Press Release August 21, 2006

Morgan Stanley Real Estate to Acquire Glenborough Realty Trust for $1.9 Billion

BOSTON, August 21, 2006 — Morgan Stanley Real Estate announced that it has entered into a definitive agreement to acquire all of the outstanding common stock of Glenborough Realty Trust (NYSE: GLB) in an all-cash merger transaction valued at approximately $1.9 billion. The total consideration includes repayment or assumption of Glenborough's existing debt and redemption of its Series A convertible preferred stock pursuant to its terms. Completion of the merger is expected to occur during the fourth quarter of 2006, subject to approval.

Goodwin Procter partner Gilbert Menna and a team consisting of partners Edward Glazer and John Haggerty and associates Mark Opper, Joseph Urwitz and Heather Zuzenak represented Morgan Stanley in this matter.