Contact:

Barry Lefkowitz

Virginia Sobol

Executive Vice President

Vice President, Marketing

and Chief Financial Officer

and Public Relations

(908) 272-8000

(908) 272-8000

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Reported net income per diluted share of $0.52;

–

Reported funds from operations per diluted share of $1.05;

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Earned $16 million from investment and sale of marketable securities;

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Acquired a seven-building office complex in Maryland for $162 million;

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Signed definitive agreements for the Gale transactions; and

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Declared $0.63 per share quarterly common stock dividend.

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Acquire The Gale Real Estate Services Company for $12 million in cash, $10 million in common operating partnership units, and up to an additional $18 million in cash based on an earn-out formula. The Company will also acquire from affiliates of The Gale Real Estate Company stakes in certain development/joint ventures with institutional investors on terms to be determined prior to closing;

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Acquire substantially all the ownership interests in 13 class A office properties, valued at $378 million, and totaling 1.9 million square feet in Northern and Central New Jersey; and

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Acquire approximately one-half of the ownership interests in seven class A office properties, valued at $127.5 million, and totaling approximately 900,000 square feet, also in Northern and Central New Jersey.

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Allstate Insurance Company signed a 34,142 square-foot transaction at 61 South Paramus Road in Paramus, New Jersey, representing a five-year expansion of 11,118 square feet and a four-year extension of 23,024 square feet. 61 South Paramus Road is a 269,191 square-foot office building which is 97.4 percent leased.

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True Partners Consulting LLC, a tax and business advisory firm, signed a new 10-year lease for 13,236 square feet at 105 Eisenhower Parkway in Roseland, New Jersey. 105 Eisenhower Parkway is a 220,000 square-foot office building which is 80.7 percent leased.

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Ameriprise Financial Services, Inc., a financial advisory firm, signed a new five year, six-month lease for 12,968 square feet at 5 Sylvan Way in Parsippany, New Jersey. 5 Sylvan Way is a 151,383 square-foot office building which is 98 percent leased.

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Garban, LLC, a subsidiary of ICAP plc, expanded its presence at Harborside Financial Center Plaza 5 in Jersey City, New Jersey by 11,809 square feet for 11 years and seven months. The firm now leases 159,834 square feet at the 977,225 square-foot office building which is 97.6 percent leased.

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PricewaterhouseCoopers, LLP, a global accounting firm, signed a new four year, six-month lease for 11,624 square feet at 101 Hudson Street in Jersey City, New Jersey. 101 Hudson is a 1.25 million square-foot office building which is 100 percent leased.

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Lomurro, Davison, Eastman & Munoz, PA, a law firm, signed a four-year renewal of its lease for 19,023 square feet at 100 Willowbrook Road in Freehold, New Jersey. The 60,557 square-foot office building is located in the Monmouth Executive Center which is 74.8 percent leased.

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Allstate Insurance Company renewed 18,538 square feet at 65 Jackson Drive in Cranford, New Jersey for five years. 65 Jackson Drive is an 82,778 square-foot office building which is 100 percent leased.

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Rutgers University signed a new seven-year, seven-month lease for 12,482 square feet at 500 College Road East in Plainsboro, New Jersey. 500 College Road East is a 158,235 square-foot office building which is 91.1 percent leased.

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Allstate Insurance Company signed a 31,013 square-foot transaction at 224 Strawbridge Drive in Moorestown, New Jersey, representing a renewal of 25,497 square feet and expansion of 5,516 square feet. 224 Strawbridge Drive is a 74,000 square-foot office building which is 92.8 percent leased.

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Quaker Chroma Imaging, a digital imaging and photographic services company, signed a new eight-year, three-month lease for 20,000 square feet at 225 Executive Drive in Moorestown, New Jersey. The 50,600 square-foot office/flex building is located in the Moorestown West Corporate Center which is 48.6 percent leased.

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Progressive Casualty Insurance, a subsidiary of The Progressive Corporation, signed a transaction totaling 27,105 square feet at 1 Executive Boulevard in Yonkers, New York. In addition to a five-year expansion of 10,254 square feet, Progressive’s existing lease of 16,851 square feet was extended for three years and eight months. 1 Executive Boulevard is a 112,000 square-foot office building located in the South Westchester Executive Park which is 100 percent leased.

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Wachovia Bank, N.A. renewed its lease of 22,500 square feet at 50 Main Street in White Plains, New York for 10 years and five months. 50 Main Street is a 309,000 square-foot office building located at the Westchester Financial Center in downtown White Plains which is 100 percent leased.

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Montefiore Medical Center renewed its lease for 19,000 square feet at 200 Corporate Boulevard South in Yonkers, New York for 10 years. 200 Corporate Boulevard South, also located in the South Westchester Executive Park, is an 84,000 square-foot office/flex building which is 99.8 percent leased.

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The State of Colorado signed a three-year renewal of its lease for 15,341 square feet at 400 South Colorado Boulevard in Denver, Colorado. The building is a 125,415 square-foot office building which is 87.9 percent leased.

Second Quarter

Full Year

2006 Range

2006 Range

Net income available to common shareholders

$0.30 - $0.32

$1.40 - $1.56

Add: Real estate-related depreciation and amortization

         0.53

         2.12

Funds from operations available to common shareholders

$0.83 - $0.85

$3.52 - $3.68

Mack-Cali Realty Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts) (unaudited)

Quarter Ended

March 31,

2006

2005

Revenues

Base rents

$             138,075

$           132,236

Escalations and recoveries from tenants

22,820

18,339

Parking and other

2,581

1,761

Total revenues

163,476

152,336

Expenses

Real estate taxes

22,100

19,051

Utilities

15,443

11,896

Operating services

22,358

21,269

General and administrative

8,959

7,418

Depreciation and amortization

39,502

35,629

Interest expense

31,423

28,398

Interest and dividend income

(1,446)

(64)

Total expenses

138,339

123,597

Income from continuing operations before minority interests, equity in

earnings of unconsolidated joint ventures and gains on sales of investments

25,137

28,739

Minority interest in Operating Partnership

(4,626)

(6,596)

Minority interest in consolidated joint ventures

--

(74)

Equity in earnings (loss) of unconsolidated joint ventures

(net of minority interest), net

201

(277)

Gain on sale of investment in marketable securities (net of minority interest)

12,232

--

Gain on sale of investment in unconsolidated joint ventures (net of minority interest)

--

31

Income from continuing operations

32,944

21,823

Discontinued operations (net of minority interest):

Income from discontinued operations

153

1,918

Realized gains (losses) and unrealized losses on disposition of rental property, net

--

(798)

Total discontinued operations, net

153

1,120

Net income

33,097

22,943

Preferred stock dividends

(500)

(500)

Net income available to common shareholders

$               32,597

$             22,443

PER SHARE DATA:

Basic earnings per common share

$                  0.53

$                0.37

Diluted earnings per common share

$                  0.52

$                0.36

Dividends declared per common share

$                  0.63

$                0.63

Basic weighted average shares outstanding

61,988

61,184

Diluted weighted average shares outstanding

76,642

69,273

Mack-Cali Realty Corporation

Statements of Funds from Operations

(in thousands, except per share/unit amounts) (unaudited)

Quarter Ended

March 31,

2006

2005

Net income available to common shareholders

$       32,597

$           22,443

Add: Minority interest in Operating Partnership

4,626

6,596

Minority interest in equity in earnings of unconsolidated joint ventures

46

(35)

Minority interest in gain on sale of investment in unconsolidated joint ventures

--

4

Minority interest in gain on sale of investment in marketable securities

2,828

--

Minority interest in discontinued operations

35

141

Real estate-related depreciation and amortization on continuing operations (1)

40,494

36,491

Real estate-related depreciation and amortization on discontinued operations

140

571

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

--

897

Funds from operations available to common shareholders (2)

$       80,766

$           67,073

Diluted weighted average shares/units outstanding (3)

76,642

75,478

Funds from operations per share/unit – diluted

$            1.05

$                0.89

Dividends declared per common share

$            0.63

$                0.63

Dividend payout ratio:

Funds from operations-diluted

59.78%

70.89%

Supplemental Information:

Non-incremental revenue generating capital expenditures:

Building improvements

$          1,955

$              1,114

Tenant improvements and leasing commissions

$       11,970

$           10,263

Straight-line rent adjustments (4)

$          6,393

$              3,289

Amortization of (above)/below market lease intangibles, net

$             664

$                 557

(1)    Includes the Company’s share from unconsolidated joint ventures of $1,139 and $1,023 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, (14,330 shares in 2006 and 13,829 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 $209 and $47 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

March 31,

2006

2005

Net income available to common shareholders

$            0.52

$             0.36

Add: Real estate-related depreciation and amortization on continuing operations (1)

0.53

0.48

Real estate-related depreciation and amortization on discontinued operations

--

0.01

Realized gains (losses) and unrealized losses on disposition of rental property, net

--

0.01

Minority interest/rounding adjustment

--

0.03

Funds from operations available to common shareholders (2)

$            1.05

$             0.89

Diluted weighted average shares/units outstanding (3)

76,642

75,478

(1)    Includes the Company’s share from unconsolidated joint ventures of $0.01 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 (14,330 shares in 2006 and 13,829 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)

March 31,

December 31,

2006

2005

ASSETS:

Rental property

Land and leasehold interests

$       677,409

$        637,653

Buildings and improvements

3,637,419

3,539,003

Tenant improvements

318,703

307,664

Furniture, fixtures and equipment

7,428

7,432

4,640,959

4,491,752

Less-accumulated deprec. & amort.

(747,039)

(722,980)

3,893,920

3,768,772

Rental property held for sale, net

10,484

--

Net investment in rental property

3,904,404

3,768,772

Cash and cash equivalents

11,605

60,397

Marketable securities available for sale at fair value

--

50,847

Investments in unconsolidated joint ventures

63,164

62,138

Unbilled rents receivable, net

98,875

92,692

Deferred charges and other assets, net

216,770

197,634

Restricted cash

14,013

9,221

Accounts receivable, net

6,134

5,801

Total assets

$   4,314,965

$    4,247,502

LIABILITIES AND STOCKHOLDERS’ EQUITY:

Senior unsecured notes

$   1,630,683

$    1,430,509

Revolving credit facility

92,000

227,000

Mortgages, loans payable and other obligations

385,077

468,672

Dividends and distributions payable

48,724

48,178

Accounts payable, accrued expenses and other liabilities

88,309

85,481

Rents received in advance and security deposits

52,160

47,685

Accrued interest payable

19,851

27,871

Total liabilities

2,316,804

2,335,396

Minority interest in Operating Partnership

485,581

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,

62,230,447 and 62,019,646 shares outstanding

622

620

Additional paid-in capital

1,683,199

1,682,141

Unamortized stock compensation

--

(6,105)

Dividends in excess of net earnings

(196,241)

(189,579)

Accumulated other comprehensive loss

--

(790)

Total stockholders’ equity

1,512,580

1,511,287

Total liabilities and stockholders’ equity

$   4,314,965

$    4,247,502