First Potomac Realty Trust Acquires Cloverleaf Center in Suburban Washington, DC

- Updates Third Quarter 2009 Capital Activity -
BETHESDA, Md.--(Business Wire)--
First Potomac Realty Trust (NYSE: FPO), a regional leader in the ownership,
management and development of business parks and industrial properties,
announced that it has acquired Cloverleaf Center for $25.5 million. Cloverleaf
Center is a class-A business park located in Germantown, Maryland in Montgomery
County.

The 173,655 square-foot property was built in 2000 and consists of four one- and
two-story office buildings. The multi-tenant property is currently 97% leased
with no material lease expirations scheduled until August 2012. The property has
a strong tenancy of primarily government contractors and technology companies
and benefits from its close proximity to the Department of Energy. This
acquisition further extends First Potomac`s presence in the I-270 Corridor
submarket of Montgomery County.

First Potomac financed the acquisition through a combination of debt and cash on
hand. In connection with the purchase, the Company obtained a $17.5 million
mortgage loan at a rate of 6.75% with a term of five years (plus two one-year
extension options). The property is expected to generate a first-year
unleveraged return of approximately 10.7% on a cash basis and 11.5% on an
accrual basis.

Update on Third Quarter Capital Activity

First Potomac also provided an update regarding the Company`s controlled equity
offering program and Exchangeable Senior Note repurchases. During the three
months ended September 30, 2009, the Company sold 1.63 million common shares
through its controlled equity offering program at a weighted average offering
price of $10.68 per share, generating net proceeds of approximately $17.0
million.

The Company used approximately $8.8 million of the proceeds to fund the equity
portion of the Cloverleaf acquisition. In addition, the Company used
approximately $7.5 million to retire $8.5 million of the outstanding balance on
its Exchangeable Senior Notes, representing a weighted average discount of
approximately 12%. The note repurchases resulted in a gain of $640,000, or $0.02
per diluted share, net of deferred financing costs and original issue discount.

Douglas J. Donatelli, chief executive officer of First Potomac Realty Trust,
stated "The Cloverleaf acquisition demonstrates the depth of our local market
relationships and our ability to source high-quality acquisitions in our core
markets. This transaction is unique in that it was sourced during the extreme
dislocation of the economy in early 2009. The park is strategically
well-positioned in Montgomery County, where we already have a significant
presence, and it complements our existing portfolio in the submarket. I`m
pleased that we were able to complete this transaction while also improving our
financial flexibility through the retirement of debt and the issuance of equity
under our controlled equity offering program, continuing our adherence to a
disciplined investment strategy."

About First Potomac Realty Trust

First Potomac Realty Trust is a self-administered, self-managed real estate
investment trust that focuses on owning, developing, redeveloping and operating
industrial properties and business parks in the Washington, D.C. metropolitan
area and other major markets in Virginia and Maryland. The Company`s portfolio
totals approximately 12 million square feet. The Company's largest tenant is the
U.S. Government, which along with government contractors, accounts for
approximately 20% of the Company`s revenue.

Forward Looking Statements

The forward-looking statements contained in this press release are subject to
various risks and uncertainties. Although the Company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, there can be no assurance that its expectations will be achieved.
Certain factors that could cause actual results to differ materially from the
Company`s expectations include changes in general or regional economic
conditions; the Company`s ability to timely lease or re-lease space at current
or anticipated rents; changes in interest rates; changes in operating costs; the
Company`s ability to complete acquisitions on acceptable terms; and other risks
detailed in the Company`s Annual Report on Form 10-K and described from time to
time in the Company`s filings with the SEC. Many of these factors are beyond the
Company`s ability to control or predict. Forward-looking statements are not
guarantees of performance. For forward-looking statements herein, the Company
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.

First Potomac Realty Trust
Barry H. Bass, 301-986-9200
Chief Financial Officer
bbass@first-potomac.com

Copyright Business Wire 2009