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Press Release

UDR, Inc. Reports Tax Status of 2007 Dividends

Company Release - 1/21/2008 2:00 PM ET


UDR, Inc. (NYSE:UDR) reported today the tax status of its 2007 dividends paid to shareholders. The classifications of the dividends are as follows:

           -------------------Portion Designated As-------------------

            Distri-  Ordinary                     Unrecaptured Return
 Payment    bution   Taxable  Qualified Long-Term Section 1250   of
   Date    Per Share Dividend Ordinary    Gain        Gain     Capital

Common Shares:

01/31/2007  $0.31250   15.44%     0.00%    64.39%       20.17%   0.00%
04/30/2007  $0.33000   15.44%     0.00%    64.39%       20.17%   0.00%
07/31/2007  $0.33000   15.44%     0.00%    64.39%       20.17%   0.00%
10/31/2007  $0.33000   15.44%     0.00%    64.39%       20.17%   0.00%
Total       $1.30250

Preferred Shares Series B:

02/28/2007  $0.53750   15.44%     0.00%    64.39%       20.17%   0.00%
05/31/2007  $0.53150   15.44%     0.00%    64.39%       20.17%   0.00%
Total       $1.06900

Preferred Shares Series G:

07/30/2007  $0.28125   15.44%     0.00%    64.39%       20.17%   0.00%
10/31/2007  $0.42188   15.44%     0.00%    64.39%       20.17%   0.00%
Total       $0.70313

Shareholders of record of the Company's common and preferred stock will receive an Internal Revenue Service Form 1099-DIV from Wells Fargo Shareowner Services, the Company's 2007 dividend paying agent. The form will report the dividends paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, and nontaxable dividends. If shares were held in "street name" during 2007, the IRS form will be provided by a bank, brokerage firm, or nominee and the information set forth above may be needed to properly complete the shareholder's federal tax return. Because the Company's tax return has not yet been filed for year ended December 31, 2007, the dividend income tax allocations presented herewith have been calculated using the best available information to date.

The tax treatment of these dividends by state and local authorities varies and may not be the same as the IRS's treatment. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how dividends should be reported on their tax returns. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local income tax consequences of these dividends.

About UDR, Inc.

UDR, Inc. (NYSE:UDR) is a leading multi-family real estate investment trust (REIT) with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2007, UDR owned 68,617 apartment homes and had 6,491 homes under development and another 1,108 homes under contract for development in its pre-sale program. For over 30 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. An S&P 400 company, UDR is the third largest apartment REIT in the nation. Additional information can be found on the Company's website at www.udr.com.

Source: UDR, Inc.

Contact: UDR, Inc. Larry Thede, 720-283-2450 ir@udr.com www.udr.com