Joint News Release Public Storage Properties XV, Inc. Public Storage, Inc. 701 Western Avenue P.O. Box 25050 Glendale, CA 91221-5050 ----------------------------------------------------------------- For Release: Immediately Date: December 5, 1996 Contact: Mr. Harvey Lenkin (818) 244-8080 GLENDALE, California--Public Storage Properties XV, Inc. (AMEX:PSQ) and Public Storage, Inc. (NYSE:PSA) announced today that the corporations had agreed, subject to certain conditions, to merge. In the merger, PSQ would be merged with and into PSA, and each outstanding share of PSQ's Common Stock Series A would be converted, at the election of the shareholders of PSQ, into either shares of PSA Common Stock or, with respect to up to 20% of the PSQ Common Stock, $21.99 in cash. This dollar amount has been based on PSQ's estimated net asset value (the appraised value of PSQ's real estate assets as of October 31, 1996 and the estimated book value of PSQ's other net assets as of March 1997). The number of shares of PSA Common Stock will be based on dividing this same dollar amount by the average of the per-share closing prices on the New York Stock Exchange for a specified period prior to PSQ's shareholders' meeting. In the event of the merger, additional distributions would be made to shareholders of PSQ to cause PSQ's estimated net asset value as of the effective date of the merger to be substantially equivalent to its estimated net asset value as of March 1997. If additional distributions are required in order to satisfy PSQ's real estate investment trust distribution requirements, the number of shares of PSA's Common Stock issued in the merger and the amount receivable upon a cash election would be reduced on a pro rata basis in an aggregate amount equal to such distributions. The merger is conditioned on, among other requirements, approval by PSA's board of directors, receipt of a satisfactory fairness opinion by PSQ and approval by the shareholders of PSQ. It is expected that any merger would close during the first half of 1997. ###