PS Business Parks, Inc. (NYSE:PSB) announced today the tax treatment of the Company’s 2011 dividends. For the tax year ended December 31, 2011, 100.0% of distributions for the common stock and all the various series of preferred stock for all four quarters were classified as ordinary income. The Company did not declare a capital gain distribution, nor did it have any undistributed long-term capital gain for 2011. The ordinary income dividends do not constitute “qualified dividend income.” This release is based on the preliminary results of work on the Company’s tax filings and is subject to correction or adjustment when the filings are completed. The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company’s distributions. No material change in this classification is expected. Alternative Minimum Tax Alternative minimum tax adjustments are to be apportioned between a real estate investment trust (“REIT”) and its shareholders under Internal Revenue Code Section 59(d). Although regulations have not yet been issued under that provision, based on regulations issued pursuant to a similar provision of prior law and the legislative history of the current provision, it appears that such alternative minimum tax adjustments are to be apportioned to a REIT’s shareholders to the extent that the REIT distributes its regular taxable income. It is the Company’s policy to distribute all of its regular taxable income and accordingly, all of the Company’s alternative minimum tax adjustments are being apportioned to the Company’s shareholders. The Company has determined that -0.4862% of each distribution to its shareholders for the tax year ended December 31, 2011 consists of alternative minimum tax adjustments (i.e., for each $1 of dividend reportable by a shareholder, $0.004862 represents a negative alternative minimum tax adjustment). To determine your share of the Company’s alternative minimum tax adjustments, multiply the aggregate dollar amount of your reportable 2011 dividends from the Company (the amount shown in Box 1a of the Company’s 2011 Form 1099-DIV) by -0.004862.