To Our Shareholders (continued)

Operations Excellence

While leasing is the lifeblood of the company, we pride ourselves on the competence and high level of skill with which we operate our properties. In 2009, Mack-Cali was again recognized as a leader for its operational excellence.

In 2009, Mack-Cali was again recognized as a leader for its operational excellence.

Five of our New Jersey office buildings received The Office Building of the Year (TOBY) award from the New Jersey Chapter of the industry's leading trade organization, the Building Owners and Managers Association (BOMA). They included 222 Mt. Airy Road in Basking Ridge in the under 100,000-square-foot category; 412 Mt. Kemble Avenue in Morris Township in the 250,000-499,999-square-foot category; Harborside Financial Center Plaza One in Jersey City, for which we recently completed a $12 million renovation, in the renovated building category; Mack-Cali Business Campus in Parsippany in the suburban low-rise category; and 23 Main Street in Holmdel in the corporate facility category. In other markets, 40 Richards Avenue, a class A office building in Norwalk, received a TOBY award from the Southern Connecticut Chapter of BOMA.

Four more of Mack-Cali's buildings earned the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy's prestigious ENERGY STAR, the national symbol for superior energy performance. Commercial buildings that earn the ENERGY STAR use an average of 35 percent less energy than typical buildings and release into the atmosphere 35 percent less carbon dioxide. Only commercial buildings and industrial plants in the top 25 percent of facilities in the nation for energy efficiency qualify. Our properties at 106 Allen Road in Liberty Corner Corporate Center, Bernards Township, N.J.; 4 Gatehall Drive at Mack-Cali Business Campus in Parsippany, N.J.; 1 Executive Boulevard at South Westchester Executive Park in Yonkers, N.Y.; and Soundview Plaza, 1266 East Main Street in Stamford, Conn., were recognized in 2009.

This kind of excellence in property management is a defining characteristic that sets us apart in our industry. Indeed, our success in execution on the ground is one of the key drivers of our business.

Capital Sources

In 2009, Mack-Cali demonstrated its ability to access the capital markets to improve its financial position and strengthen its balance sheet. Our ability to continue to attract the support of investors and lenders in a constrained capital markets environment underscores the confidence that the financial community has in Mack-Cali.

Key transactions included offerings of common stock and senior unsecured notes and mortgage financings. In May, Mack-Cali completed a public offering of 11,500,000 shares of common stock resulting in net proceeds to the Company of approximately $275 million. In August, the Company issued $250 million of 10-year senior unsecured notes.

Future Potential

Eventually, the economy will improve. When prospects for more robust revenue growth and opportunities to improve and increase our portfolio return, Mack-Cali will be well positioned to benefit. As a consolidating owner/manager, our size and presence in markets with high barriers to entry, access to capital, strong balance sheet, and large land inventory are assets with tremendous potential for value creation.

We are committed to protecting and enhancing the sponsorship we have created, as a leading office REIT for our investors, a world-class property owner and operator for our tenants, a dependable partner for our business associates, and a fair and concerned employer for our staff. We are grateful for the confidence and trust that our shareholders continue to demonstrate. In these challenging times, we pledge to keep an even hand on the tiller and a watchful eye on the horizon as we plot our course forward.

Sincerely,

Mitchell E. Hersh
President and Chief Executive Officer