EQUITY RESIDENTIAL (EQR)

Supplemental Compensation Disclosure

In order to provide our shareholders with a more complete picture of the compensation of our named executive officers, we are providing additional compensation information not required by the SEC. First, we are furnishing a Supplemental Summary Compensation Table showing Mr. Neithercut’s total compensation for 2007 and 2006 using the grant date fair value of restricted shares, performance shares and options for services performed in 2007 and 2006. Second, we have included in the Grants of Plan-Based Awards table the grants of restricted shares and options made in February 2008 for services performed in 2007. The SEC rules only require the disclosure of such grants made in 2007, which in our case represents grants for services performed in 2006.

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The new SEC disclosure rules require that the Company include in its Summary Compensation Table as 2007 and 2006 compensation the value of restricted shares, share options and performance share units expensed for financial reporting purposes in 2007 and 2006. Equity awards are expensed over the vesting period of the award. In general, the awards expensed in 2007 for our executive officers included portions of grants made in 2005, 2006 and 2007, and the awards expensed in 2006 included portions of grants made in 2004, 2005 and 2006. Accordingly, while the Salary and Non-Equity Incentive Plan Compensation columns of the Summary Compensation Table present payments made for services performed in 2007 and 2006, the restricted shares, performance shares and options presented in the table represent previously earned and disclosed compensation for years prior to 2007 and 2006, respectively. The following table sets forth the supplemental information for Mr. Neithercut.

Supplemental Compensation Disclosure

     In order to provide our shareholders with a more complete picture of the compensation of our named executive officers, we are providing additional compensation information not required by the SEC. First, we are furnishing a Supplemental Summary Compensation Table showing Mr. Neithercut’s total compensation for 2006 and 2005 using the grant date fair value of restricted shares, performance shares and options for services performed in 2006 and 2005. Second, we have included in the Grants of Plan-Based Awards table the grants of restricted shares and options made in February 2007 for services performed in 2006. The SEC rules only require the disclosure of such grants made in 2006, which in our case represents grants for services performed in 2005.

     The new SEC disclosure rules require that the Company include in its Summary Compensation Table as 2006 compensation the value of restricted shares, share options and performance share units expensed for financial reporting purposes in 2006. In general, equity awards are expensed over the vesting period of the award. Therefore, the awards expensed in 2006 for our executive officers include portions of grants made in 2004, 2005 and 2006. Accordingly, while the Salary and Cash Bonus columns of the Summary Compensation Table present payments made for services performed in 2006, the restricted shares, performance shares and options presented in the table represent previously earned and disclosed compensation for years prior to 2006. The following table sets forth the supplemental information for Mr. Neithercut.