Investor Relations

Press Release

Equity Residential Announces $150 Million 6.48% Preferred Share Offering

Company Release - 5/20/2003
      Calls $100 Million 7.625% Series L Preferred Shares for Redemption

CHICAGO, May 20 /PRNewswire-FirstCall/ -- Equity Residential (NYSE: EQR) announced today that it has priced the offering of $150 million or six million depositary shares, each representing a one-tenth fractional interest in a share of the Company's 6.48% Series N Cumulative Redeemable Preferred Shares. The depositary shares have a $25.00 liquidation value, provide a 6.48% annual cumulative dividend, are not convertible and are redeemable at the option of the Company on and after June 19, 2008. Subject to customary closing conditions, the new depositary shares will be issued on June 19, 2003 and the first dividend, for the period from June 19 through October 15, in the amount of $0.522 per share will be made on October 15, 2003 to holders of record on September 19, 2003. Future quarterly dividends will be in the amount of $0.405 per depositary share.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010801/ERPTCLOGO )

In addition, the Company announced that it has called for redemption all $100 million of its 7.625% Series L Cumulative Redeemable Preferred Shares of Beneficial Interest. The Series L Preferred Shares will be redeemed at a price of $25.00 per share, plus $0.4183159 in accrued and unpaid dividends, for an aggregate redemption price of $25.4183159 per share.

The Series L redemption date will be June 19, 2003. From the redemption date forward, dividends will no longer accrue and holders will have no rights other than the right to receive the redemption price, without interest, upon surrender of the Series L Preferred Shares. Payment of the redemption price will be made only upon presentation and surrender of certificates representing the Series L Preferred Shares to EquiServe Trust Company, the transfer agent for the Preferred Shares, during its usual business hours at the addresses specified in the Notice of Redemption.

The Notice of Redemption and related materials will be mailed to holders of the Series L Preferred Shares on May 20, 2003. Questions relating to the Notice of Redemption and related materials should be directed to EquiServe Trust Company, the redemption agent, telephone number (800) 733-5001.

Merrill Lynch & Co. acted as the sole lead manager and Citigroup Global Markets, Morgan Stanley and Wachovia acted as senior co-managers of the Series N Preferred Share offering. This communication shall not constitute an offer to sell or a solicitation of any offer to buy any of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus relating to these securities may be obtained when available by contacting Merrill Lynch & Co. at: Merrill Lynch Syndicate Desk, 4 World Financial Center, 9th Floor, New York, New York 10080 or (212) 449-1000.

Equity Residential is the largest publicly traded apartment company in America. Nationwide, Equity Residential owns or has investments in 1,027 properties in 36 states consisting of 221,249 units. For more information on Equity Residential, please visit our website at www.equityapartments.com .

Forward-Looking Statements

This press release contains forward-looking statements concerning the Company's offering of its Series N depositary shares. The closing of such offering is dependent upon the satisfaction of customary closing conditions, including, without limitation, general economic and geopolitical conditions which are beyond the Company's control.

SOURCE  Equity Residential
    -0-                             05/20/2003
    /CONTACT:  Marty McKenna of Equity Residential, +1-312-928-1901/
    /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20010801/ERPTCLOGO
              AP Archive:  http://photoarchive.ap.org
              PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/
    /Web site:  http://www.equityapartments.com /
    (EQR)

CO:  Equity Residential; Merrill Lynch & Co.
ST:  Illinois
IN:  FIN RLT
SU:  OFR



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0316 05/20/200318:14 EDThttp://www.prnewswire.com