Scott Rechler, Reckson's CEO & Marathon Asset Management in Real Estate Buyout

The executive management team of Reckson Associates, led by Scott Rechler and Marathon Asset Management announced they have agreed to acquire a real estate portfolio valued in excess of $2 billion from SL Green Realty Corp.

SL Green Realty Corp. and Reckson Associates Realty Corp. ("Reckson") earlier today announced that they have entered into a definitive agreement pursuant to which SL Green will acquire Reckson for approximately $6.0 billion, including the assumption of debt totaling approximately $2.0 billion. Both transactions have been approved by both public companies' boards of directors and are expected to close simultaneously in January 2007. Closing is subject to customary conditions, including approval by Reckson's stockholders.

Led by Scott Rechler, Chairman and CEO of Reckson Associates, and his senior management team, the Marathon-Rechler entity will own and operate a portfolio of real estate assets currently owned by Reckson, including properties on New York's Long Island, thirteen properties in New York's Westchester County, twenty office properties and three development parcels in New Jersey, and all of Reckson's interests in its Australian listed property trust. Also included in the acquisition are Reckson's RSVP venture and a real estate loan portfolio. Mr. Rechler stated, "After eleven exciting years in the public arena, we have decided to recognize the significant value we have created in our portfolio and combine with SL Green to create the premier office REIT in the metropolitan New York area."

Marathon Asset Management, a diversified hedge fund and investment management firm with $7.5 billion in capital and $13 billion in assets, will join forces with Mr. Rechler and his senior management team to establish a venture to manage this unique and highly valued portfolio of real estate assets in the New York area. According to Bruce Richards, CEO of Marathon Asset Management, "Scott has built Reckson from a family-owned enterprise into one of the best performing REITs, with a world-class portfolio of properties and an extraordinary acquisition, development and property management team during his ten years as chief executive of the company. We do not believe there is a chief executive in the real estate business more qualified to manage these properties than Scott Rechler."

"Scott's knowledge of the New York area property market is extraordinary, and Marathon is delighted to have the opportunity to be Scott's partner as he has shown repeatedly his unique skills with respect to value creation," added Jon Halpern, who is a former senior executive of Reckson and now in charge of Marathon Real Estate. The Marathon Real Estate group, run by Jon Halpern and his partner Ron Bernstein, formerly of Goldman Sachs, has acquired and developed value-added real estate assets throughout the U.S. and abroad in office, residential, retail, and hotel properties.

Goldman Sachs and Greenhill & Co. served as financial advisors to the independent directors of Reckson and rendered fairness opinions in the transaction. Paul Hastings was counsel to Marathon Asset Management and Fried Frank served as legal counsel for the Scott Rechler's new firm. Wachtell Lipton Rosen and Katz served as legal counsel to the independent directors of Reckson. Citigroup served as a financial advisor to Reckson. Merrill Lynch acted as exclusive financial advisor to SL Green and Clifford Chance US LLP served as legal counsel to SL Green.

About Marathon Asset Management

Marathon Asset Management LLC is a global asset management company with $7.5 billion in capital under management and $13 billion in assets. Founded in 1998, Marathon maintains its headquarters in New York City, with offices in London, Hong Kong, Washington, D.C. and Los Angeles. Marathon employs 130 professionals who specialize in global debt, equity and real estate. Marathon Asset Management LLC is a Registered Investment Adviser with the Securities and Exchange Commission.

About Reckson

Reckson is a self-administered and self-managed real REIT specializing in the acquisition, leasing, financing, management and development of Class A office properties. Reckson's core growth strategy is focused on properties located in New York City and the surrounding Tri-State area markets. Reckson is one of the largest publicly traded owners, managers and developers of Class A office properties in the New York Tri-State area, and wholly owns, has substantial interests in, or has under contract, a total of 101 properties comprised of approximately 20.2 million square feet.

Forward-looking statement:

This press release does not constitute an offer of any securities for sale. In connection with the proposed transaction, SL Green and Reckson expect to file a proxy statement/prospectus as part of a registration statement regarding the proposed transaction with the Securities and Exchange Commission. Investors and security holders are urged to read the proxy statement/prospectus as it will contain important information about SL Green and Reckson and the proposed transaction. Investors and security holders may obtain a free copy of the definitive proxy statement/prospectus and other documents when filed by SL Green and Reckson with the SEC at the SEC's website (www.sec.gov). The definitive proxy statement/prospectus and other relevant documents may also be obtained free of charge from SL Green or Reckson by directing such request to: SL Green, 420 Lexington Avenue, New York, NY 10170, Attention: Investor Relations, or Reckson, 225 Broadhollow Road, Melville, NY 11747, Attention: Investor Relations. Investors and security holders are urged to read the proxy statement, prospectus and other relevant material when they become available before making any voting or investment decisions with respect to the merger.