Shurgard Announces Redemption of Preferred Stock

As previously announced in its current report on Form
8-K dated July 23, 2006, Shurgard Storage Centers, Inc. (NYSE:SHU), a
leading self-storage real estate investment trust in the United States
and Europe, in accordance with that certain Agreement and Plan of
Merger, dated as of March 6, 2006, by and among Shurgard, Public
Storage, Inc. and a subsidiary of Public Storage, Shurgard issued
notice on July 23, 2006, that it will redeem all outstanding shares of
its 8.7% Series C Cumulative Redeemable Preferred Stock, par value
$0.001 per share, and all outstanding shares of its 8.75% Series D
Cumulative Redeemable Preferred Stock, par value $0.001 per share, on
August 22, 2006, provided that certain conditions in the merger
agreement have been satisfied by that date.

   Forward-Looking Statements

   This press release contains statements that are not based on
historical fact and are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements in this release concerning the beliefs, expectations,
intentions, future events, future performance, business prospects and
business strategy in the United States and Europe, including
statements regarding projections for 2006 and beyond, are based on
several assumptions. If any of these assumptions are not satisfied or
prove to be incorrect, actual results could differ materially from
those indicated in the forward-looking statements, depending on a
variety of factors, including, but not limited to, the consummation of
the proposed merger of Shurgard with and into a subsidiary of Public
Storage, Inc., Shurgard's ability to implement its business strategy,
competition in the market, as well as other risk factors.
   For a discussion of additional risks and other factors that could
affect these forward-looking statements and Shurgard's financial
performance, see Shurgard's report on Form 10-K for the year ended
December 31, 2005, filed with the SEC on March 20, 2006, and
Shurgard's report on Form 10-Q for the quarter ended March 31, 2006,
filed with the SEC on May 10, 2006, and Form 10-Q for the quarter
ended June 30, 2006, filed with the SEC on August 9, 2006.
Forward-looking statements are based on estimates as of the date of
this release. Except as required by law, we disclaim any obligation to
publicly update these forward-looking statements reflecting new
estimates, events or circumstances after the date of this release.