Future IKEA Somerville Advances as Developer Begins Demolition on Site of Swedish Retailer's 2nd Boston-Area Store

Market Wire, September, 2008

With company representatives, local officials and community leaders on-hand, IKEA, the world's leading home furnishings retailer, joined Assembly Square Mall owner Federal Realty Investment Trust (NYSE: FRT) as the developer initiated demolition at the site of the future IKEA Somerville store. Demolition of buildings within the Assembly Square area will allow for construction of Federal Realty's 145-acre planned 'Assembly on the Mystic' development, including the IKEA Somerville store. Until IKEA Somerville opens in 2011 as the 2nd IKEA store in the Boston area and 38th in the United States, customers can shop at IKEA Stoughton or www.IKEA-USA.com .

The 340,000-square-foot future IKEA Somerville, with 1,350 parking spaces comprising two levels of parking below the store, will be built on 12 acres previously occupied by buildings within Assembly Square, southeast of the Assembly Square Mall, east of Assembly Square Drive and the MBTA's Orange Line. Federal Realty and IKEA also will be contributing towards the creation of a T-station along the Orange Line. IKEA Somerville will reflect the unique architectural design for which IKEA stores are known worldwide, and will employ approximately 500 coworkers.

"Today's demolition event is the result of collaboration and hard work by Mayor Curtatone, Federal Realty and key interest groups in Somerville who have worked towards the common goal of opening IKEA Somerville as part of a vibrant, transit-oriented mixed-use development," said Doug Greenholz, U.S. real estate manager for IKEA. "We now look forward to closing on the purchase of the land next year and then beginning construction so we can open IKEA Somerville in 2011, and grow our Boston-area presence that began two years ago with the opening of IKEA Stoughton."

The future IKEA Somerville will present nearly 10,000 exclusively designed items, three model home interiors, approximately 50 room settings, a supervised children's play area, a 300-seat restaurant serving Swedish specialties such as meatballs with lingonberries and salmon plates, as well as American dishes. Other family-friendly features will include a 'Children's IKEA' area in the showroom, baby care rooms, preferred parking and play areas throughout the store.

When the store opens in 2011, IKEA Somerville will welcome 500 new coworkers into the IKEA family. Candidates interested in working at this employer of choice should look for all positions online at www.IKEA-USA.com , where they can apply for diverse positions available in home furnishings sales, interior decoration, customer service, safety and security, cashiers, maintenance, goods flow, receiving, warehouse and stock replenishment. Also, setting itself apart from other retailers, IKEA offers food service opportunities in its Restaurant, Swedish Foodmarket, Café Bistro and coworker cafeteria. IKEA has been ranked in FORTUNE's annual "100 Best Companies to Work For" list (three years in a row), Working Mother magazine's annual list of "100 Best Companies for Working Mothers" (four years in a row) and Training magazine's annual "Top 125" ranking of companies that excel at human capital development (five years in a row). IKEA will create 500 construction jobs and generate significant tax revenue for local governments and schools.

There currently are more than 280 IKEA stores in 36 countries, including 35 in the United States, where other new stores are being planned in: Centennial, CO; Charlotte, NC; and Tampa, FL. Since its 1943 founding in Sweden, IKEA has offered a wide range of home furnishings of good design and function, at low prices so the majority of the people can afford them. As part of this commitment to create a better everyday life for the many people, IKEA incorporates environmentally and socially responsible efforts into day-to-day business, strives to be an employer of choice, and continually supports initiatives that benefit causes such as children and the environment. For information about IKEA and about working at IKEA, please go to www.IKEA-USA.com .