CarrAmerica Under Contract to Sell Three Dallas Office Buildings; Adjusts Fourth Quarter 2005 Earnings Guidance

WASHINGTON, Nov. 22 /PRNewswire-FirstCall/ -- CarrAmerica Realty Corporation today announced that it is under contract to sell three office buildings -- 5000 Quorum, Quorum North and Quorum Place -- in Dallas, Texas, subject to normal closing contingencies. Based on the final sales price of these three buildings, CarrAmerica will recognize an additional impairment charge of approximately $1.8 million in the fourth quarter of 2005, reflecting our expected loss on the sale of the properties. The Company had previously recognized an impairment loss of $4.0 million related to the potential sale of two of the Quorum buildings in the first quarter of 2005. The $1.8 million charge will decrease fourth quarter diluted earnings per share and diluted Funds from Operations available to common shareholders (Diluted FFO) by $.03 per share. The impact of this impairment charge is not included in the Company's earnings guidance for the fourth quarter and full year 2005, which was previously announced by the Company on October 27, 2005.

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With the sale of these three buildings and the pending sale of a 77,000 square foot building, CarrAmerica's Dallas portfolio will consist of approximately 467,000 square feet of Class A office buildings that are wholly owned and approximately 2.0 million square feet of Class A office buildings that are owned in joint ventures.

CarrAmerica owns, develops and operates office properties in 12 markets throughout the United States. The company has become one of America's leading office companies by meeting the needs of its customers with superior service, a large portfolio of quality office properties and extraordinary development capabilities. Currently, CarrAmerica and its affiliates own, directly or through joint ventures, interests in a portfolio of 294 operating office properties, totaling approximately 27 million square feet. CarrAmerica's markets include Austin, Chicago, Dallas, Denver, Los Angeles, Orange County, Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle and metropolitan Washington, D.C. For additional information on CarrAmerica, including space availability, visit our web site at http://www.carramerica.com/.

Estimates of Diluted FFO and earnings per share and certain other statements in this release, including management's expectations about, among other things, operating performance and financial conditions, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, dividends, achievements or transactions of the company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such factors include, among others, the following: national and local economic, business and real estate conditions that will, among other things, affect demand for office space, the extent, strength and duration of any economic recovery, including the effect on demand for office space and the creation of new office development, availability and creditworthiness of tenants, the level of lease rents, and the availability of financing for both tenants and us; adverse changes in real estate markets, including, among other things, the extent of tenant bankruptcies, financial difficulties and defaults, the extent of future demand for office space in our core markets and barriers to entry into markets which we may seek to enter in the future, the extent of the decreases in rental rates, our ability to identify and consummate attractive acquisitions on favorable terms, our ability to consummate any planned dispositions in a timely manner and on acceptable terms, our ability to successfully reinvest the proceeds from dispositions in other properties or markets with improved returns, our ability to complete development projects on time and within budget and our ability to stabilize such projects, and changes in operating costs, including real estate taxes, utilities, insurance and security costs; actions, strategies and performance of affiliates that we may not control or companies in which we have made investments; ability to obtain insurance at a reasonable cost; ability to maintain our status as a REIT for federal and state income tax purposes; ability to raise capital; effect of any terrorist activity or other heightened geopolitical crisis; governmental actions and initiatives; and environmental/safety requirements. For a further discussion of these and other factors that could impact the company's future results, performance, achievements or transactions, see the documents filed by the company from time to time with the Securities and Exchange Commission, and in particular the section titled, "The Company -- Risk Factors" in the company's Annual Report or Form 10-K.