Charles E. Smith Residential Realty's Engineering Affiliate Acquires New England Mechanical Services, Inc.; Merger Creates New Company With Capabilities to Serve Customers From Mid-Atlantic to New England

ARLINGTON, Va., Nov. 30 /PRNewswire/ -- Charles E. Smith Residential Realty, Inc. (NYSE: SRW) announced today that its affiliate, Consolidated Engineering Services, has acquired New England Mechanical Services, Inc., one of the largest engineering and mechanical contractors in the Northeastern United States. New England Mechanical, based in Vernon, Conn., will retain its name and management personnel and will operate as Consolidated's Northeast regional office. The transaction was priced in the $20 million range and was funded with cash and the delivery of approximately 200,000 shares of SRW common stock. Consolidated's President Philip Rogers said, "Our strategy is to expand Consolidated's market leadership position in the Mid-Atlantic through friendly mergers with high-quality firms in key regions such as the Midwest and Northeast. New England Mechanical has grown its business at a double-digit rate in recent years, and has a strong management team and top-notch reputation. In partnership with Consolidated, the company will be the anchor for the entire region, allowing for further expansion into the Northeast." Consolidated is one of four property service businesses affiliated with Charles E. Smith Residential. It is a broad-based building technology services company with expertise in facilities management, operations and maintenance, engineering consulting services, and mechanical and electrical services and installation. With the acquisition of New England Mechanical, and the recent acquisition of Combustioneer Corp. of Rockville, Md., Consolidated now has seven regional offices, including Chicago and New York. Consolidated's major customers include Bank of America, Fannie Mae, INTELSAT, the General Services Administration, the Department of Defense, and the National Archives and Records Administration. The merger with New England Mechanical will add more than 2,000 customers, including Union Carbide, The Hartford, Bristol-Myers Squibb, General Electric, Pratt & Whitney, Ralston Purina and the U.S. Naval Submarine Base. Charles E. Smith Residential Realty, Inc. is a self-managed real estate investment trust listed on the New York Stock Exchange under the symbol "SRW." The Company and its subsidiaries and affiliates own, acquire, develop, and manage multifamily residential units in Washington, D.C., Northern Va., Chicago, Boston and Southeast Florida. Consolidated Engineering Services, Inc. is 99% owned by an affiliate of the Company. As of November 29, 1999, the Company owns approximately 23,000 units and has approximately 3,000 units under pre-purchase and/or construction. The total market capitalization of the Company -- Charles E. Smith Residential Realty, Inc., including its Operating Partnership -- exceeds $2.3 billion. Investor information, including press releases about Charles E. Smith Residential Realty, is available on the Company's website at http://www.charlesesmith.com and also through PR Newswire News on Call by fax 800-758-5804, ext. 101271, or at http://www.prnewswire.com.