Extra Space Storage Inc. Reports Operating Results for the Three Months and Year Ended December 31, 2008

Market Wire, February, 2009

Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today operating results for the three months and year ended December 31, 2008. "We continued to see a level of resilience in the fourth quarter with new rental activity similar to 2007 and 2006 levels. Our industry-leading portfolio of properties, complemented by proactive revenue management strategies, operational execution and excellent expense control, enabled us to again deliver positive revenue, NOI and earnings growth. We recently secured $59.1 million in financing and our balance sheet is well positioned at this time," said Kenneth M. Woolley, Chairman and CEO of Extra Space Storage Inc.

Highlights for the Three Months Ended December 31, 2008:

--  Achieved funds from operations ("FFO") of $0.37 per diluted share
    including a $0.09 gain from early extinguishment of debt resulting from the
    Company's repurchase of $40.3 million principal amount of its exchangeable
    senior notes. FFO for the quarter also includes approximately $0.02 of
    development property lease-up dilution and $0.01 in dilution from the
    Company's sale of common stock in a registered direct placement. Excluding
    development dilution, offering dilution and the one-time gain related to
    debt repurchases, FFO was $0.31 per diluted share.

--  Increased revenue and net operating income ("NOI") in our portfolio of
    210 same-stores by 1.4% and 2.5%, respectively, when compared to the three
    months ended December 31, 2007. Excluding tenant reinsurance income, same-
    store revenue and NOI increased by 0.7% and 1.4%, respectively.

--  Acquired eight self-storage properties located in Colorado, Indiana
    and New York for approximately $57.0 million.

--  Completed the development of two self-storage properties located in
    Illinois and Maryland for approximately $16.9 million.

--  Closed the sale of 3.0 million shares of common stock in a registered
    direct placement to certain clients of RREEF America L.L.C. The Company
    received gross proceeds from the offering of approximately $44.1 million.

--  Repurchased approximately $40.3 million principal amount of
    exchangeable senior notes on the open market resulting in a one-time gain
    on early extinguishment of debt of approximately $8.0 million, or $0.09 per
    share.

--  Declared and paid a quarterly dividend of $0.25 per common share.
    

At December 31, 2008, the Company operated or had ownership interests in 694 properties, 279 of which were wholly-owned and consolidated, four of which were held in joint ventures and consolidated, 344 of which were held in joint ventures and accounted for using the equity method, and 67 of which were managed and in which the Company held no ownership interest. This compares to December 31, 2007, at which time the Company operated or had ownership interests in 651 properties, 260 of which were wholly-owned and consolidated, two of which were held in joint ventures and consolidated, 344 of which were held in joint ventures and accounted for using the equity method, and 45 of which were managed and in which the Company held no ownership interest. Results for both periods include equity in earnings of real estate joint ventures, management fees and other income.

FFO Per Share for the Three Months and Year Ended December 31, 2008:

FFO per diluted share for the three months ended December 31, 2008 was $0.37 compared to $0.29 for the three months ended December 31, 2007. FFO per share increased by approximately $0.09 due to a one-time gain from early extinguishment of debt. FFO for the quarter also includes approximately $0.02 in lease-up dilution from recently opened development properties and $0.01 in dilution from the Company's sale of common stock in a registered direct placement of common stock. Excluding the one-time gain related to debt repurchases, development dilution and offering dilution, FFO was $0.31 per diluted share. FFO available to common stockholders was $33.4 million for the three months ended December 31, 2008, as compared to $20.6 million for the three months ended December 31, 2007.

FFO per diluted share for the year ended December 31, 2008 was $1.18 compared to $1.09 for the year ended December 31, 2007. FFO per share increased by approximately $0.10 from a one-time gain due to early extinguishment of debt. At the same time, FFO per share was reduced by approximately $0.02 from unrecovered acquisition costs, $0.06 related to carrying costs associated with the Company's development program and $0.02 due to a loss on the sale of the Company's investments in Auction Rate Securities ("ARS"). FFO per share also includes approximately $0.08 in dilution from the Company's sales of common stock in May 2008 and October 2008. Excluding the one-time gain related to debt repurchases, unrecovered acquisition costs, development dilution, the loss on the sale of ARS and offering dilution, FFO was $1.26 per diluted share. FFO available to common stockholders was $96.6 million for the year ended December 31, 2008, as compared to $76.6 million for the year ended December 31, 2007.