"We are more convinced than ever that the combination of PublicStorage and Shurgard is clearly good for all Shurgardshareholders," says Public Storage chief executive Ronald Havner ina prepared statement. "Our proposal would provide Shurgardshareholders with a substantial immediate premium and theopportunity to participate in the long-term growth of the combinedcompany.

"We are disappointed that Shurgard's board continues to refuseto sit down with us to explore the potential of a mutuallybeneficial transaction, despite the overwhelmingly positiveresponse from shareholders and analysts to our proposal. It remainsour preference to work cooperatively with Shurgard to effectuatethis transaction."

The merger would combine the two largest self-storage REITs.Shurgard operates a network of over 630 operating storage centerslocated throughout the US and Europe. Public Storage has interestsin 1,480 storage facilities. In early July, Public Storage offered.80 shares of PSA common stock for each share of Shurgard, whichrepresented a 14% premium over Shurgard's stock price based on theprevious day's close for both companies.

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