BIRMINGHAM, AL (REIT Media) July 2, 2008 - Colonial Properties Trust (NYSE: CLP) announced that it has completed the sale of five wholly-owned apartment communities in two separate transactions for gross proceeds of $81.8 million. The apartment communities, which total 1,250 units, included Cottonwood Crossing, Colonial Village at Bedford and Colonial Village at Bear Creek in Fort Worth, Texas; Colonial Village at Pear Ridge in Dallas, Texas; and Colonial Grand at Shelby Farms I & II in Memphis, Tennessee (the company’s only apartment community in the market).

The average age of the four apartment communities in Texas was 23 years and the average age of Colonial Grand at Shelby Farms I & II was 7 years. The sale of the four apartment communities in Texas represented a market cap rate of 6.5% and the 450-unit Colonial Grand at Shelby Farms sale represented a market cap rate of 5.9%, which included short-term seller financing of $27.8 million, with a maximum term of 90 days. The combined market cap rate for all five assets was of 6.2%.

Weston Andress, President and Chief Financial Officer of Colonial Properties Trust, noted, “These transactions are consistent with our plan to reduce leverage through the sale of primarily older multifamily assets. The pricing demonstrates the value we have created in these properties as well as our ability to execute our plan in a challenging real estate environment. We are pleased with the interest we received on these properties and are cautiously optimistic about the remainder of our sales pipeline that appears to be firming up for the balance of this year.”

The company expects to report a gain on sale of approximately $6.9 million, or $0.12 per diluted share, in net income in the second quarter ended June 30, 2008. Of this gain, the company anticipates recognizing approximately $1.7 million, or $0.03 per diluted share, in funds from operations (FFO) in the second quarter ended June 30, 2008 related to Colonial Grand at Shelby Farms II, a newly completed expansion phase that was developed in the company’s taxable REIT subsidiary.

Colonial Properties Trust is a multifamily real estate investment trust (REIT) that creates additional value for its shareholders by managing commercial assets through joint venture investments and pursuing development opportunities. As of March 31, 2008, the company owned or managed 38,822 apartment units, 16.2 million square feet of office space and 8.1 million square feet of retail shopping space located in key Sunbelt states from Virginia to Nevada. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, please visit the company’s website at www.colonialprop.com.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain other statements in this press release, including statements regarding our expected gain recognition and, our ability to execute our plan to reduce leverage through the sale of primarily older multifamily assets, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied by the forward looking statements.

Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2007, as may be updated or supplemented in the company's Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.

Colonial Properties Trust
Jerry A. Brewer, Executive Vice President, Finance
1-800-645-3917