Duke Realty Corporation Announces the Income Tax Characteristics of it

    Business Editors

    INDIANAPOLIS--(BUSINESS WIRE)--Jan. 24, 2005--Duke Realty Corporation (NYSE:DRE) announces the income tax characteristics of its 2004 common and preferred share dividends. For purposes of satisfying U.S. federal income tax withholding obligations under Section 1.1445-8 of the federal income tax regulations with respect to payments to foreign shareholders, Duke Realty Corporation characterizes the unrecaptured Section 1250 gain and long-term capital gain portions of the dividends described below as capital gain dividends.

Common Share Dividends:

Ticker Symbol DRE, CUSIP # 264411505

Total 2004 Taxable Unrecap- Long-Term Non- Distri- Ordinary tured Capital Taxable Payment Date bution Dividend Section Gain Return of Per Share 1250 Distri- Capital Gain bution ---------------------------------------------------------------------- Form 1099-DIV Box Number 1a 2b 2a less 2b 3 ---------------------------------------------------------------------- 2/27/04 .460000 .318690 .023498 .037163 .080649 ---------------------------------------------------------------------- 5/28/04 .460000 .318690 .023498 .037163 .080649 ---------------------------------------------------------------------- 8/31/04 .465000 .322154 .023753 .037568 .081525 ---------------------------------------------------------------------- 11/30/04 .465000 .322154 .023753 .037568 .081525 ---------------------------------------------------------------------- 2004 Totals 1.850000 1.281688 .094502 .149462 .324348 ---------------------------------------------------------------------- Percentage 100.0000% 69.2805% 5.1082% 8.0790% 17.5323% ----------------------------------------------------------------------

Total qualified dividend income included in taxable ordinary dividends above is $.047732 per share (Box 1b, Form 1099-DIV).

Preferred Share Dividends:

Security Ticker CUSIP # Total Taxable Unrecap- Long-Term Symbol 2004 Ordinary tured Capital Distri- Dividend Section Gain bution 1250 Distri- Per Share Gain bution ---------------------------------------------------------------------- Form 1a 2b 2a less 1099-DIV 2b Box Number ---------------------------------------------------------------------- Preferred Not 264411885 $3.995000 3.468262 .204025 .322713 Series B Listed 100.0000% 86.8151% 5.1070% 8.0779% ---------------------------------------------------------------------- Preferred DREPRD 264411877 $.389237 .337916 .019878 .031443 Series D 100.0000% 86.8151% 5.1070% 8.0779% ---------------------------------------------------------------------- Preferred DREPRE 264411844 $.114580 .099473 .005852 .009255 Series E 100.0000% 86.8151% 5.1070% 8.0779% ---------------------------------------------------------------------- Preferred DREPRI 264411810 $2.112520 1.833986 .107886 .170648 Series I 100.0000% 86.8151% 5.1070% 8.0779% ---------------------------------------------------------------------- Preferred DREPRJ 264411778 $1.656240 1.437866 .084584 .133790 Series J 100.0000% 86.8151% 5.1070% 8.0779% ---------------------------------------------------------------------- Preferred DREPRK 264411760 $1.300000 1.128596 .066391 .105013 Series K 100.0000% 86.8151% 5.1070% 8.0779% ----------------------------------------------------------------------

Total qualified dividend income included in taxable ordinary dividends above is $.103076, $.010043, $.002956, $.054506, $.042733, and $.033542 for the Preferred Series B, D, E, I, J, and K shares respectively.

    For corporate shareholders, the Section 291(a) preference item is 1.0227% of total dividend distributions. The company did not incur any foreign taxes in 2004. Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of Duke Realty Corporation dividends.
    Duke Realty Corporation is the largest publicly traded office and industrial real estate company in the United States. Offering a complete range of real estate products and services, Duke produces more than $800 million in annual revenue from over 4,200 tenants and focuses on building dominant market positions in each of its 13 geographic platforms across the Midwest and the Southeast. Duke owns interests in nearly 114 million square feet of properties, has over 1,000 employees and owns or controls approximately 4,600 acres of undeveloped land that can support more than 69 million square feet of future development. Visit Duke on the web at www.dukerealty.com.

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CONTACT: For Duke Realty Corporation Thomas K. Peck, 317-808-6168 (Investor Inquiries) Tracy D. Swearingen, 317-808-6133 (Tax Related Inquiries)

KEYWORD: INDIANA INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION DIVIDEND SOURCE: Duke Realty Corporation

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