current market conditions and certain assumptions with regard to rental rates, occupancy levels and other assumptions/projections. Actual results could differ from these estimates.

An earnings conference call with management is scheduled for today, August 3, 2006 at 11:00 a.m. Eastern Time, which will be broadcast live via the Internet at: http://www.corporate-ir.net/ireye/ ir_site.zhtml?ticker=CLI&script=1010&item_id=1360982 (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)

The live conference call is also accessible by calling (347) 284-6930 and requesting the Mack-Cali conference call.

The conference call will be rebroadcast on Mack-Cali's website at http://www.mack-cali.com beginning at 2:00 p.m. Eastern Time on August 3, 2006 through August 10, 2006.

A replay of the call will also be accessible during the same time period by calling (719) 457-0820 and using the pass code 4769582.

Copies of Mack-Cali's 2006 Form 10-Q and Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:

Second Quarter 2006 Form 10-Q: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.10q.06.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)

Second Quarter 2006 Supplemental Operating and Financial Data: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.sp.06.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)

In addition, these items are available upon request from:
Mack-Cali Investor Relations Dept.
11 Commerce Drive, Cranford, NJ 07016-3501
(908) 272-8000 ext. 2484

INFORMATION ABOUT FFO

Funds from operations ("FFO") is defined as net income (loss) before minority interest of unitholders, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from extraordinary items and sales of depreciable rental property (which the Company believes includes unrealized losses on properties held for sale), plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that by excluding the effect of depreciation and gains (or losses) from sales of properties (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs. FFO per share should not be considered as an alternative to net income per share as an indication of the Company's performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company's FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income per share to FFO per share is included in the financial tables accompanying this press release.

ABOUT THE COMPANY

Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 320 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 35.9 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,600 tenants.

Additional information on Mack-Cali Realty Corporation is available on the Company's website at http://www.mack-cali.com.

The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings.

Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the headings "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

                     Mack-Cali Realty Corporation
                Consolidated Statements of Operations
         (in thousands, except per share amounts) (unaudited)

                                                      Quarter Ended
                                                        June 30,
Revenues                                               2006      2005
----------------------------------------------------------------------
Base rents                                         $143,884  $136,141
Escalations and recoveries from tenants              25,248    20,647
Construction services                                11,862        --
Payroll reimbursements                                4,610        --
Real estate services                                  4,312       601
Other income                                          4,409     4,962
----------------------------------------------------------------------
 Total revenues                                     194,325   162,351
----------------------------------------------------------------------

Expenses
----------------------------------------------------------------------
Real estate taxes                                    22,544    20,380
Utilities                                            14,238    12,346
Operating services                                   23,953    22,440
Direct construction costs                            11,354        --
Real estate services salaries, wages and other
 costs                                                5,360        --
General and administrative                           11,957     8,306
Depreciation and amortization                        42,610    38,298
----------------------------------------------------------------------
 Total expenses                                     132,016   101,770
----------------------------------------------------------------------
Operating Income                                     62,309    60,581

Other (Expense) Income
----------------------------------------------------------------------
Interest expense                                    (33,382)  (30,363)
Interest and other investment income                    399       121
Equity in earnings (loss) of unconsolidated joint
 ventures                                              (846)      542
Minority interest in consolidated joint ventures         30        --
----------------------------------------------------------------------
Total other (expense) income                        (33,799)  (29,700)
----------------------------------------------------------------------
Income from continuing operations before
 Minority interest in Operating Partnership          28,510    30,881

Minority interest in Operating Partnership           (5,619)   (5,591)
----------------------------------------------------------------------
Income from continuing operations                    22,891    25,290
Discontinued operations (net of minority
 interest):
 Income from discontinued operations                    322     1,479
 Realized gains (losses) and unrealized losses on
  disposition of rental property, net                 3,921     9,771
----------------------------------------------------------------------
Total discontinued operations, net                    4,243    11,250
----------------------------------------------------------------------
Net income                                           27,134    36,540
 Preferred stock dividends                             (500)     (500)
-------------------------------------------------- --------- ---------
Net income available to common shareholders         $26,634   $36,040
======================================================================

PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share                       $0.43     $0.59
Diluted earnings per common share                     $0.43     $0.58

Dividends declared per common share                   $0.63     $0.63
----------------------------------------------------------------------

Basic weighted average shares outstanding            62,182    61,393
----------------------------------------------------------------------

Diluted weighted average shares outstanding          78,067    75,649
----------------------------------------------------------------------



                     Mack-Cali Realty Corporation
                Consolidated Statements of Operations
         (in thousands, except per share amounts) (unaudited)

                                                    Six Months Ended
                                                        June 30,
Revenues                                               2006      2005
----------------------------------------------------------------------
Base rents                                         $281,866  $268,284
Escalations and recoveries from tenants              48,022    38,931
Construction services                                11,862        --
Payroll reimbursements                                4,610        --
Real estate services                                  4,940     1,217
Other income                                          6,362     6,107
----------------------------------------------------------------------
 Total revenues                                     357,662   314,539
----------------------------------------------------------------------

Expenses
----------------------------------------------------------------------
Real estate taxes                                    44,610    39,404
Utilities                                            29,681    24,242
Operating services                                   46,293    43,684
Direct construction costs                            11,354        --
Real estate services salaries, wages and other
 costs                                                5,360        --
General and administrative                           20,916    15,724
Depreciation and amortization                        82,093    73,908
----------------------------------------------------------------------
 Total expenses                                     240,307   196,962
----------------------------------------------------------------------
Operating Income                                    117,355   117,577

Other (Expense) Income
----------------------------------------------------------------------
Interest expense                                    (64,805)  (58,761)
Interest and other investment income                  1,845       185
Equity in earnings (loss) of unconsolidated joint
 ventures                                              (599)      230
Minority interest in consolidated joint ventures         30       (74)
Gain on sale of investment in marketable
 securities                                          15,060        --
Gain on sale of investment in unconsolidated joint
 ventures                                                --        35
----------------------------------------------------------------------
Total other (expense) income                        (48,469)  (58,385)
----------------------------------------------------------------------
Income from continuing operations before
 Minority interest in Operating Partnership          68,886    59,192

Minority interest in Operating Partnership          (13,106)  (12,147)
----------------------------------------------------------------------
Income from continuing operations                    55,780    47,045
Discontinued operations (net of minority
 interest):
 Income from discontinued operations                    530     3,465
 Realized gains (losses) and unrealized losses on
  disposition of rental property, net                 3,921     8,973
----------------------------------------------------------------------
Total discontinued operations, net                    4,451    12,438
----------------------------------------------------------------------
Net income                                           60,231    59,483
 Preferred stock dividends                           (1,000)   (1,000)
----------------------------------------------------------------------
Net income available to common shareholders         $59,231   $58,483
======================================================================

PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share                       $0.95     $0.95
Diluted earnings per common share                     $0.95     $0.95

Dividends declared per common share                   $1.26     $1.26
----------------------------------------------------------------------

Basic weighted average shares outstanding            62,085    61,289
----------------------------------------------------------------------

Diluted weighted average shares outstanding          77,359    72,478
----------------------------------------------------------------------



                     Mack-Cali Realty Corporation
                 Statements of Funds from Operations
      (in thousands, except per share/unit amounts) (unaudited)

                                                       Quarter Ended
                                                         June 30,
                                                        2006     2005
----------------------------------------------------------------------
Net income available to common shareholders          $26,634  $36,040
Add: Minority interest in Operating Partnership        5,619    5,591
  Minority interest in discontinued operations         1,063    2,538
  Real estate-related depreciation and amortization
   on continuing operations (1)                       45,987   39,008
  Real estate-related depreciation and amortization
   on discontinued operations                             21      242
Add: Discontinued operations - Realized gains
 (losses) and unrealized losses on disposition of
 rental property, net                                 (4,905) (11,975)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                                    $74,419  $71,444
======================================================================

Diluted weighted average shares/units outstanding(3)  78,067   75,649

Funds from operations per share/unit - diluted         $0.95    $0.94

Dividends declared per common share                    $0.63    $0.63

Dividend payout ratio:
Funds from operations-diluted                          66.09%   66.71%

Supplemental Information:
Non-incremental revenue generating capital
 expenditures:
 Building improvements                                $2,436   $1,450
 Tenant improvements and leasing commissions         $18,706  $10,440
Straight-line rent adjustments (4)                    $6,208   $3,345
Amortization of (above)/below market lease
 intangibles, net                                       $361     $976

(1) Includes the Company's share from unconsolidated joint ventures of
    $3,518 and $867 for 2006 and 2005, respectively.

(2) Funds from operations for both periods are calculated in
    accordance with the National Association of Real Estate Investment
    Trusts (NAREIT) definition. For further discussion, see
    "Information About FFO" in this release.

(3) Calculated based on weighted average common shares outstanding,
    assuming redemption of Operating Partnership common and preferred
    units into common shares, (15,599 shares in 2006 and 13,846 shares
    in 2005), plus dilutive Common Stock Equivalents (i.e. stock
    options and warrants).

(4) Includes the Company's share from unconsolidated joint ventures of
    $932 and $43 for 2006 and 2005, respectively.



                     Mack-Cali Realty Corporation
                 Statements of Funds from Operations
      (in thousands, except per share/unit amounts) (unaudited)

                                                      Six Months Ended
                                                              June 30,
                                                       2006      2005
----------------------------------------------------------------------
Net income available to common shareholders         $59,231   $58,483
Add: Minority interest in Operating Partnership      13,106    12,147
  Minority interest in discontinued operations        1,111     2,688
  Real estate-related depreciation and
   amortization on continuing operations (1)         86,461    75,480
  Real estate-related depreciation and
   amortization on discontinued operations              181       832
Deduct: Gain on sale of investment in
 unconsolidated joint venture                            --       (35)
Add: Discontinued operations - Realized gains
 (losses) and unrealized losses on disposition of
 rental property, net                                (4,905)  (11,078)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                                  $155,185  $138,517
======================================================================

Diluted weighted average shares/units outstanding
 (3)                                                 77,359    75,564

Funds from operations per share/unit - diluted        $2.00     $1.83

Dividends declared per common share                   $1.26     $1.26

Dividend payout ratio:
Funds from operations-diluted                         62.81%    68.74%

Supplemental Information:
Non-incremental revenue generating capital
 expenditures:
 Building improvements                               $4,391    $2,564
 Tenant improvements and leasing commissions        $30,676   $20,703
Straight-line rent adjustments (4)                  $12,601    $6,634
Amortization of (above)/below market lease
 intangibles, net                                    $1,025    $1,533

(1) Includes the Company's share from unconsolidated joint ventures of
    $4,657 and $1,890 for 2006 and 2005, respectively.

(2) Funds from operations for both periods are calculated in
    accordance with the National Association of Real Estate Investment
    Trusts (NAREIT) definition. For further discussion, see
    "Information About FFO" in this release.

(3) Calculated based on weighted average common shares outstanding,
    assuming redemption of Operating Partnership common and preferred
    units into common shares, (14,968 shares in 2006 and 10,752 shares
    in 2005), plus dilutive Common Stock Equivalents (i.e. stock
    options and warrants).

(4) Includes the Company's share from unconsolidated joint ventures of
    $1,141 and $90 for 2006 and 2005, respectively.



                     Mack-Cali Realty Corporation
        Statements of Funds from Operations Per Diluted Share
  (amounts are per diluted share, except share count in thousands)
                              (unaudited)

                                                        Quarter Ended
                                                          June 30,
                                                         2006    2005
----------------------------------------------------------------------
Net income available to common shareholders             $0.43   $0.58
Add: Real estate-related depreciation and amortization
 on continuing operations (1)                            0.59    0.52
    Real estate-related depreciation and amortization
     on discontinued operations                            --      --
    Realized gains (losses) and unrealized losses on
     disposition of rental property, net                (0.06)  (0.16)
Minority interest/rounding adjustment                   (0.01)     --
----------------------------------------------------------------------
Funds from operations available to common shareholders
 (2)                                                    $0.95   $0.94
======================================================================

Diluted weighted average shares/units outstanding (3)  78,067  75,649
----------------------------------------------------------------------

(1) Includes the Company's share from unconsolidated joint ventures of
    $0.05 and $0.01 for 2006 and 2005, respectively.

(2) Funds from operations for both periods are calculated in
    accordance with the National Association of Real Estate Investment
    Trusts (NAREIT) definition. For further discussion, see
    "Information About FFO" in this release.

(3) Calculated based on weighted average common shares outstanding,
    assuming redemption of Operating Partnership common and preferred
    units into common shares (15,599 shares in 2006 and 13,846 shares
    in 2005), plus dilutive Common Stock Equivalents (i.e. stock
    options and warrants).



                     Mack-Cali Realty Corporation
        Statements of Funds from Operations Per Diluted Share
  (amounts are per diluted share, except share count in thousands)
                              (unaudited)

                                                      Six Months Ended
                                                          June 30,
                                                         2006    2005
----------------------------------------------------------------------
Net income available to common shareholders             $0.95   $0.95
Add: Real estate-related depreciation and
 amortization on continuing operations (1)               1.12    1.00
    Real estate-related depreciation and amortization
     on discontinued operations                            --    0.01
    Realized gains (losses) and unrealized losses on
     disposition of rental property, net                (0.06)  (0.15)
Minority interest/rounding adjustment                   (0.01)   0.02
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                                       $2.00   $1.83
======================================================================

Diluted weighted average shares/units outstanding (3)  77,359  75,564
----------------------------------------------------------------------

(1) Includes the Company's share from unconsolidated joint ventures of
    $0.06 and $0.03 for 2006 and 2005, respectively.

(2) Funds from operations for both periods are calculated in
    accordance with the National Association of Real Estate Investment
    Trusts (NAREIT) definition. For further discussion, see
    "Information About FFO" in this release.

(3) Calculated based on weighted average common shares outstanding,
    assuming redemption of Operating Partnership common and preferred
    units into common shares (14,968 shares in 2006 and 10,752 shares
    in 2005), plus dilutive Common Stock Equivalents (i.e. stock
    options and warrants).



                     Mack-Cali Realty Corporation
                      Consolidated Balance Sheets
           (in thousands, except share amounts) (unaudited)


                                                June 30,  December 31,
                                                   2006          2005
----------------------------------------------------------------------
ASSETS:
Rental property
 Land and leasehold interests                  $697,029      $637,653
 Buildings and improvements                   3,742,413     3,539,003
 Tenant improvements                            345,207       307,664
 Furniture, fixtures and equipment                7,620         7,432
----------------------------------------------------------------------
                                              4,792,269     4,491,752
Less-accumulated deprec. & amort.              (779,587)     (722,980)
----------------------------------------------------------------------
 Net investment in rental property            4,012,682     3,768,772
Cash and cash equivalents                        20,417        60,397
Marketable securities available for sale at
 fair value                                          --        50,847
Investments in unconsolidated joint ventures    197,923        62,138
Unbilled rents receivable, net                  104,027        92,692
Deferred charges and other assets, net          245,343       197,634
Restricted cash                                  16,341         9,221
Accounts receivable, net                         25,689         5,801
----------------------------------------------------------------------

Total assets                                 $4,622,422    $4,247,502
======================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes                       $1,630,950    $1,430,509
Revolving credit facility                       317,000       227,000
Mortgages, loans payable and other
 obligations                                    419,659       468,672
Dividends and distributions payable              49,612        48,178
Accounts payable, accrued expenses and other
 liabilities                                    121,964        85,481
Rents received in advance and security
 deposits                                        50,598        47,685
Accrued interest payable                         36,283        27,871
----------------------------------------------------------------------
 Total liabilities                            2,626,066     2,335,396
----------------------------------------------------------------------

Minority interests:
 Operating Partnership                          489,592       400,819
 Consolidated joint ventures                      2,169            --
----------------------------------------------------------------------
Total minority interests                        491,761       400,819
----------------------------------------------------------------------
Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000
 shares authorized, 10,000
 and 10,000 shares outstanding, at
  liquidation preference                         25,000        25,000
Common stock, $0.01 par value, 190,000,000
 shares authorized,
 62,360,388 and 62,019,646 shares
  outstanding                                       623           620
Additional paid-in capital                    1,687,871     1,682,141
Unamortized stock compensation                       --        (6,105)
Dividends in excess of net earnings            (208,899)     (189,579)
Accumulated other comprehensive loss                 --          (790)
----------------------------------------------------------------------
 Total stockholders' equity                   1,504,595     1,511,287
----------------------------------------------------------------------

Total liabilities and stockholders' equity   $4,622,422    $4,247,502
======================================================================

Source: Mack-Cali Realty Corporation

Contact: Mack-Cali Realty Corporation Barry Lefkowitz, 908-272-8000 or Virginia Sobol, 908-272-8000