PS Business Parks, Inc. Announces Tax Treatment of 2007 Dividends

GLENDALE, Calif.--(Business Wire)--PS Business Parks, Inc. (AMEX:PSB) announced today the tax
treatment of the Company's 2007 dividends. For the tax year ended
December 31, 2007, distributions for the common stock and all the
various series of preferred stock were classified as follows:

-0-
*T
2007
-----------------------------------------------
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
----------- ----------- ----------- -----------
Ordinary Income 89.8324% 100.0000% 100.0000% 100.0000%
Long-Term Capital Gain 10.1676% 0.0000% 0.0000% 0.0000%
----------- ----------- ----------- -----------
Total 100.0000% 100.0000% 100.0000% 100.0000%
=========== =========== =========== ===========
*T

The ordinary income dividends do not constitute "qualified
dividend income."

Alternative Minimum Tax

Alternative minimum tax adjustments are to be apportioned between
a real estate investment trust ("REIT") and its shareholders under
Internal Revenue Code Section 59(d). Although regulations have not yet
been issued under that provision, based on regulations issued pursuant
to a similar provision of prior law and the legislative history of the
current provision, it appears that such alternative minimum tax
adjustments are to be apportioned to a REIT's shareholders to the
extent that the REIT distributes its regular taxable income. It is the
Company's policy to distribute all of its regular taxable income and
accordingly, all of the Company's alternative minimum tax adjustments
are being apportioned to the Company's shareholders.

The Company has determined that -4.9675% of each distribution to
its shareholders for the tax year ended December 31, 2007 consists of
alternative minimum tax adjustments (i.e., for each $1 of dividend
reportable by a shareholder, -4.9675 cents represents an alternative
minimum tax adjustment). To determine your share of the Company's
alternative minimum tax adjustments, multiply the aggregate dollar
amount of your reportable 2007 dividends from the Company (the sum of
the amounts shown in Boxes 1a and 2a of the Company's 2007 Form
1099-DIV) by -4.9675%.

If you are an individual, please refer to Internal Revenue Service
Form 6251, Alternative Minimum Tax-Individuals. Your share of
alternative minimum tax adjustments should be input as a negative
amount in Part I, Line 17 (depreciation on assets placed in service
after 1986). If you are a corporation, please refer to Internal
Revenue Service Form 4626, Alternative Minimum Tax-Corporations. Your
share of alternative minimum tax adjustments should be input as a
negative amount in Line 2, letter "a" (depreciation of post-1986
property).

If you have questions, please consult your tax advisor for further
guidance.

Company Information

PS Business Parks, Inc., a member of the S&P SmallCap 600, is a
self-advised and self-managed equity real estate investment trust
("REIT") that acquires, develops, owns and operates commercial
properties, primarily flex, multi-tenant office and industrial space.
The Company defines "flex" space as buildings that are configured with
a combination of office and warehouse space and can be designed to fit
a number of uses (including office, assembly, showroom, laboratory,
light manufacturing and warehouse space). As of December 31, 2007, PSB
wholly owned approximately 19.6 million rentable square feet with
3,801 customers located in eight states, concentrated in California
(5.8 million sq. ft.), Florida (3.6 million sq. ft.), Virginia (3.0
million sq. ft.), Texas (2.9 million sq. ft.), Maryland (1.8 million
sq. ft.), Oregon (1.3 million sq. ft.), Arizona (0.7 million sq. ft.)
and Washington (0.5 million sq. ft.).

Additional information about PS Business Parks, Inc. is available
on the Internet. The Company's website is www.psbusinessparks.com.

PS Business Parks, Inc.
Edward A. Stokx, (818) 244-8080, Ext. 1649
www.psbusinessparks.com

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