Developers Diversified Announces Tax Allocations of 2005 Dividend Distributions

Market Wire, January, 2006

Developers Diversified Realty Corporation (NYSE: DDR) today announced the tax allocations of the 2005 dividend distributions on its common shares and four series of preferred shares.

For shareholders of Developers Diversified common shares, the Form 1099-DIV summarizes the allocation of 2005 common share dividends. The amounts indicated on Form 1099-DIV should be reported on shareholders' 2005 federal income tax returns. The schedule below, presented on a per share basis, is provided for informational purposes only and should only be used to clarify the Form 1099-DIV.

Shareholders of Developers Diversified common shares should be aware that the 2005 taxable dividend income includes only a portion of the distribution paid on January 6, 2005. The other portion of the distribution was taxable in 2004 and reflected in the 2004 Form 1099-DIV from Developers Diversified.

Please note the entire portion of the January 6, 2006 distribution is not taxable in 2005. The dividend will be included in 2006 taxable income computations.

Common Shares (NYSE: DDR)
Cusip: 251591  103

                                      Total                    Unrecaptured
         Record    Payable  Ordinary Capital Return of   Total    Sec. 1250
Period    Date      Date   Dividends  Gain   Capital(1) Dividends  Gain(2)
------ ----------  -------- -------- -------- --------  --------  --------
4Q04   12/27/2004  1/6/2005 0.263459 0.129521 0.045172  0.438152  0.035872
1Q05    3/21/2005  4/4/2005 0.324700 0.159627 0.055673  0.540000  0.044211
2Q05    6/20/2005  7/5/2005 0.324700 0.159627 0.055673  0.540000  0.044211
3Q05    9/19/2005 10/3/2005 0.324700 0.159627 0.055673  0.540000  0.044211
4Q05   12/23/2005  1/6/2006 0.000000 0.000000 0.000000  0.000000  0.000000
------ ----------  -------- -------- -------- --------  --------  --------
Total                       1.237559 0.608402 0.212191  2.058152  0.168505

(1) Represents a return of stockholders' original investment.
(2) Represents additional characterization of amounts included in
     Total Capital Gain.



Preferred Class F Depository Shares (NYSE:DDR_pf)(1)
Cusip: 251591  871

                                                 Total         Unrecaptured
                    Record    Payable  Ordinary Capital   Total   Sec. 1250
     Period          Date      Date   Dividends  Gain   Dividends  Gain(2)
-----------------  --------  --------- -------- -------- --------  --------
12/15/04-03/14/05  3/1/2005  3/15/2005 0.360348 0.177152 0.537500  0.049065
03/15/05-06/14/05  6/1/2005  6/15/2005 0.360347 0.177153 0.537500  0.049064
06/15/05-09/14/05  9/1/2005  9/15/2005 0.360347 0.177153 0.537500  0.049064
09/15/05-12/14/05 12/1/2005 12/15/2005 0.360348 0.177152 0.537500  0.049065
-----------------  --------  --------- -------- -------- --------  --------
Total                                  1.441390 0.708610 2.150000  0.196258

(1) There is no return of capital.
(2) Represents additional characterization of amounts included in
     Total Capital Gain.



Preferred Class G Depository Shares (NYSE:DDR_pg)(1)
Cusip: 251591  830

                                                 Total         Unrecaptured
                    Record    Payable  Ordinary Capital   Total   Sec. 1250
     Period          Date      Date   Dividends  Gain   Dividends  Gain(2)
-----------------  --------  --------- -------- -------- --------  --------
12/15/04-03/14/05  3/1/2005  3/15/2005 0.335207 0.164793 0.500000  0.045641
03/15/05-06/14/05  6/1/2005  6/15/2005 0.335207 0.164793 0.500000  0.045641
06/15/05-09/14/05  9/1/2005  9/15/2005 0.335207 0.164793 0.500000  0.045641
09/15/05-12/14/05 12/1/2005 12/15/2005 0.335207 0.164793 0.500000  0.045641
-----------------  --------  --------- -------- -------- --------  --------
Total                                  1.340828 0.659172 2.000000  0.182564

(1) There is no return of capital.
(2) Represents additional characterization of amounts included in
 Total Capital Gain.



Preferred Class H Depository Shares (NYSE:DDR_ph)(1)
Cusip: 251591  822

                                                 Total         Unrecaptured
                    Record    Payable  Ordinary Capital   Total   Sec. 1250
     Period          Date      Date   Dividends  Gain   Dividends  Gain(2)
-----------------  --------  --------- -------- -------- --------  --------
01/15/05-04/14/05  4/1/2005  4/15/2005 0.309019 0.151919 0.460938  0.042076
04/15/05-07/14/05  7/1/2005  7/15/2005 0.309019 0.151919 0.460938  0.042076
07/15/05-10/14/05 9/30/2005 10/17/2005 0.309020 0.151918 0.460938  0.042075
10/15/05-01/14/06 12/30/2005 1/17/2006 0.309019 0.151919 0.460938  0.042076
-----------------  --------  --------- -------- -------- --------  --------
Total                                  1.236077 0.607675 1.843752  0.168303

(1) There is no return of capital.
(2) Represents additional characterization of amounts included in
     Total Capital Gain.



Preferred Class I Depository Shares (NYSE:DDR_pi)(1)
Cusip: 251591  780

                                                 Total         Unrecaptured
                    Record    Payable  Ordinary Capital   Total   Sec. 1250
     Period          Date      Date   Dividends  Gain   Dividends  Gain(2)
-----------------  --------  --------- -------- -------- --------  --------
01/15/05-04/14/05  4/1/2005  4/15/2005 0.314257 0.154493 0.468750  0.042789
04/15/05-07/14/05  7/1/2005  7/15/2005 0.314256 0.154494 0.468750  0.042789
07/15/05-10/14/05 9/30/2005 10/17/2005 0.314256 0.154494 0.468750  0.042788
10/15/05-01/14/06 12/30/2005 1/17/2006 0.314257 0.154493 0.468750  0.042789
-----------------  --------  --------- -------- -------- --------  --------
Total                                  1.257026 0.617974 1.875000  0.171155

(1) There is no return of capital.
(2) Represents additional characterization of amounts included in
     Total Capital Gain.