First Potomac Realty Trust Acquires Sterling Park Business Center for $30.87 Million; Expects to...

BETHESDA, Md. -- First Potomac Realty Trust (NYSE:FPO) today announced that it has acquired Sterling Park Business Center for $30.87 million in cash. The property is comprised of Sterling Park One and Two, two one-story flex/office buildings totaling 127,814 square feet, and an additional 42.5

Sterling Park Business Center is located in the Dulles Corridor, adjacent to 403/405 Glenn Drive, a flex/industrial property the Company purchased in October 2005. The existing buildings are currently 61% leased. The investment increases First Potomac's presence in the Northern Virginia market to 2.7 million square feet, including six properties within ten miles of Sterling Park Business Center.

The 42.5 acres of developable land are zoned for light industrial and office use. The land is subdivided into seven lots and has most of the necessary infrastructure in place to begin construction within the next 12 to 18 months. The new development plans complement the Company's existing development program, which includes six projects totaling 282,000 square feet adjacent to other First Potomac properties and on which construction is expected to begin this year.

Commenting on the acquisition, Nicholas R. Smith, First Potomac's chief investment officer, stated, "This unique investment is very attractive to us because of the value-added opportunity to lease up the two existing buildings, as well as the ability to add buildings to meet market demand. The Dulles Corridor market has been steadily improving over the last few years, and we feel this acquisition will allow us to take advantage of the underserved small-bay, flex/office market."

The $50 million loan from Key Bank, N.A. has a term of up to five years and currently bears interest at LIBOR plus 1.45%. Excess proceeds from the loan were used to pay down the balance on the Company's unsecured revolving credit facility. This transaction was contemplated when the Company issued its earnings guidance on February 23, 2006.

About First Potomac Realty Trust

First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning and operating industrial and flex properties in the Washington, D.C. metropolitan area and other major markets in Virginia and Maryland. The Company owns a 123-building portfolio totaling approximately 9.2 million square feet. The Company's largest tenant is the U.S. Government. The Company has completed $86 million in three transactions separate since the beginning of this year and $641 million in acquisitions in 27 separate transactions since it completed its public offering in October 2003.

First Potomac's press releases are available at www.first-potomac.com or by contacting the Company at 301-986-9200.

Forward Looking Statements

The forward-looking statements contained in this press release are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from the Company's expectations include changes in general or regional economic conditions; the Company's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; the Company's ability to complete acquisitions on acceptable terms; and other risks detailed in the Company's Annual Report on Form 10-K and described from time to time in the Company's filings with the SEC. Many of these factors are beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.