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                                  EXHIBIT 99.1

CONTACT: JOSEPH MACNOW
         (201) 587-1000

                                                  Park 80 West, Plaza II
                                                  Saddle Brook, New Jersey 07663

FOR IMMEDIATE RELEASE - June 2, 1998

         SADDLE BROOK, NEW JERSEY.......VORNADO REALTY TRUST (NYSE:VNO) today
announced it has entered into an agreement to acquire the leasehold interest in
888 Seventh Avenue, a 46 story office building containing approximately 847,000
square feet located in midtown Manhattan, and simultaneously has acquired 40
Fulton Street, a 29 story office building containing approximately 234,000
square feet located in downtown Manhattan. The aggregate consideration for both
buildings is approximately $154.5 million.

         The acquisition of 888 Seventh Avenue is expected to be completed not
later than the third quarter of 1999 in conjunction with other unrelated
transactions to be effected by the seller, and is subject to customary closing
conditions.

         Vornado Realty Trust is a fully-integrated equity real estate
investment trust.

         Certain statements contained herein may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, risks associated
with the timing of and costs associated with property improvements, financing
commitments and general competitive factors.


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