Press Release

Mack-Cali Realty Corporation Announces Second Quarter Results

Company Release - 7/31/2008 7:49 AM ET

EDISON, N.J.--(BUSINESS WIRE)--

Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the second quarter 2008.

    Recent highlights include:

    --  Reported net income per diluted share of $0.28;

    --  Reported funds from operations per diluted share of $0.93; and

    --  Declared $0.64 per share quarterly common stock dividend.

    FINANCIAL HIGHLIGHTS

Net income available to common shareholders for the second quarter 2008 equaled $18.3 million, or $0.28 per share, versus $51.1 million, or $0.75 per share, for the same quarter last year. For the six months ended June 30, 2008, net income available to common shareholders equaled $33.3 million, or $0.51 per share, versus $69.7 million, or $1.04 per share, for the same period last year.

Funds from operations (FFO) available to common shareholders for the quarter ended June 30, 2008 amounted to $75.2 million, or $0.93 per share, versus $73.2 million, or $0.88 per share, for the quarter ended June 30, 2007. For the six months ended June 30, 2008, FFO available to common shareholders amounted to $146.1 million, or $1.81 per share, versus $143.4 million, or $1.74 per share, for the same period last year.

Total revenues for the second quarter 2008 were $192.8 million as compared to $200.5 million for the same quarter last year. For the six months ended June 30, 2008, total revenues amounted to $387.5 million, compared to $393.8 million for the same period last year.

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

The Company had 65,756,271 shares of common stock, 10,000 shares of 8 percent Series C cumulative redeemable perpetual preferred stock ($25,000 liquidation value per share), and 14,931,138 common operating partnership units outstanding as of June 30, 2008. The Company had a total of 80,687,409 common shares/common units outstanding at June 30, 2008.

As of June 30, 2008, the Company had total indebtedness of approximately $2.2 billion, with a weighted average annual interest rate of 5.74 percent. The Company had a total market capitalization of $5.0 billion and a debt-to-undepreciated assets ratio of 40.6 percent at June 30, 2008. The Company had an interest coverage ratio of 3.4 times for the quarter ended June 30, 2008.

Mitchell E. Hersh, president and chief executive officer, commented, "Despite what is clearly a challenging economic environment, we're pleased to report strong leasing activity and increased occupancies. We're confident that Mack-Cali remains well-poised to navigate through this period and to capitalize on opportunities as they begin to emerge."

DIVIDENDS

In June, the Company's Board of Directors declared a cash dividend of $0.64 per common share (indicating an annual rate of $2.56 per common share) for the second quarter 2008, which was paid on July 14, 2008 to shareholders of record as of July 3, 2008.

The Board also declared a cash dividend on the Company's 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, 2008 through July 14, 2008. The dividend was paid on July 15, 2008 to shareholders of record as of July 3, 2008.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 92.3 percent leased at June 30, 2008, as compared to 92.1 percent at March 31, 2008.

For the quarter ended June 30, 2008, the Company executed 158 leases totaling 1,287,422 square feet, consisting of 915,784 square feet of office space, 347,088 square feet of office/flex space and 24,550 square feet of industrial/warehouse space. Of these totals, 412,114 square feet were for new leases and 875,308 square feet were for lease renewals and other tenant retention transactions.

    Highlights of the quarter's leasing transactions include:

    IN NORTHERN NEW JERSEY:

    --  SAVVIS Communications Corporation, a provider of hosting and
        application services, signed a five-year, 71,474 square-foot
        renewal at Harborside Financial Center Plaza 3 in Jersey City.
        Plaza 3 is a 725,600 square-foot office building that is 99.2
        percent leased.

    --  Tullett Prebon Holdings Corp., a global inter-dealer broker
        and division of Tullett Prebon plc, signed a transaction
        totaling 100,759 square feet at 101 Hudson Street in Jersey
        City, representing an expansion of 37,387 square feet for 15
        years, as well as a 12-year and seven month extension of
        63,372 square feet. 101 Hudson is a 1,246,283 square-foot
        office building that is 100 percent leased.

    --  Morgan Stanley & Co. Inc., a global financial services firm,
        signed a transaction totaling 27,289 square feet at 150 JFK
        Parkway in Short Hills, representing a 23,343 square-foot
        renewal for five years and three months, as well as a 3,946
        square-foot expansion for seven years and four months. The
        247,476 square-foot office building is 100 percent leased.

    --  Toyota Motor Credit Corporation, the U.S. financing arm of
        Toyota Financial Services, signed a 22,236 square-foot renewal
        at 4 Gatehall Drive in Parsippany for five years.

    --  Also at 4 Gatehall Drive, Ericsson Inc., a provider of
        telecommunications equipment and related services, signed a
        new, five-year and two-month lease for 15,127 square feet. The
        248,480 square-foot office building is 95.7 percent leased.

    --  Atlantic Inertial Systems, Inc., a provider of products and
        systems for aircraft, weapons and land systems applications,
        signed a six-year, 19,854 square-foot renewal at 20 Commerce
        Way in Totowa. The 42,540 square-foot office/flex building is
        100 percent leased.

    IN CENTRAL NEW JERSEY:

    --  DMJM Harris, Inc., the U.S. transportation flagship operation
        of AECOM Technology Corporation, signed a new 10-year lease
        for 59,652 square feet at 30 Knightsbridge Road - Building 5,
        in Piscataway. The 332,607 square-foot office building is 80.8
        percent leased.

    --  Registrar & Transfer Company, a provider of securities
        transfer services, signed a transaction totaling 41,150 square
        feet at 10-12 Commerce Drive in Cranford, representing a
        26,315 square-foot renewal for five years and a 14,835
        square-foot expansion for seven years and two months. The
        72,260 square-foot office building is 95.1 percent leased.

    --  A global engineering company signed a three-year renewal of
        39,060 square feet at 200 Horizon Center Drive in Hamilton
        Township. The 45,770 square-foot office/flex building is 100
        percent leased.

    IN WESTCHESTER COUNTY, NEW YORK:

    --  AFP Imaging Corporation, a provider of diagnostic imaging
        products, signed a 10-year renewal for 47,735 square feet at
        250 Clearbrook Road in Elmsford. The 155,000 square-foot
        office/flex building is 97.3 percent leased.

    --  Bunge Management Services Inc., an international agribusiness
        and food company, signed transactions totaling 26,550 at two
        buildings in White Plains, consisting of an expansion of 7,050
        square feet for four years and nine months at 50 Main Street
        and a one-year renewal of 19,500 square feet at 11 Martine
        Avenue. 11 Martine Avenue is a 180,000 square-foot office
        building and is 84.6 percent leased.

    --  Also at 50 Main Street in White Plains, HQ Global Workplaces
        LLC, a provider of full service office rentals, signed a
        five-year renewal for 22,064 square feet. The 309,000
        square-foot office building is 99.4 percent leased.

    --  Con-Way Freight Inc., a provider of freight transportation and
        logistics services, signed a five-year renewal for the entire
        22,100 square-foot industrial/warehouse building located at 6
        Warehouse Lane in Elmsford.

    --  J.G.B. Health Facilities Corporation, an affiliate of The
        Jewish Guild for the Blind, signed a new seven-year lease for
        12,010 square feet at 4 Executive Plaza in Yonkers. The 80,000
        square-foot office/flex building is 100 percent leased.

    IN FAIRFIELD COUNTY, CONNECTICUT:

    --  Basso Capital Management LP, a closed-end investment office,
        signed a transaction totaling 16,439 square feet at 1266 East
        Main Street in Stamford, representing a three-year and
        four-month expansion of 4,247 square feet as well as a
        one-year renewal of 12,192 square feet. The 179,260 square
        foot office building is 76.8 percent leased.

    IN SUBURBAN PHILADELPHIA:

    --  A global engineering company signed two leases totaling 99,035
        square feet at 224 and 228 Strawbridge Drive in Moorestown,
        New Jersey. The transactions represent a seven-year lease for
        the entire 74,565 square foot office building located at 228
        Strawbridge Drive, as well as a seven-year two-month lease for
        24,470 square feet at 224 Strawbridge Drive, a 74,000
        square-foot office building that is 98.4 percent leased.

    --  Regal Wine Imports Inc., wholesale trader of wine and
        distilled beverages, signed a 10-year and three-month new
        lease for 25,895 square feet at 2 Commerce Drive in
        Moorestown, New Jersey. The 49,000 square-foot office/flex
        building is 74.1 percent leased.

    IN WASHINGTON, DC/MARYLAND:

    --  McNamee, Hosea, Jernigan, Kim, Greenan & Walker, P.A., a law
        firm, signed a seven-year renewal for 12,119 square-feet at
        6411 Ivy Lane in Greenbelt, Maryland.

    --  Also at 6411 Ivy Lane, Lockheed Martin Corporation, a defense
        company, signed a two-year renewal for 11,331 square feet.

    --  Additionally at 6411 Ivy Lane, Bacon, Thornton & Palmer LLP, a
        law firm, signed a 10-year renewal for 10,105 square feet. The
        138,405 square-foot office building is 88.7 percent leased.

Included in the Company's Supplemental Operating and Financial Data for the second quarter 2008 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.08.pdf

ADDITIONAL INFORMATION

The Company expressed comfort with net income and FFO per diluted share for the full year 2008, as follows:

                                                           Full Year
                                                          2008 Range
-------------------------------------------------------- -------------
Net income available to common shareholders              $0.96 - $1.06
Add: Real estate-related depreciation and amortization       2.63
-------------------------------------------------------- -------------
Funds from operations available to common shareholders   $3.59 - $3.69
======================================================== =============

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, July 31, 2008 at 10:00 a.m. Eastern Time, which will be broadcast live via the Internet at:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=

96021&eventID=1881586

The live conference call is also accessible by calling (913) 312-1511 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 July 31, 2008 through August 7, 2008.

A replay of the call will also be accessible during the same time period by calling (719) 457-0820 and using the pass code 8322473.

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

Second Quarter 2008 Form 10-Q:

http://www.mack-cali.com/graphics/shareholders/pdfs/2nd.quarter.

10q.08.pdf

Second Quarter 2008 Supplemental Operating and Financial Data:

http://www.mack-cali.com/graphics/shareholders/pdfs/2nd.quarter.

sp.08.pdf

    In addition, these items are available upon request from:

    Mack-Cali Investor Relations Dept.

    343 Thornall Street, Edison, New Jersey 08837-2206

    (732) 590-1000 ext. 1143

    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 294 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 33.7 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,200 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 heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, 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                                          2008         2007
----------------------------------------------------------------------
Base rents                                    $   148,087   $  142,482
Escalations and recoveries from tenants            26,586       25,766
Construction services                              11,305       23,469
Real estate services                                3,227        4,959
Other income                                        3,588        3,854
----------------------------------------------------------------------
 Total revenues                                   192,793      200,530
----------------------------------------------------------------------

Expenses
----------------------------------------------------------------------
Real estate taxes                                  24,125       23,852
Utilities                                          19,660       15,329
Operating services                                 27,152       27,348
Direct construction costs                          10,329       22,634
General and administrative                         11,237       12,870
Depreciation and amortization                      47,586       43,823
----------------------------------------------------------------------
 Total expenses                                   140,089      145,856
----------------------------------------------------------------------
Operating income                                   52,704       54,674

Other (Expense) Income
----------------------------------------------------------------------
Interest expense                                 (31,340)     (31,333)
Interest and other investment income                  302        1,571
Equity in earnings (loss) of unconsolidated
 joint ventures                                       884      (1,696)
Minority interest in consolidated joint
 ventures                                              16          214
Gain on sale of marketable securities                 471           --
----------------------------------------------------------------------
Total other (expense) income                     (29,667)     (31,244)
----------------------------------------------------------------------
Income from continuing operations before
 Minority interest in Operating Partnership        23,037       23,430
Minority interest in Operating Partnership        (4,193)      (4,197)
----------------------------------------------------------------------
Income from continuing operations                  18,844       19,233
Discontinued operations (net of minority
 interest):
 Income from discontinued operations                   --          598
Realized gains (losses) and unrealized losses
 On disposition of rental property, net                --       31,747
----------------------------------------------------------------------
Total discontinued operations, net                     --       32,345
----------------------------------------------------------------------
Net income                                         18,844       51,578
 Preferred stock dividends                          (500)        (500)
----------------------------------------------------------------------
Net income available to common shareholders   $    18,344   $   51,078
======================================================================

PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share               $      0.28   $     0.75

Diluted earnings per common share             $      0.28   $     0.75

Dividends declared per common share           $      0.64   $     0.64
----------------------------------------------------------------------

Basic weighted average shares outstanding          65,423       67,799
----------------------------------------------------------------------

Diluted weighted average shares outstanding        80,585       83,193
----------------------------------------------------------------------
                     Mack-Cali Realty Corporation
                Consolidated Statements of Operations
         (in thousands, except per share amounts) (unaudited)


                                                 Six Months Ended
                                                     June 30,
Revenues                                         2008          2007
----------------------------------------------------------------------
Base rents                                   $    296,690   $  282,039
Escalations and recoveries from tenants            52,310       51,986
Construction services                              24,066       45,810
Real estate services                                6,669        7,700
Other income                                        7,771        6,252
----------------------------------------------------------------------
 Total revenues                                   387,506      393,787
----------------------------------------------------------------------

Expenses
----------------------------------------------------------------------
Real estate taxes                                  48,161       47,322
Utilities                                          41,088       32,874
Operating services                                 53,125       51,974
Direct construction costs                          22,983       43,545
General and administrative                         22,332       23,940
Depreciation and amortization                      95,308       85,274
----------------------------------------------------------------------
 Total expenses                                   282,997      284,929
----------------------------------------------------------------------
Operating income                                  104,509      108,858

Other (Expense) Income
----------------------------------------------------------------------
Interest expense                                 (63,800)     (62,269)
Interest and other investment income                  858        3,188
Equity in earnings (loss) of unconsolidated
 joint ventures                                     (264)      (3,927)
Minority interest in consolidated joint
 ventures                                             139          441
Gain on sale of marketable securities                 471           --
----------------------------------------------------------------------
Total other (expense) income                     (62,596)     (62,567)
----------------------------------------------------------------------
Income from continuing operations before
 Minority interest in Operating Partnership        41,913       46,291
Minority interest in Operating Partnership        (7,620)      (8,418)
----------------------------------------------------------------------
Income from continuing operations                  34,293       37,873
Discontinued operations (net of minority
 interest):
 Income from discontinued operations                   --        1,037
Realized gains (losses) and unrealized
 losses
 On disposition of rental property, net                --       31,747
----------------------------------------------------------------------
Total discontinued operations, net                     --       32,784
----------------------------------------------------------------------
Net income                                         34,293       70,657
 Preferred stock dividends                        (1,000)      (1,000)
----------------------------------------------------------------------
Net income available to common shareholders  $     33,293   $   69,657
======================================================================

PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share              $       0.51   $     1.04

Diluted earnings per common share            $       0.51   $     1.04

Dividends declared per common share          $       1.28   $     1.28
----------------------------------------------------------------------

Basic weighted average shares outstanding          65,397       66,753
----------------------------------------------------------------------

Diluted weighted average shares outstanding        80,547       82,220
----------------------------------------------------------------------
                     Mack-Cali Realty Corporation
                 Statements of Funds from Operations
      (in thousands, except per share/unit amounts) (unaudited)


                                                    Quarter Ended
                                                       June 30,
                                                   2008         2007
----------------------------------------------------------------------
Net income available to common shareholders     $   18,344   $  51,078
Add: Minority interest in Operating Partnership      4,193       4,197
  Minority interest in discontinued operations          --       7,247
  Real estate-related depreciation and
   amortization on continuing operations (1)        52,697      49,569
  Real estate-related depreciation and
   amortization on discontinued operations              --          18
Deduct: Discontinued operations - Realized gains
 (losses) and
        unrealized losses on disposition of
         rental property, net                           --    (38,860)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                               $   75,234   $  73,249
======================================================================

Diluted weighted average shares/units
 outstanding (3)                                    80,585      83,193

Funds from operations per share/unit - diluted  $     0.93   $    0.88

Dividends declared per common share             $     0.64   $    0.64

Dividend payout ratio:
Funds from operations-diluted                       68.55%      72.69%

Supplemental Information:
Non-incremental revenue generating capital
 expenditures:
 Building improvements                          $    1,792   $   2,648
 Tenant improvements and leasing commissions    $   15,970   $  10,049
Straight-line rent adjustments (4)              $    1,584   $   2,531
Amortization of (above)/below market lease
 intangibles, net (5)                           $    2,009   $   1,024


(1) Includes the Company's share from unconsolidated joint ventures of
 $5,166 and $5,905 for 2008 and 2007, 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 units into common
 shares, (14,955 shares in 2008 and 15,191 shares in 2007), plus
 dilutive Common Stock Equivalents (i.e. stock options).

(4) Includes the Company's share from unconsolidated joint ventures of
 $369 and $649 for 2008 and 2007, respectively.

(5) Includes the Company's share from unconsolidated joint ventures of
 $417 and $399 for 2008 and 2007, respectively.
                     Mack-Cali Realty Corporation
                 Statements of Funds from Operations
      (in thousands, except per share/unit amounts) (unaudited)


                                                   Six Months Ended
                                                       June 30,
                                                   2008        2007
----------------------------------------------------------------------
Net income available to common shareholders     $   33,293 $    69,657
Add: Minority interest in Operating Partnership      7,620       8,418
  Minority interest in discontinued operations          --       7,349
  Real estate-related depreciation and
   amortization on continuing operations (1)       105,195      96,375
  Real estate-related depreciation and
   amortization on discontinued operations              --         424
Deduct: Discontinued operations - Realized gains
 (losses) and
        unrealized losses on disposition of
         rental property, net                           --    (38,860)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                               $  146,108 $   143,363
======================================================================

Diluted weighted average shares/units
 outstanding (3)                                    80,547      82,220

Funds from operations per share/unit - diluted  $     1.81 $      1.74

Dividends declared per common share             $     1.28 $      1.28

Dividend payout ratio:                              70.57%      73.41%
Funds from operations-diluted

Supplemental Information:
Non-incremental revenue generating capital
 expenditures:
 Building improvements                          $    4,850 $     5,137
 Tenant improvements and leasing commissions    $   28,132 $    21,822
Straight-line rent adjustments (4)              $    3,285 $     7,240
Amortization of (above)/below market lease
 intangibles, net (5)                           $    3,984 $     1,591


(1) Includes the Company's share from unconsolidated joint ventures of
 $10,050 and $11,415 for 2008 and 2007, 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 units into common
 shares, (14,970 shares in 2008 and 15,238 shares in 2007), plus
 dilutive Common Stock Equivalents (i.e. stock options).

(4) Includes the Company's share from unconsolidated joint ventures of
 $686 and $1,446 for 2008 and 2007, respectively.

(5) Includes the Company's share from unconsolidated joint ventures of
 $831 and $671 for 2008 and 2007, 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,
                                                     2008       2007
----------------------------------------------------------------------
Net income available to common shareholders       $     0.28 $    0.75
Add: Real estate-related depreciation and
 amortization on continuing operations (1)              0.65      0.60
Deduct: Discontinued operations - Realized gains
 (losses) and
unrealized losses on disposition of rental
 property, net                                            --    (0.47)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                                 $     0.93 $    0.88
======================================================================

Diluted weighted average shares/units outstanding
 (3)                                                  80,585    83,193
----------------------------------------------------------------------


(1) Includes the Company's share from unconsolidated joint ventures of
 $0.06 and $0.07 for 2008 and 2007, 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 units into common
 shares (14,955 shares in 2008 and 15,191 shares in 2007), plus
 dilutive Common Stock Equivalents (i.e. stock options).
                     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,
                                                   2008         2007
----------------------------------------------------------------------
Net income available to common shareholders     $    0.51    $    1.04
Add: Real estate-related depreciation and
 amortization on continuing operations (1)           1.31         1.17
    Real estate-related depreciation and
     amortization on discontinued operations           --         0.01
Deduct: Discontinued operations - Realized
 gains (losses) and
unrealized losses on disposition of rental
 property, net                                         --       (0.47)
       Minority interest/rounding adjustment       (0.01)       (0.01)
----------------------------------------------------------------------
Funds from operations available to common
 shareholders (2)                               $    1.81    $    1.74
======================================================================

Diluted weighted average shares/units
 outstanding (3)                                   80,547       82,220
----------------------------------------------------------------------


(1) Includes the Company's share from unconsolidated joint ventures of
 $0.12 and $0.14 for 2008 and 2007, 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 units into common
 shares (14,970 shares in 2008 and 15,238 shares in 2007), plus
 dilutive Common Stock Equivalents (i.e. stock options).
                     Mack-Cali Realty Corporation
                     Consolidated Balance Sheets
           (in thousands, except share amounts) (unaudited)

                                                June 30,  December 31,
                                                  2008         2007
--------------------------------------------------------- ------------
ASSETS:
Rental property
 Land and leasehold interests                  $  728,560   $  726,253
 Buildings and improvements                     3,775,929    3,753,088
 Tenant improvements                              410,150      397,132
 Furniture, fixtures and equipment                  8,888        8,956
--------------------------------------------------------- ------------
                                                4,923,527    4,885,429
 Less-accumulated deprec. & amort.              (965,864)    (907,013)
--------------------------------------------------------- ------------
 Net investment in rental property              3,957,663    3,978,416
Cash and cash equivalents                          33,777       24,716
Marketable securities available for sale at
 fair value                                            --        4,839
Investments in unconsolidated joint ventures      179,831      181,066
Unbilled rents receivable, net                    110,202      107,761
Deferred charges and other assets, net            227,342      246,386
Restricted cash                                    12,894       13,613
Accounts receivable, net                           19,578       36,405
--------------------------------------------------------- ------------

Total assets                                   $4,541,287   $4,593,202
========================================================= ============

LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes                         $1,633,079   $1,632,547
Revolving credit facility                         293,000      250,000
Mortgages, loans payable and other obligations    308,268      329,188
Dividends and distributions payable                52,140       52,099
Accounts payable, accrued expenses and other
 liabilities                                      132,173      142,778
Rents received in advance and security deposits    52,835       51,992
Accrued interest payable                           34,129       34,193
--------------------------------------------------------- ------------
 Total liabilities                              2,505,624    2,492,797
--------------------------------------------------------- ------------

Minority interests:
 Operating Partnership                            443,267      456,436
 Consolidated joint ventures                        1,295        1,414
--------------------------------------------------------- ------------
Total minority interests                          444,562      457,850
--------------------------------------------------------- ------------
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,
 65,756,271 and 65,558,073 shares outstanding         657          656
Additional paid-in capital                      1,885,794    1,886,467
Dividends in excess of net earnings             (320,350)    (269,521)
Accumulated other comprehensive income                 --         (47)
--------------------------------------------------------- ------------
 Total stockholders' equity                     1,591,101    1,642,555
--------------------------------------------------------- ------------

Total liabilities and stockholders' equity     $4,541,287   $4,593,202
========================================================= ============

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Source: Mack-Cali Realty Corporation

Contact: Mack-Cali Realty Corporation Barry Lefkowitz Executive Vice President and Chief Financial Officer 732-590-1000 or Virginia Sobol Vice President, Marketing and Public Relations 732-590-1000