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Second Quarter 2008:

• Second Quarter 2008 Funds from Operations (FFO) Per Share (Diluted) of $1.51, up 6%, Compared to Second Quarter 2007 FFO Per Share (Diluted) of $1.42

• Second Quarter 2008 Total Revenues up 17%, FFO Available to Common Stockholders up 15%, Compared to Second Quarter 2007

• Second Quarter 2008 Earnings Per Share From Continuing Operations (Diluted) of $0.67

• Second Quarter 2008 GAAP Same Property Revenues Less Operating Expenses up 3.7%

• Executed 37 Leases for 530,000 Rentable Square Feet in Second Quarter 2008; Approximately 1.1 Million Rentable Square Feet Leased in First Half 2008

• Second Quarter 2008 GAAP Rental Rate Increase of 19.4% on Renewed/Released Space

• Second Quarter 2008 Occupancy Increases to 95.0%

• Second Quarter 2008 Operating Margins at 74%

• Sold One Property Previously Classified as Held For Sale for $15 Million; Sold Seven Properties for $84 Million in First Half 2008

• In August 2008, Executed 100,000 Square Foot Lease Plus Option for an Additional 50,000 Square Feet with Pfizer Inc. at the Alexandria Center for Science and Technology at Mission Bay

Alexandria Real Estate Equities, Inc. today announced operating and financial results for the second quarter ended June 30, 2008.

For the second quarter of 2008, we reported total revenues of $110,054,000 and FFO available to common stockholders of $48,054,000, or $1.51 per share (diluted), compared to total revenues of $93,769,000 and FFO available to common stockholders of $41,607,000, or $1.42 per share (diluted), for the second quarter of 2007. Comparing the second quarter of 2008 to the second quarter of 2007, total revenues increased 17%, FFO available to common stockholders increased 15% and FFO per share (diluted) increased 6%. For the six months ended June 30, 2008, we reported total revenues of $220,013,000 and FFO available to common stockholders of $95,030,000, or $2.98 per share (diluted), before non-cash impairment charges, compared to total revenues of $188,555,000 and FFO available to common stockholders of $81,952,000, or $2.80 per share (diluted), before a preferred stock redemption charge, for the six months ended June 30, 2007. Comparing the six months ended June 30, 2008 to the six months ended June 30, 2007, total revenues increased 17%, FFO available to common stockholders and FFO per share (diluted) increased 16% and 6%, respectively, before non-cash impairment and preferred stock redemption charges. In the first quarter of 2008, we incurred non-cash impairment charges aggregating $6,635,000, or $0.21 per share (diluted), related to assets “held for sale” and certain investments, and in the first quarter of 2007 we recognized a preferred stock redemption charge of $2,799,000, or $0.10 per share (diluted).

FFO is a non-GAAP measure widely used by publicly traded real estate investment trusts. A reconciliation of GAAP net income available to common stockholders to FFO available to common stockholders and FFO available to common stockholders after supplemental adjustments on both an aggregate and per share (diluted) basis, is included in the financial information accompanying this press release. The primary reconciling item between GAAP net income available to common stockholders and FFO available to common stockholders is depreciation and amortization expense. Depreciation and amortization expense for the three months ended June 30, 2008 and 2007 was $27,003,000 and $22,654,000, respectively. Depreciation and amortization expense for the six months ended June 30, 2008 and 2007 was $52,813,000 and $46,172,000, respectively. Net income available to common stockholders for the second quarter of 2008 was $21,303,000, or $0.67 per share (diluted), compared to net income available to common stockholders of $21,334,000, or $0.73 per share (diluted), for the second quarter of 2007. Net income available to common stockholders for the second quarter of 2008 included a gain of $182,000 on the sale of one property. Net income available to common stockholders for the second quarter of 2007 included a gain of $2,340,000 on the sale of one property. Excluding gains on sales of properties, net income available to common stockholders for the second quarter of 2008 was $21,121,000, or $0.66 per share (diluted), compared to net income available to common stockholders of $18,994,000, or $0.65 per share (diluted), for the second quarter of 2007. Net income available to common stockholders for the six months ended June 30, 2008 was $56,063,000, or $1.76 per share (diluted), compared to net income available to common stockholders of $36,442,000, or $1.24 per share (diluted), for the six months ended June 30, 2007. Net income available to common stockholders for the six months ended June 30, 2008 included aggregate gains of $20,395,000 on sales of seven properties and non- cash impairment charges aggregating $6,635,000 related to one property “held for sale” as of June 30, 2008, a property sold during the second quarter of 2008 and certain investments. Net income available to common stockholders for the six months ended June 30, 2007 included a gain on sales of two properties of $3,461,000 and a preferred stock redemption charge of $2,799,000. Excluding gains on sales of properties and non-cash impairment and preferred stock redemption charges, net income available to common stockholders for the six months ended June 30, 2008 was $42,303,000, or $1.33 per share (diluted), compared to net income available to common stockholders of $35,780,000, or $1.22 per share (diluted), for the six months ended June 30, 2007.

For the second quarter of 2008, we executed a total of 37 leases for approximately 530,000 rentable square feet of space at 29 different properties (excluding month-to-month leases). Of this total, approximately 343,000 rentable square feet related to new or renewal leases of previously leased space and approximately 187,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 187,000 rentable square feet, approximately 124,000 rentable square feet were delivered from our development or redevelopment programs, with the remaining approximately 63,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 19.4% higher (on a GAAP basis) than rental rates for expiring leases.

For the six months ended June 30, 2008, we executed a total of 82 leases for approximately 1,095,000 square feet of space at 48 different properties (excluding month-to-month leases). Of this total, approximately 722,000 square feet were for new or renewal leases related to previously leased space and approximately 373,000 square feet were for redeveloped, developed or previously vacant space. Of the 373,000 square feet, approximately 182,000 square feet were delivered from our redevelopment or development programs, with the remaining approximately 191,000 square feet for previously vacant space. Rental rates for new or renewal leases were on average approximately 16.5% higher (on a GAAP basis) than rental rates for expiring leases.

During the second quarter of 2008, we sold one property located in the San Diego market with approximately 49,437 rentable square feet for approximately $15 million. During the six months ended June 30, 2008, we sold seven properties, including five properties in the east bay area of the San Francisco Bay market, aggregating approximately 409,000 rentable square feet. The aggregate sales price for the properties sold in the six months ended June 30, 2008 was approximately $84 million.

In August 2008, we announced that Pfizer Inc. entered into a long-term lease for approximately 100,000 square feet, with an option for an additional 50,000 square feet, at 455 Mission Bay Boulevard South, San Francisco, California. Pfizer will locate its Biotherapeutics and Bioinnovation Center at the Alexandria Center for Science and Technology at Mission Bay and joins other prominent life science entities that comprise this world-class life science cluster.

As of June 30, 2008, approximately 89% of our leases (on a rentable square footage basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses, including increases thereto. In addition, as of June 30, 2008, approximately 8% of our leases (on a rentable square footage basis) required the tenants to pay a majority of operating expenses. Additionally, as of June 30, 2008, approximately 92% of our leases (on a rentable square footage basis) provided for the recapture of certain capital expenditures and approximately 94% of our leases (on a rentable square footage basis) contained effective annual rent escalations that were either fixed or indexed based on the consumer price index or another index.

Alexandria Real Estate Equities, Inc., Landlord of Choice to the Life Science Industry(R), is the largest owner and pre-eminent first-in-class international real estate investment trust focused principally on science- driven cluster formation through the ownership, operation, management, redevelopment, selective development and acquisition of properties containing technical environments, including office/laboratory space. Alexandria is the leading provider of high-quality environmentally sustainable real estate, technical infrastructure, services and capital to the broad and diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, product, service, and translational entities, as well as government agencies. Alexandria’s operating platform is based on the principle of “clustering”, with assets and operations located in key life science markets. Our asset base approximates 13.3 million rentable square feet consisting of 160 properties approximating 11.7 million rentable square feet (including spaces undergoing active redevelopment) and properties undergoing ground-up development approximating 1.6 million rentable square feet. In addition, our asset base will enable us to grow to approximately 22.4 million square feet through future ground-up development approximating 9.1 million square feet of office/laboratory space.

This press release contains forward-looking statements, including earnings guidance, within the meaning of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our Annual Report on Form 10-K and our other periodic reports filed with the Securities and Exchange Commission.

Funds from Operations

Generally accepted accounting principles (”GAAP”) basis accounting for real estate assets utilizes historical cost accounting and assumes real estate values diminish over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the Board of Governors of the National Association of Real Estate Investment Trusts (”NAREIT”) established the measurement tool of Funds From Operations (”FFO”). Since its introduction, FFO has become a widely used non-GAAP financial measure among real estate investment trusts (”REITs”). We believe that FFO is helpful to investors as an additional measure of the performance of an equity REIT. We compute FFO in accordance with standards established by the Board of Governors of NAREIT in its April 2002 White Paper (the “White Paper”) and related implementation guidance, which may differ from the methodology for calculating FFO utilized by other equity REITs, and, accordingly, may not be comparable to such other REITs. The White Paper defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

We also present FFO after supplemental adjustments which excludes non-cash impairment and preferred stock redemption charges. FFO after supplemental adjustments differs from FFO established by NAREIT and may not be comparable to that of other REITs. We believe FFO after supplemental adjustments provides a meaningful supplemental financial measure.

Neither FFO nor FFO after supplemental adjustments should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions.

Source: Alexandria Real Estate Equities, Inc.