Glenborough Realty Trust Calls for Redemption of 7 3/4% Series A Convertible Preferred Stock

Business Wire, Dec 17, 2004

SAN MATEO, Calif. -- Glenborough Realty Trust Incorporated ("Glenborough")

(NYSE:GLB) is calling for the partial redemption of its 7 3/4% Series A Convertible Preferred Stock (CUSIP #37803P204) (the "Preferred Stock"). Glenborough will redeem 3,109,940 shares of Preferred Stock, representing approximately 45.4% of the total number of outstanding shares. The redemption date of the Preferred Stock will be January 28, 2005 (the "Redemption Date") and the redemption price will be $25.5825 per share of Preferred Stock plus $0.1916 per share in accrued and unpaid dividends for the period from December 24, 2004 through and including the Redemption Date, without interest. The dividend payment due on January 14, 2005 of $0.484375 per share on the Preferred Stock will be made in the usual manner to shareholders of record on December 23, 2004.

Shares of Preferred Stock held by record holders on the Redemption Date will be redeemed in cash on a pro rata basis as nearly as practicable (effected on a half-adjusted basis with any fractional share above 0.5 share being rounded up for purposes of calculating the number of shares being redeemed and any fractional share below 0.5 share being rounded down).

Holders who hold shares through a broker should contact their broker with regard to the redemption process because their shares will be redeemed in accordance with the broker's and DTCC's procedures. The Company does not control the broker and DTCC redemption process.

On or before the Redemption Date, the funds necessary for the Redemption will have been set aside by the Company in trust for the benefit of the holders thereof. From the Redemption Date forward, dividends on the redeemed Preferred Stock will no longer accrue, and holders of the redeemed Preferred Stock will have no rights other than the right to receive the redemption price, without interest, upon surrender of the redeemed Preferred Stock. Payment of the redemption price will be made only upon presentation and surrender of certificates representing the redeemed Preferred Stock, by mail, by overnight delivery or by hand to Registrar and Transfer Company, the redemption agent for the Preferred Stock, at the addresses specified in the Notice of Redemption.

The Preferred Stock called for redemption is convertible until the close of business (5:00 p.m. New York time) on the Redemption Date, into shares of the Company's common stock, $0.001 par value (the "Common Stock"), at a conversion price of $32.83 per share (equivalent to a conversion rate of approximately 0.7615 share of Common Stock for each share of Preferred Stock). Cash will be paid in lieu of any fractional shares. To convert any shares of Preferred Stock, the holder of record thereof must surrender the certificates representing said Preferred Stock to Registrar and Transfer Company at the address set forth below accompanied by a written notice of election to convert. Such election to convert must be received by Registrar and Transfer Company prior to the close of business (5:00 p.m. New York time) on the Redemption Date. No payment will be made for dividends accrued and unpaid on the Preferred Stock surrendered for conversion on or prior to December 23, 2004. If conversion of Preferred Stock occurs on or before December 31, 2004 (January 1, 2005 falling on a Saturday), shares of Common Stock issued upon such conversion will be entitled to receive the declared dividend of $0.35 per share of Common Stock payable on January 14, 2005. If conversion of Preferred Stock occurs after January 1, 2005, shares of Common Stock issued upon such conversion will not be entitled to receive such dividend.

A Notice of Redemption, Letter of Transmittal and related materials for each redemption will be mailed on or about December 29, 2004 to holders of record on December 16, 2004. Shares of Preferred Stock held by record holders on the Redemption Date will be redeemed in cash on a pro rata basis as nearly as practicable. Copies of the Notice of Redemption may be obtained from Registrar and Transfer Company, the transfer agent, registrar, redemption agent and conversion agent, by calling Investor Relations, Registrar and Transfer Company at 1-800-368-5948. The address of Registrar and Transfer Company is Registrar and Transfer Company, Attn: Reorg/Exchange Department, 10 Commerce Drive, Cranford, NJ 07016.

Glenborough is a self-administered and self-managed REIT with a portfolio of 63 primarily office properties as of September 30, 2004. The portfolio encompasses approximately 11 million square feet, concentrated in Washington D.C., Southern California, Northern New Jersey, Boston and Northern California.