----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM      10-Q**

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**      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934 **

**For      the quarterly period ended September 30, 2006**

**OR      **

**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934 **

**For      the transition period from ________to _________ **

**Commission      file number 333-44467-01**
** **

**ESSEX      PORTFOLIO, L.P.**
** **

| **California**                                                                |   | **77-0369575**                                         |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.                Employer Identification Number) |

**925      East Meadow Drive**

**Palo      Alto, California 94303 **

**(650)      494-3700 **

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**                           **

**                       ESSEX PORTFOLIO, L.P.**

**FORM      10-Q**

**INDEX      **

|                                             |                                                                                                                                                   | **Page                No.** |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
| **PART                I. FINANCIAL INFORMATION** |                                                                                                                                                   |
|                                             |                                                                                                                                                   |                        |
| Item                1.                           | Financial                Statements (Unaudited):                                                                                                       | 3                           |
|                                             |                                                                                                                                                   |                        |
|                                             | Consolidated                Balance Sheets as of September 30, 2006 and December 31, 2005                                                              | 4                           |
|                                             |                                                                                                                                                   |                        |
|                                             | Consolidated                Statements of Operations for the three and nine months ended September                30,                2006 and 2005     | 5                           |
|                                             |                                                                                                                                                   |                        |
|                                             | Consolidated                Statements of Partners’ Capital and Comprehensive Income for the nine                months ended September 30, 2006 | 6                           |
|                                             |                                                                                                                                                   |                        |
|                                             | Condensed                Consolidated Statements of Cash Flows for the nine months ended September                30, 2006 and 2005                    | 7                           |
|                                             |                                                                                                                                                   |                        |
|                                             | Notes                to Consolidated Financial Statements                                                                                              | 8                           |
|                                             |                                                                                                                                                   |                        |
| Item                2.                           | Management's                Discussion and Analysis of Financial Condition and Results of Operations                                                   | 19                          |
|                                             |                                                                                                                                                   |                        |
| Item                3.                           | Quantitative                and Qualitative Disclosures About Market Risk                                                                              | 26                          |
|                                             |                                                                                                                                                   |                        |
| Item                4.                           | Controls                and Procedures                                                                                                                 | 26                          |
|                                             |                                                                                                                                                   |                        |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                                   |
|                                             |                                                                                                                                                   |                        |
| Item                1.                           | Legal                Proceedings                                                                                                                       | 27                          |
|                                             |                                                                                                                                                   |                        |
| Item                1A.                          | Risk                Factors                                                                                                                            | 27                          |
|                                             |                                                                                                                                                   |                        |
| Item                2.                           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                             | 28                          |
|                                             |                                                                                                                                                   |                        |
| Item                6.                           | Exhibits                                                                                                                                               | 28                          |
|                                             |                                                                                                                                                   |                        |
| **Signatures**                                   | 29                                                                                                                                                     |

----

**Part      I -- Financial Information**

**Item      1: Financial Statements (Unaudited)**

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                          |   |   | **September                  30,** |   |   | **December                  31,** |   |
|-------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                          |   |   | **2006**                           |   |   | **2005**                          |   |
| **Assets**                                                                    |   |   |                               |   |   |                              |   |
| Real                  estate:                                                 |   |   |                               |   |   |                              |   |
| Rental                  properties:                                           |   |   |                               |   |   |                              |   |
| Land                  and land improvements                                   |   | $      | 561,582                            |   | $      | 551,132                           |   |
| Buildings                  and improvements                                   |   |   | 2,103,595                          |   |   | 1,932,113                         |   |
|                                                                          |   |   |                               |   |   |                              |   |
|                                                                          |   |   | 2,665,177                          |   |   | 2,483,245                         |   |
| Less                  accumulated depreciation                                |   |   | (457,220)                          |   |   | (398,476)                         |   |
|                                                                          |   |   |                               |   |   |                              |   |
|                                                                          |   |   | 2,207,957                          |   |   | 2,084,769                         |   |
| Real                  estate under development                                |   |   | 101,562                            |   |   | 54,416                            |   |
| Investments                                                                   |   |   | 53,806                             |   |   | 27,228                            |   |
|                                                                          |   |   |                               |   |   |                              |   |
|                                                                          |   |   | 2,363,325                          |   |   | 2,166,413                         |   |
| Cash                  and cash equivalents-unrestricted                       |   |   | 30,142                             |   |   | 14,337                            |   |
| Cash                  and cash equivalents-restricted                         |   |   | 14,999                             |   |   | 13,937                            |   |
| Notes                  and other receivables from related parties             |   |   | 1,841                              |   |   | 1,173                             |   |
| Notes                  and other receivables                                  |   |   | 17,043                             |   |   | 5,237                             |   |
| Prepaid                  expenses and other assets                            |   |   | 18,523                             |   |   | 23,078                            |   |
| Deferred                  charges, net                                        |   |   | 13,617                             |   |   | 15,115                            |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Total                  assets                                                 |   | $      | 2,459,490                          |   | $      | 2,239,290                         |   |
|                                                                          |   |   |                               |   |   |                              |   |
| **Liabilities                  and Partners' Capital**                        |   |   |                               |   |   |                              |   |
| Mortgage                  notes payable                                       |   | $      | 1,097,330                          |   | $      | 1,104,918                         |   |
| Exchangeable                  bonds                                           |   |   | 225,000                            |   |   | 225,000                           |   |
| Lines                  of credit                                              |   |   | 80,000                             |   |   | 25,000                            |   |
| Accounts                  payable and accrued liabilities                     |   |   | 49,414                             |   |   | 32,982                            |   |
| Dividends                  payable                                            |   |   | 24,735                             |   |   | 22,496                            |   |
| Other                  liabilities                                            |   |   | 14,459                             |   |   | 12,520                            |   |
| Deferred                  gain                                                |   |   | 2,193                              |   |   | 2,193                             |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Total                  liabilities                                            |   |   | 1,493,131                          |   |   | 1,425,109                         |   |
| Minority                  interests                                           |   |   | 43,241                             |   |   | 47,522                            |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Redeemable                  convertible limited partnership units             |   |   | 4,750                              |   |   | 4,750                             |   |
| Preferred                  convertible equity (liquidation value of $149,500) |   |   | 145,912                            |   |   | -                                 |   |
| Partners'                  Capital:                                           |   |   |                               |   |   |                              |   |
| General                  partner:                                             |   |   |                               |   |   |                              |   |
| Common                  equity                                                |   |   | 569,784                            |   |   | 555,895                           |   |
| Preferred                  equity (liquidation value of $25,000)              |   |   | 24,412                             |   |   | 24,412                            |   |
|                                                                          |   |   | 594,196                            |   |   | 580,307                           |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Limited                  partners:                                            |   |   |                               |   |   |                              |   |
| Common                  equity                                                |   |   | 53,080                             |   |   | 54,252                            |   |
| Preferred                  equity (liquidation value of $185,000)             |   |   | 126,690                            |   |   | 126,690                           |   |
|                                                                          |   |   | 179,770                            |   |   | 180,942                           |   |
| Accumulated                  other comprehensive income (loss)                |   |   | (1,510)                            |   |   | 660                               |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Total                  partners' capital                                      |   |   | 772,456                            |   |   | 761,909                           |   |
| Commitments                  and contingencies                                |   |   |                               |   |   |                              |   |
|                                                                          |   |   |                               |   |   |                              |   |
| Total                  liabilities and partners' capital                      |   | $      | 2,459,490                          |   | $      | 2,239,290                         |   |
|                                                                          |   |   |                               |   |   |                              |   |

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARES**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended**                                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | **September                  30,**      |   |   | **September                  30,**                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | **2006**                                |   |   | **2005**                                                                                                            |   |   | **2006** |   |   | **2005** |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Rental                  and other property                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 89,670                                  |   | $      | 81,881                                                                                                              |   | $ | 261,589 |   | $ | 239,819 |   |
| Management                  and other fees from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,872                                   |   |   | 1,601                                                                                                               |   |   | 3,526 |   |   | 9,108 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 91,542                                  |   |   | 83,482                                                                                                              |   |   | 265,115 |   |   | 248,927 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Property                  operating, excluding real estate taxes                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 23,307                                  |   |   | 21,254                                                                                                              |   |   | 68,017 |   |   | 62,167 |   |
| Real                  estate taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 7,535                                   |   |   | 7,066                                                                                                               |   |   | 22,305 |   |   | 20,517 |   |
| Depreciation                  and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 20,666                                  |   |   | 20,323                                                                                                              |   |   | 61,432 |   |   | 59,945 |   |
| Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 18,525                                  |   |   | 18,566                                                                                                              |   |   | 57,012 |   |   | 54,866 |   |
| Amortization                  of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 778                                     |   |   | 451                                                                                                                 |   |   | 1,971 |   |   | 1,490 |   |
| General                  and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 5,289                                   |   |   | 4,560                                                                                                               |   |   | 15,190 |   |   | 13,574 |   |
| Other                  expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | -                                       |   |   | 1,400                                                                                                               |   |   | 1,770 |   |   | 2,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 76,100                                  |   |   | 73,620                                                                                                              |   |   | 227,697 |   |   | 215,459 |   |
| Earnings                  from operations                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 15,442                                  |   |   | 9,862                                                                                                               |   |   | 37,418 |   |   | 33,468 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Gain                  on sale of real estate                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | -                                       |   |   | -                                                                                                                   |   |   | - |   |   | 6,391 |   |
| Interest                  and other income                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,701                                   |   |   | 4,978                                                                                                               |   |   | 4,749 |   |   | 7,932 |   |
| Equity                  income (loss) in co-investments                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (368)                                   |   |   | (98)                                                                                                                |   |   | (1,184) |   |   | 17,217 |   |
| Minority                  interests                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (1,383)                                 |   |   | (1,433)                                                                                                             |   |   | (4,228) |   |   | (4,174) |   |
| Income                  before discontinued operations and                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
|                    tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 15,392                                  |   |   | 13,309                                                                                                              |   |   | 36,755 |   |   | 60,834 |   |
| Income                  tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (150)                                   |   |   | (1,185)                                                                                                             |   |   | (325) |   |   | (2,386) |   |
| Income                  before discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 15,242                                  |   |   | 12,124                                                                                                              |   |   | 36,430 |   |   | 58,448 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Income                  from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,170                                   |   |   | 119                                                                                                                 |   |   | 21,491 |   |   | 31,438 |   |
| Net                  income                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 16,412                                  |   |   | 12,243                                                                                                              |   |   | 57,921 |   |   | 89,886 |   |
| Distributions                  to preferred units                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (1,791)                                 |   |   | (488)                                                                                                               |   |   | (2,768) |   |   | (1,465) |   |
| Distributions                  to preferred units - limited partners                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (2,559)                                 |   |   | (2,559)                                                                                                             |   |   | (7,677) |   |   | (7,677) |   |
| Net                  income available to common units                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 12,062                                  |   | $      | 9,196                                                                                                               |   | $ | 47,476 |   | $ | 80,744 |   |
|                                                                                |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Per                  common unit                  data:                                                                                                                  |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Basic:                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Income                  before discontinued operations available to                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| common                  units                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 0.42                                    |   | $      | 0.36                                                                                                                |   | $ | 1.03 |   | $ | 1.94 |   |
| Income                  from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 0.05                                    |   |   |                                   - |   |   | 0.85 |   |   | 1.24 |   |
| Net                  income available to common units                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 0.47                                    |   | $      | 0.36                                                                                                                |   | $ | 1.88 |   | $ | 3.18 |   |
| Weighted                  average number of common units                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| outstanding                  during the period                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 25,424,259                              |   |   | 25,405,930                                                                                                          |   |   | 25,275,460 |   |   | 25,381,534 |   |
|                                                                                               |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Diluted:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Income                  before discontinued operations available to                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| common                  units                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 0.42                                    |   | $      | 0.35                                                                                                                |   | $ | 1.00 |   | $ | 1.93 |   |
| Income                  from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 0.04                                    |   |   |                                   - |   |   | 0.83 |   |   | 1.22 |   |
| Net                  income available to common units                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 0.46                                    |   | $      | 0.35                                                                                                                |   | $ | 1.83 |   | $ | 3.15 |   |
| Weighted                  average number of common units                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| outstanding                  during the period                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 26,143,924                              |   |   | 25,711,320                                                                                                          |   |   | 25,825,186 |   |   | 25,671,923 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |
| Distributions                  per Operating Partnership common unit                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 0.84                                    |   | $      | 0.81                                                                                                                |   | $ | 2.52 |   | $ | 2.43 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                                    |   |   |                                                                                                                |   |   |   |   |   |   |   |

----

**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                   |   | **General                  Partner** |   | **Limited                  Partners** |       |   | **Accumulated**                    |          |   |       |
|------------------------------------------------------------------------|--------|--------------------------------------|--------|---------------------------------------|------------|--------|------------------------------------|---------------|--------|------------|
|                                                                   |   |                                 |   |                                  |       |   |                               | **Preferred** |   |       |   |   |   |   |   | **Preferred** |   |   | **Other** |   |   |   |
|                                                                   |   | **Common                  Equity**   |   |                                  | **Equity** |   | **Common                  Equity** |          |   | **Equity** |   |   | **Comprehensive** |   |   |   |
|                                                                   |   | **Units**                            |   |                                  | **Amount** |   |                               | **Amount**    |   | **Units**  |   |   | **Amount** |   |   | **Amount** |   |   | **Income                  (Loss)** |   |   | **Total** |
| Balances                  at December 31, 2005                         |   | 22,851                               |   | $                                     | 555,895    |   | $                                  | 24,412        |   | 2,437      |   | $ | 54,252 |   | $ | 126,690 |   | $ | 660 |   | $ | 761,909 |
| Comprehensive                  income:                                 |   |                                 |   |                                  |       |   |                               |          |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Net income                               |   | -                                    |   |                                  | 42,543     |   |                               | 2,768         |   | -          |   |   | 4,933 |   |   | 7,677 |   |   | - |   |   | 57,921 |
|                     Change in fair value of cash flow hedges |   | -                                    |   |                                  | -          |   |                               | -             |   | -          |   |   | - |   |   | - |   |   | (2,170) |   |   | (2,170) |
| Comprehensive                  income                                  |   | -                                    |   |                                  | -          |   |                               | -             |   | -          |   |   | - |   |   | - |   |   | - |   |   | 55,751 |
| Issuance                  of common units under                        |   |                                 |   |                                  |       |   |                               |          |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Stock-based compensation plan            |   | 72                                   |   |                                  | 4,198      |   |                               | -             |   | -          |   |   | - |   |   | - |   |   | - |   |   | 4,198 |
|                     Sale of common stock                     |   | 254                                  |   |                                  | 27,225     |   |                               | -             |   | -          |   |   | - |   |   | - |   |   | - |   |   | 27,225 |
| Redemption                  of limited partner                         |   |                                 |   |                                  |       |   |                               |          |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                     common units                             |   | -                                    |   |                                  | -          |   |                               | -             |   | (18)       |   |   | (2,005) |   |   | - |   |   | - |   |   | (2,005) |
| Issuance                  of series Z and Z-1 incentive units          |   | -                                    |   |                                  | -          |   |                               | -             |   | 41         |   |   | 92 |   |   | - |   |   | - |   |   | 92 |
| Reallocation                  of partners' capital                     |   | -                                    |   |                                  | (2,026)    |   |                               | -             |   | -          |   |   | 2,026 |   |   | - |   |   | - |   |   | - |
| Partners'                  distributions                               |   | -                                    |   |                                  | (58,051)   |   |                               | (2,768)       |   | -          |   |   | (6,218) |   |   | (7,677) |   |   | - |   |   | (74,714) |
| Balances                  at September 30, 2006                        |   | 23,177                               |   | $                                     | 569,784    |   | $                                  | 24,412        |   | 2,460      |   | $ | 53,080 |   | $ | 126,690 |   | $ | (1,510) |   | $ | 772,456 |
|                                                                   |   |                                 |   |                                  |       |   |                               |          |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                 |   |                                  |       |   |                               |          |   |       |   |   |   |   |   |   |   |   |   |   |   |   |

----

**ESSEX        PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                                                        |   |   | **Nine                  Months Ended** |
|-------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------|
|                                                                                                        |   |   | **September                  30,**     |
|                                                                                                        |   |   | **2006**                               |   |   | **2005** |
| Net                  cash provided by operating activities                                                  |   | $      | 137,501                                |   | $ | 106,652 |
|                                                                                                        |   |   |                                   |   |   |   |
| Cash                  flows used in investing activities:                                                   |   |   |                                   |   |   |   |
| Additions                  to real estate:                                                                  |   |   |                                   |   |   |   |
| Acquisitions                  and improvements to recent acquisitions                                       |   |   | (161,998)                              |   |   | (30,968) |
| Redevelopment                                                                                               |   |   | (17,753)                               |   |   | (15,384) |
| Revenue                  generating capital expenditures                                                    |   |   | (1,746)                                |   |   | (146) |
| Non-revenue                  generating capital expenditures                                                |   |   | (10,648)                               |   |   | (7,980) |
| Additions                  to real estate under development                                                 |   |   | (52,957)                               |   |   | (22,540) |
| Dispositions                  of real estate and investments                                                |   |   | 15,883                                 |   |   | 6,585 |
| Changes                  in restricted cash and refundable deposits                                         |   |   | 5,162                                  |   |   | 6,228 |
| Additions                  to notes receivable from related parties and other                  receivables  |   |   | (15,279)                               |   |   | (3,278) |
| Repayments                  of notes receivable from related parties and other                  receivables |   |   | 2,295                                  |   |   | 4,925 |
| Net                  (contributions to) distributions from limited partnerships                             |   |   | (25,938)                               |   |   | 43,341 |
| Net                  cash used in investing activities                                                      |   |   | (262,979)                              |   |   | (19,217) |
|                                                                                                        |   |   |                                   |   |   |   |
| Cash                  flows from financing activities:                                                      |   |   |                                   |   |   |   |
| Proceeds                  from mortgage notes payable and lines of credit                                   |   |   | 281,325                                |   |   | 152,971 |
| Repayment                  of mortgage notes payable and lines of credit                                    |   |   | (233,442)                              |   |   | (154,813) |
| Additions                  to deferred charges                                                              |   |   | (472)                                  |   |   | (1,167) |
| Issuance                  of preferred stock - Series G                                                     |   |   | 145,912                                |   |   | - |
| Net                  proceeds from stock options exercised                                                  |   |   | 3,136                                  |   |   | 4,143 |
| Net                  sale of common stock                                                                   |   |   | 27,225                                 |   |   | - |
| Distributions                  to minority interest partners                                                |   |   | (17,482)                               |   |   | (17,353) |
| Redemption                  of minority interest limited partnership units                                  |   |   | (6,360)                                |   |   | (5,463) |
| Distributions                  to general partner                                                           |   |   | (58,559)                               |   |   | (57,032) |
| Net                  cash provided by (used in) financing activities                                        |   |   | 141,283                                |   |   | (78,714) |
|                                                                                                        |   |   |                                   |   |   |   |
| Net                  increase in cash and cash equivalents                                                  |   |   | 15,805                                 |   |   | 8,721 |
| Cash                  and cash equivalents at beginning of period                                           |   |   | 14,337                                 |   |   | 10,644 |
| Cash                  and cash equivalents at end of period                                                 |   | $      | 30,142                                 |   | $ | 19,365 |
|                                                                                                        |   |   |                                   |   |   |   |
| Supplemental                  disclosure of cash flow information:                                          |   |   |                                   |   |   |   |
| Cash                  paid for interest, net of $2,413 and $647 capitalized                                 |   |   |                                   |   |   |   |
| in                  2006 and 2005, respectively                                                             |   | $      | 52,386                                 |   | $ | 54,245 |
|                                                                                                        |   |   |                                   |   |   |   |

----

**ESSEX        PORTFOLIO, L.P. AND SUBSIDIARIES**

**Notes      to Consolidated Financial Statements**

**September      30, 2006 and 2005**

**(Unaudited)**

**(Dollars      in thousands, except for per share and unit amounts)**

**(1)**
**Organization and Basis of Presentation**

***Fund      Activities***

***Variable      Interest Entities***

*Consolidation      of Variable Interest Entities, an Interpretation of ARB No. 51*

----

** **

***Stock-Based      Compensation***

***Accounting      Estimates and Reclassifications***

***New      Accounting Pronouncements***

*Share-Based      Payment”. *
*“Accounting      for Stock-Based Compensation”, *
*“Accounting      for Stock Issued to Employees”. *

----

*“Determining      Whether a General Partner, or the General Partners as a Group, Controls a      Limited Partnership or Similar Entity When the Limited Partners Have Certain      Rights.” *

*Determining      the Variability to Be Considered in Applying FASB Interpretation No. 46      (R).*

*Accounting      for Uncertainty in Income Taxes-an Interpretation of FASB Statement      109.*

**(2)      **
**Significant      Transactions**

***(a)      Acquisitions***

----

***(b)      Dispositions***

***(c)      Equity***

***(d)      The Essex Apartment Value Fund II (“Fund II”)***

**(3)      Investments**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | **September                  30,** |   |   | **December                  31,** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------|
|                                                                                                                       |   |   | **2006**                           |   |   | **2005**                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |                               |   |   |                              |
| Investments                  in joint ventures accounted for under the equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |                               |   |   |                              |
|                      method of accounting:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                               |   |   |                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                               |   |   |                              |
| Limited                  partnership interest of 20.4% and general partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                               |   |   |                              |
| interest                  of 1% in Essex Apartment Value Fund, L.P (Fund I)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 582                                |   | $      | 582                               |
| Limited                  partnership interest of 27.2% and general partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                               |   |   |                              |
| interest                  of 1% in Essex Apartment Value Fund II, L.P (Fund II)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 45,918                             |   |   | 19,340                            |
| Preferred                  limited partnership interests in Mountain Vista                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                               |   |   |                              |
| Apartments                  (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 6,806                              |   |   | 6,806                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 53,306                             |   |   | 26,728                            |
| Investments                  accounted for under the cost method of accounting:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |                               |   |   |                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                               |   |   |                              |
|                      Series A Preferred Stock interest in Multifamily Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |                               |   |   |                              |
|                    Solutions, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 500                                |   |   | 500                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                               |   |   |                              |
| Total                  investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 53,806                             |   | $      | 27,228                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                               |   |   |                              |

| (A)   | The                investment is held in an entity that includes an affiliate of The                Marcus                & Millichap Company (“TMMC”). TMMC’s Chairman is also the Chairman of                the Company. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                 |   |   | **September                  30,**      |   |   | **December                  31,**      |   |   |     |   |   |     |
|----------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|--------|----------|--------|--------|----------|
|                                                                 |   |   | **2006**                                |   |   | **2005**                               |   |   |     |   |   |     |
| Balance                  sheets:                                     |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
|  Real                  estate and real estate under development |   | $      | 545,602                                 |   | $      | 431,655                                |   |   |     |   |   |     |
|  Other                  assets                                  |   |   | 20,699                                  |   |   | 18,655                                 |   |   |     |   |   |     |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Total                  assets                                        |   | $      | 566,301                                 |   | $      | 450,310                                |   |   |     |   |   |     |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Mortgage                  notes payable                              |   | $      | 302,739                                 |   | $      | 268,325                                |   |   |     |   |   |     |
| Other                  liabilities                                   |   |   | 62,437                                  |   |   | 83,979                                 |   |   |     |   |   |     |
| Partners'                  capital                                   |   |   | 201,125                                 |   |   | 98,007                                 |   |   |     |   |   |     |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Total                  liabilities and partners' capital             |   | $      | 566,301                                 |   | $      | 450,311                                |   |   |     |   |   |     |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Company's                  share of capital                          |   | $      | 53,306                                  |   | $      | 26,728                                 |   |   |     |   |   |     |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
|                                                                 |   |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |
|                                                                 |   |   | **September                  30,**      |   |   | **September                  30,**     |
|                                                                 |   |   | **2006**                                |   |   | **2005**                               |   |   | **2006** |   |   | **2005** |
| Statements                  of operations:                           |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Total                  property revenues                             |   | $      | 10,887                                  |   | $      | 6,705                                  |   | $      | 30,631   |   | $      | 20,812   |
| Total                  gain on the sales of real estate              |   |   | -                                       |   |   | 5,889                                  |   |   | -        |   |   | 38,897   |
| Depreciation                  and amortization                       |   |   | (3,122)                                 |   |   | (1,815)                                |   |   | (8,945)  |   |   | (5,056)  |
| Interest                  expense                                    |   |   | (4,169)                                 |   |   | (2,814)                                |   |   | (12,731) |   |   | (7,862)  |
| Other                  operating expenses                            |   |   | (5,074)                                 |   |   | (2,562)                                |   |   | (13,600) |   |   | (8,925)  |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Total                  net (loss) income                             |   | $      | (1,478)                                 |   | $      | 5,403                                  |   | $      | (4,645)  |   | $      | 37,866   |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |
| Operating                  Partnership's share of net (loss) income  |   | $      | (368)                                   |   | $      | (98)                                   |   | $      | (1,184)  |   | $      | 17,217   |
|                                                                 |   |   |                                    |   |   |                                   |   |   |     |   |   |     |

**(4)        Notes Receivable and Other Receivables from **
**Related        Parties**

|                                                                                                  |   |   | **September                  30,**                                                                     |   |   | **December                  31,** |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------|
|                                                                                                  |   |   | **2006**                                                                                               |   |   | **2005**                          |
| Related                  party receivables, unsecured:                                                |   |   |                   |   |   |                              |
|                    Loans to officers made prior to July 31, 2002, secured,                       |   |   |                                            |   |   |                              |
| bearing                  interest at 8%, due beginning April 2007                                     |   | $      | 375                                                                                                    |   | $      | 375                               |
|                    Other related party receivables, substantially due on                  demand |   |   | 1,466                                                                                                  |   |   | 798                               |
| Total                  notes and other receivable from related parties                                |   | $      | 1,841                                                                                                  |   | $      | 1,173                             |
|                                                                                                  |   |   |                                                                                                   |   |   |                              |

----

**(5)      Notes and Other Receivables**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |  **September                    30,** |   |  **December                    31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |  **2006**                             |   |  **2005**                            |   |
|                                                                                                                                                                         |   |                                  |   |                                 |   |
| Note                    receivable, secured, bearing interest at 12%, due June                    2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                          | 2,193  |                                      | $      | 2,193 |   |
| Note                    receivable, secured, bearing interest at LIBOR + 3.69%, due June                    2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                       | 7,311  |                                      |   | - |   |
| Note                    receivable, secured, bearing interest at LIBOR + 4.65%, due November                    2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                       | 6,656  |                                      |   | - |   |
| Other                    receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                       | 883    |                                      |   | 3,044 |   |
| Total                    notes and other receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                          | 17,043 |                                      | $      | 5,237 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                       |   |                                      |   |   |   |

**(6)      Related Party Transactions**

----

**(7)      Segment Information**

|                                                       |   | **Three                  Months Ended** |    |
|------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                       |   | **September                  30,**      |    |
|                                                       |   | **2006**                                |    | **2005** |   |
| Revenues:                                                  |   |                                    |    |   |   |
| Southern                  California                       |   | $                                       | 53,110  |   | $ | 48,996 |   |
| Northern                  California                       |   |                                    | 18,985  |   |   | 16,763 |   |
| Seattle                                                    |   |                                    | 14,381  |   |   | 13,138 |   |
| Other                  non-segment areas                   |   |                                    | 3,194   |   |   | 2,984 |   |
| Total                  property revenues                   |   | $                                       | 89,670  |   | $ | 81,881 |   |
|                                                       |   |                                    |         |   |   |  |   |
| Net                  operating income:                     |   |                                    |         |   |   |  |   |
| Southern                  California                       |   | $                                       | 36,127  |   | $ | 33,176 |   |
| Northern                  California                       |   |                                    | 12,609  |   |   | 11,037 |   |
| Seattle                                                    |   |                                    | 8,853   |   |   | 8,118 |   |
| Other                  non-segment areas                   |   |                                    | 1,239   |   |   | 1,230 |   |
| Total                  net operating income                |   |                                    | 58,828  |   |   | 53,561 |   |
|                                                       |   |                                    |         |   |   |  |   |
| Depreciation                  and amortization:            |   |                                    |         |   |   |  |   |
| Southern                  California                       |   |                                    | (11,457 | ) |   | (10,619 | ) |
| Northern                  California                       |   |                                    | (4,218  | ) |   | (4,023 | ) |
| Seattle                                                    |   |                                    | (3,470  | ) |   | (3,208 | ) |
| Other                  non-segment areas                   |   |                                    | (1,521  | ) |   | (2,473 | ) |
|                                                       |   |                                    | (20,666 | ) |   | (20,323 | ) |
| Interest                  expense:                         |   |                                    |         |   |   |  |   |
| Southern                  California                       |   |                                    | (7,285  | ) |   | (7,543 | ) |
| Northern                  California                       |   |                                    | (4,559  | ) |   | (4,451 | ) |
| Seattle                                                    |   |                                    | (1,749  | ) |   | (1,964 | ) |
| Other                  non-segment areas                   |   |                                    | (4,932  | ) |   | (4,608 | ) |
|                                                       |   |                                    | (18,525 | ) |   | (18,566 | ) |
|                                                       |   |                                    |         |   |   |  |   |
| Amortization                  of deferred financing costs  |   |                                    | (778    | ) |   | (451 | ) |
| General                  and administrative                |   |                                    | (5,289  | ) |   | (4,560 | ) |
| Other                  expenses                            |   |                                    | -       |   |   | (1,400 | ) |
| Management                  and other fees from affiliates |   |                                    | 1,872   |   |   | 1,601 |   |
| Interest                  and other income                 |   |                                    | 1,701   |   |   | 4,978 |   |
| Equity                  income (loss) in co-investments    |   |                                    | (368    | ) |   | (98 | ) |
| Minority                  interests                        |   |                                    | (5,212  | ) |   | (4,918 | ) |
| Income                  tax provision                      |   |                                    | (150    | ) |   | (1,185 | ) |
| Income                  before discontinued operations     |   | $                                       | 11,413  |   | $ | 8,639 |   |

----

|                                                       |   | **Nine                  Months Ended** |    |
|------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                       |   | **September                  30,**     |    |
|                                                       |   | **2006**                               |    | **2005** |   |
| Revenues:                                                  |   |                                   |    |   |   |
| Southern                  California                       |   | $                                      | 155,797 |   | $ | 142,257 |   |
| Northern                  California                       |   |                                   | 54,485  |   |   | 50,056 |   |
| Seattle                                                    |   |                                   | 41,786  |   |   | 38,738 |   |
| Other                  non-segment areas                   |   |                                   | 9,521   |   |   | 8,768 |   |
| Total                  property revenues                   |   | $                                      | 261,589 |   | $ | 239,819 |   |
|                                                       |   |                                   |         |   |   |  |   |
| Net                  operating income:                     |   |                                   |         |   |   |  |   |
| Southern                  California                       |   | $                                      | 105,603 |   | $ | 95,818 |   |
| Northern                  California                       |   |                                   | 36,369  |   |   | 33,578 |   |
| Seattle                                                    |   |                                   | 26,084  |   |   | 24,263 |   |
| Other                  non-segment areas                   |   |                                   | 3,211   |   |   | 3,476 |   |
| Total                  net operating income                |   |                                   | 171,267 |   |   | 157,135 |   |
|                                                       |   |                                   |         |   |   |  |   |
| Depreciation                  and amortization:            |   |                                   |         |   |   |  |   |
| Southern                  California                       |   |                                   | (34,025 | ) |   | (31,115 | ) |
| Northern                  California                       |   |                                   | (12,454 | ) |   | (11,938 | ) |
| Seattle                                                    |   |                                   | (10,139 | ) |   | (9,545 | ) |
| Other                  non-segment areas                   |   |                                   | (4,814  | ) |   | (7,347 | ) |
|                                                       |   |                                   | (61,432 | ) |   | (59,945 | ) |
| Interest                  expense:                         |   |                                   |         |   |   |  |   |
| Southern                  California                       |   |                                   | (21,565 | ) |   | (22,295 | ) |
| Northern                  California                       |   |                                   | (13,754 | ) |   | (12,428 | ) |
| Seattle                                                    |   |                                   | (5,170  | ) |   | (5,302 | ) |
| Other                  non-segment areas                   |   |                                   | (16,523 | ) |   | (14,841 | ) |
|                                                       |   |                                   | (57,012 | ) |   | (54,866 | ) |
|                                                       |   |                                   |    |   |   |  |   |
| Amortization                  of deferred financing costs  |   |                                   | (1,971  | ) |   | (1,490 | ) |
| General                  and administrative                |   |                                   | (15,190 | ) |   | (13,574 | ) |
| Other                  expenses                            |   |                                   | (1,770  | ) |   | (2,900 | ) |
| Management                  and other fees from affiliates |   |                                   | 3,526   |   |   | 9,108 |   |
| Gain                  on sale of real estate               |   |                                   | -       |   |   | 6,391 |   |
| Interest                  and other income                 |   |                                   | 4,749   |   |   | 7,932 |   |
| Equity                  income (loss) in co-investments    |   |                                   | (1,184  | ) |   | 17,217 |   |
| Minority                  interests                        |   |                                   | (14,899 | ) |   | (16,719 | ) |
| Income                  tax provision                      |   |                                   | (325    | ) |   | (2,386 | ) |
| Income                  before discontinued operations     |   | $                                      | 25,759  |   | $ | 45,903 |   |
|                                                       |   |                                   |         |   |   |  |   |

|                                            |   | **September                    30,** |      | **December                    31,** |   |
|-------------------------------------------------|--------|--------------------------------------|-----------|-------------------------------------|--------|
|                                            |   | **2006**                             |      | **2005**                            |   |
| Assets:                                         |   |                                 |      |                                |   |
| Net                    real estate assets:      |   |                                 |      |                                |   |
| Southern                    California          |   | $                                    | 1,235,107 |                                | $      | 1,211,373 |   |
| Northern                    California          |   |                                 | 548,373   |                                |   | 456,093 |   |
| Seattle                                         |   |                                 | 315,763   |                                |   | 315,108 |   |
| Other                    non-segment areas      |   |                                 | 108,714   |                                |   | 102,195 |   |
| Total                    net real estate assets |   |                                 | 2,207,957 |                                |   | 2,084,769 |   |
| Other                    non-segment assets     |   |                                 | 251,533   |                                |   | 154,521 |   |
| Total                    assets                 |   | $                                    | 2,459,490 |                                | $      | 2,239,290 |   |

----

**(8)            Net Income Per Common Unit**

|                                                                                       |        |   |                                      | **Three                    Months Ended** |         |                                      | **Three                    Months Ended** |
|--------------------------------------------------------------------------------------------|--------------------------------------|--------|-------------------------------------------|-------------------------------------------|--------------|-------------------------------------------|-------------------------------------------|
|                                                                                       |                                 |   | **September                    30, 2006** |                                      |         | **September                    30, 2005** |
|                 |                                 |   |                                      |                                      | **Weighted** |                                      |                                      | **Per** |   |   |   |   |   | **Weighted** |   |   | **Per** |
|                                                                                       |                                 |   |                                      |                                      | **Average**  |                                      |                                      | **Common** |   |   |   |   |   | **Average** |   |   | **Common** |
|                                                                                       |                                 |   |                                      |                                      | **Common**   |                                      |                                      | **Unit** |   |   |   |   |   | **Common** |   |   | **Unit** |
|                                                                                       |                                 |   | **Income**                                |                                      | **Units**    |                                      |                                      | **Amount** |   |   | **Income** |   |   | **Unites** |   |   | **Amount** |
| Basic:                                                                                     |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |                 |
| Income                    before discontinued operations available                         |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |
| to                    common units                                                         |                                 | $      | 10,892                                    |                                      | 25,424       |                                      | $                                         | 0.42 |   | $ | 9,077 |   |   | 25,406 |   | $ | 0.36 |
| Income                    from discontinued operations                                     |                                 |   | 1,170                                     |                                      | 25,424       |                                      |                                      | 0.05 |   |   | 119 |   |   | 25,406 |   |   | - |
|                                                                                       |                                 |   | 12,062                                    |                                      |         |                                      | $                                         | 0.47 |   |   | 9,196 |   |   |   |   | $ | 0.36 |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Effect                    of Dilutive Securities (1)                                       |                                 |   | -                                         |                                      | 720          |                                      |                                      |   |   |   | - |   |   | 305 |   |   |   |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                   |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Income                    before discontinued operations available                         |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |
| to                    common units                                                         |                                 |   | 10,892                                    |                                      | 26,144       |                                      | $                                         | 0.42 |   |   | 9,077 |   |   | 25,711 |   | $ | 0.35 |
| Income                    from discontinued operations                                     |                                 |   | 1,170                                     |                                      | 26,144       |                                      |                                      | 0.04 |   |   | 119 |   |   | 25,711 |   |   | - |
|                                                                                       |                                 | $      | 12,062                                    |                                      |         |                                      | $                                         | 0.46 |   | $ | 9,196 |   |   |   |   | $ | 0.35 |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |                                 |   | **Nine                    Months Ended**  |                                      |         | **Nine                    Months Ended**  |
|                                                                                       |                                 |   | **September                    30, 2006** |                                      |         | **September                    30, 2005** |
|                                                                                       |                                 |   |                                      |                                      | **Weighted** |                                      |                                      | **Per** |   |   |   |   |   | **Weighted** |   |   | **Per** |
|                                                                                       |                                 |   |                                      |                                      | **Average**  |                                      |                                      | **Common** |   |   |   |   |   | **Average** |   |   | **Common** |
|                                                                                       |                                 |   |                                      |                                      | **Common**   |                                      |                                      | **Unit** |   |   |   |   |   | **Common** |   |   | **Unit** |
|                                                                                       |                                 |   | **Income**                                |                                      | **Units**    |                                      |                                      | **Amount** |   |   | **Income** |   | **Units** |   |   | **Amount** |
| Basic:                                                                                     |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Income                    before discontinued operations available                         |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| to                    common units                                                         |                                 | $      | 25,985                                    |                                      | 25,275       |                                      | $                                         | 1.03 |   | $ | 49,306 |   |   | 25,382 |   | $ | 1.94 |
| Income                    from discontinued operations                                     |                                 |   | 21,491                               |                                      | 25,275       |                                      |                                      | 0.85 |   |   | 31,438 |   |   | 25,382 |   |   | 1.24 |
|                                                                                       |                                 |   | 47,476                               |                                      |         |                                      | $                                         | 1.88 |   |   | 80,744 |   |   |   |   | $ | 3.18 |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Effect                    of Dilutive Securities (1)                                       |                                 |   | -                                         |                                      | 550          |                                      |                                      |   |   |   | - |   |   | 290 |   |   |   |
|                                                                                       |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                   |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| Income                    before discontinued operations available                         |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   |   |   |   |   |   |   |   |
| to                    common units                                                         |                                 |   | 25,985                                    |                                      | 25,825       |                                      | $                                         | 1.00 |   |   | 49,306 |   |   | 25,672 |   | $ | 1.93 |
| Income                    from discontinued operations                                     |                                 |   | 21,491                                    |                                      | 25,825       |                                      |                                      | 0.83 |   |   | 31,438 |   |   | 25,672 |   |   | 1.22 |
|                                                                                       |                                 | $      | 47,476                                    |                                      |         |                                      | $                                         | 1.83 |   | $ | 80,744 |   |   |   |   | $ | 3.15 |
|                                |                                 |   |                                      |                                      |         |                                      |                                      |   |   |   | . |   |   |   |   |   |   |

| (1)   | On                or after November 1, 2020, the holders of the $225 million exchangeable                notes may exchange, at the then applicable exchange rate, the notes                for                cash and, at Essex’s option, a portion of the notes may be exchanged for                Essex common stock; the current exchange rate is $103.25 per share                of                Essex common stock. The exchangeable notes will also be exchangeable                prior                to November 1, 2020, but only upon the occurrence of certain specified                events. During the three and nine months ended September 30, 2006,                the                weighted average common stock price exceeded the $103.25 strike price                and                therefore common stock issuable upon exchange of the exchangeable                notes                was included in the diluted share count. The treasury method was                used to                determine the shares to be added to the denominator for the calculation                of                earnings per diluted share. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **(9)  ** | **Derivative                Instruments and Hedging                Activities** |
|---------------------|---------------------------------------------------------------------------------|

| **(10)  ** | **Discontinued                Operations** |
|----------------------|--------------------------------------------|

*Accounting      for the Impairment or Disposal of Long-Lived Assets*

----

|                                                                       |   |  **Three                  Months Ended** |   |      |   |  **Nine                  Months Ended** |   |      |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|--------|----------------|--------|----------------------------------------------|--------|----------------|--------|
|                                                                       |   |  **September                  30,**      |   |      |   |  **September                  30,**     |   |      |   |
|                                                                       |   |  **2006**                                |   |  **2005** |   |  **2006**                               |   |  **2005** |   |
|                                                                       |   |                                     |   |      |   |                                    |   |      |   |
| Rental                  revenues                                           |   | $                                             | -      |           | $      | -                                            |   | $              | -      |   | $ | 1,233 |   |
| Interest                  and other                                        |   |                                          | -      |           |   | 119                                          |   |           | 238    |   |   | 1,492 |   |
|                      Revenues                               |   |                                          | -      |           |   | 119                                          |   |           | 238    |   |   | 2,725 |   |
|                                                                       |   |                                          |   |           |   |                                         |   |           |   |   |   |   |   |
| Property                  operating expenses                               |   |                                          | -      |           |   | -                                            |   |           | -      |   |   | (506 | ) |
|                      Operating income from real estate sold |   |                                          | -      |           |   | 119                                          |   |           | 238    |   |   | 2,219 |   |
|                                                                       |   |                                          |   |           |   |                                         |   |           |   |   |   |   |   |
| Gain                  on sale of real estate                               |   |                                          | 1,170  |           |   | -                                            |   |           | 13,032 |   |   | 29,219 |   |
| Promote                  interest and fees                                 |   |                                          | -      |           |   | -                                            |   |           | 8,221  |   |   | - |   |
|                       Net gain on sale of real estate  |   |                                          | 1,170  |           |   | -                                            |   |           | 21,253 |   |   | 29,219 |   |
|                                                                       |   |                                          |   |           |   |                                         |   |           |   |   |   |   |   |
| Income                  from discontinued operations                       |   | $                                             | 1,170  |           | $      | 119                                          |   | $              | 21,491 |   | $ | 31,438 |   |
|                                                                       |   |                                          |   |           |   |                                         |   |           |   |   |   |   |   |

**(11)      Commitments and Contingencies **

----

**Item      2: Management's Discussion and Analysis of Financial Condition and Results      of      Operations**

*The      following discussion should be read in conjunction with our Consolidated      Condensed Financial Statements and accompanying Notes thereto included elsewhere      herein and with our 2005 Annual Report on Form 10-K for the year ended      December 31, 2005 and our Current Report on Form 10-Q for the three and      nine months ended September 30, 2006. (Unless otherwise noted, all dollar      amounts are in thousands.)*

**Southern      California**

**Northern      California**

**Seattle**

**Other      Regions**

|                                 | As                  of September 30, 2006  |   | As                  of September 30, 2005  |   |
|--------------------------------------|--------------------------------------------|--------|--------------------------------------------|--------|
|                                 | Number                  of Apartment Homes | %      | Number                  of Apartment Homes | *%*    |
| Southern                  California | 12,957                                     | 53%    | 12,784                                     | 54%    |
| Northern                  California | 5,318                                      | 22%    | 4,621                                      | 20%    |
| Seattle                              | 4,943                                      | 20%    | 4,956                                      | 21%    |
| Other                  Regions       | 1,177                                      | 5%     | 1,177                                      | 5%     |
| **Total**                            | 24,395                                     | 100%   | 23,538                                     | 100%   |
|                                 |                                       |   |                                       |   |

**Occupancy      Rates**

**Comparison      of the Three Months Ended September 30, 2006 to the Three Months Ended September      30, 2005**

|                                   |   |   | **Three                    months ended** |   |
|----------------------------------------|--------|--------|-------------------------------------------|--------|
|                                   |   |   | **September                    30,**      |   |
|                                   |   |   | **2006**                                  |   | **2005** |   |
| Southern                    California |   |   | 96.6%                                     |   | 96.8% |   |
| Northern                    California |   |   | 97.0%                                     |   | 96.9% |   |
| Seattle                                |   |   | 97.1%                                     |   | 97.1% |   |
| Other                    Regions       |   |   | 94.9%                                     |   | 95.6% |   |

*Total        Property Revenues*

----

|                                                     |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |
|----------------------------------------------------------|--------------------------------|--------|--------|---------------------------------------------|--------|--------|------------|--------|----------------|------------|--------|------------|---------------------------|
|                                                     |                           |   |   | **Three                  Months Ended**     |   |   |       |   |           |       |
|                                                     | **Number                  of** |   |   | **September                  30,**          |   |   | **Dollar** |   | **Percentage** |       |
|                                                     | **Properties**                 |   |   | **2006**                                    |   |   | **2005**   |   |           | **Change** |   | **Change** |                      |
| Revenues:                                                |                           |   |   | **(dollars                  in thousands)** |   |   |       |   |           |       |
| Property                  revenues                       |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |
| Quarterly                  Same-Properties:              |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |
| Southern                  California                     | 56                             |   | $      | 47,383                                      |   | $      | 44,750     |   | $              | 2,633      |   | 5.9        |                    % |
| Northern                  California                     | 19                             |   |   | 17,122                                      |   |   | 15,521     |   |           | 1,601      |   | 10.3       |                      |
| Seattle                                                  | 22                             |   |   | 13,035                                      |   |   | 11,718     |   |           | 1,317      |   | 11.2       |                      |
| Other                  Regions                           | 5                              |   |   | 2,603                                       |   |   | 2,401      |   |           | 202        |   | 8.4        |                      |
| Total                  property revenues                 |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |
| Quarterly                  Same-Properties               | 102                            |   |   | 80,143                                      |   |   | 74,390     |   |           | 5,753      |   | 7.7        |                      |
| Property                  revenues - properties acquired |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |
| subsequent                  to June 30, 2005 (1)         |                           |   |   | 9,527                                       |   |   | 7,491      |   |           | 2,036      |   | 27.2       |                      |
| Total                  property revenues                 |                           |   | $      | 89,670                                      |   | $      | 81,881     |   | $              | 7,789      |   | 9.5        |                    % |
|                                                     |                           |   |   |                                        |   |   |       |   |           |       |   |       |                      |

*Quarterly      Same-Property Revenues*

*Quarterly      Non-Same Property Revenues*

*Total      Expenses*

*Other      expenses *

*Interest      and other income *

*Discontinued      operations*

**Comparison      of the Nine Months Ended September 30, 2006 to the Nine Months Ended September      30, 2005**

----

|                                 |   |   | **Nine                  Months Ended** |   |
|--------------------------------------|--------|--------|----------------------------------------|--------|
|                                 |   |   | **September                  30,**     |   |
|                                 |   |   | **2006**                               |   |   | **2005** |   |
| Southern                  California |   |   | 96.3%                                  |   |   | 96.3% |   |
| Northern                  California |   |   | 97.0%                                  |   |   | 96.9% |   |
| Seattle                              |   |   | 97.2%                                  |   |   | 96.9% |   |
| Other                  Regions       |   |   | 95.7%                                  |   |   | 94.9% |   |

*Total        Property Revenues*

|                                                     |                           |   |                               | **Nine                  Months Ended**      |   |       |    |           |       |   |
|----------------------------------------------------------|--------------------------------|--------|------------------------------------|---------------------------------------------|--------|------------|---------|----------------|------------|--------|
|                                                     | **Number                  of** |   | **September                  30,** |                                        |   | **Dollar** |    | **Percentage** |       |
|                                                     | **Properties**                 |   | **2006**                           |                                        |   | **2005**   |    |           | **Change** |   | **Change** |   |
| Revenues:                                                |                           |   |                               | **(dollars                  in thousands)** |   |       |    |           |       |   |
| Property                  revenues                       |                           |   |                               |                                        |   |       |    |           |       |   |   |   |   |
| Same-Properties:                                         |                           |   |                               |                                        |   |       |    |           |       |   |   |   |   |
| Southern                  California                     | 54                             |   | $                                  | 133,610                                     |   | $          | 126,448 |           | $          | 7,162  |   | 5.7 |                    % |
| Northern                  California                     | 19                             |   |                               | 49,950                                      |   |       | 46,360  |           |       | 3,590  |   | 7.7 |   |
| Seattle                                                  | 21                             |   |                               | 35,999                                      |   |       | 33,215  |           |       | 2,784  |   | 8.4 |   |
| Other                  Regions                           | 5                              |   |                               | 7,625                                       |   |       | 7,139   |           |       | 486    |   | 6.8 |   |
| Total                  property revenues                 |                           |   |                               |                                        |   |       |    |           |       |   |   |   |   |
| Same-Properties                                          | 99                             |   |                               | 227,184                                     |   |       | 213,162 |           |       | 14,022 |   | 6.6 |   |
| Property                  revenues - properties acquired |                           |   |                               |                                        |   |       |    |           |       |   |   |   |   |
| subsequent                  to December 31, 2004 (1)     |                           |   |                               | 34,405                                      |   |       | 26,657  |           |       | 7,748  |   | 29.1 |   |
| Total                  property revenues                 |                           |   | $                                  | 261,589                                     |   | $          | 239,819 |           | $          | 21,770 |   | 9.1 |                    % |
|                                                     |                           |   |                               |                                        |   |       |    |           |       |   |   |   |   |

*Same-Property      Revenues*

*Non-Same      Property Revenues*

*Management      and other fees from affiliates *

*Total      Expenses*

----

*Interest      expense *

*Other      expenses *

*Gain      on sale of real estate *

*Interest      and other income *
* *

*Equity      income in co-investments*

*Discontinued      operations*

**Liquidity      and Capital Resources**

----

*Derivative      Activity*

*Development      and Predevelopment Pipeline*

----

*Redevelopment*

**Alternative      Capital Sources**

**Contractual      Obligations and Commercial Commitments**

|                                                 |   |     |   | **2007                  and** |   | **2009                  and** |   |           |    |      |   |
|------------------------------------------------------|--------|----------|--------|-------------------------------|--------|-------------------------------|--------|----------------|---------|-----------|--------|
| **(In                  thousands)**                  |   | **2006** |   | **2008**                      |   | **2010**                      |   | **Thereafter** |    | **Total** |   |
| Mortgage                  notes payable              |   | $        | -      |                          | $      | 216,741                       |   | $              | 182,152 |      | $      | 698,437 |   | $ | 1,097,330 |   |
| Exchangeable                  bonds                  |   |     | -      |                          |   | -                             |   |           | -       |      |   | 225,000 |   |   | 225,000 |   |
| Lines                  of credit                     |   |     | -      |                          |   | -                             |   |           | 80,000  |      |   | - |   |   | 80,000 |   |
| Interest                  on indebtedness            |   |     | 19,523 |                          |   | 117,199                       |   |           | 68,373  |      |   | 149,881 |   |   | 354,976 |   |
| Development                  commitments             |   |     | 14,100 |                          |   | 175,700                       |   |           | 47,800  |      |   | - |   |   | 237,600 |   |
| Redevelopment                  commitments           |   |     | 9,400  |                          |   | 40,600                        |   |           | -       |      |   | - |   |   | 50,000 |   |
| Essex                  Apartment Value Fund II, L.P. |   |     |        |                          |   |                               |   |           |         |      |   |  |   |   |  |   |
|                     capital commitment     |   |     | -      |                          |   | 27,797                        |   |           | -       |      |   | - |   |   | 27,797 |   |
|                                                 |   | $        | 43,023 |                          | $      | 578,037                       |   | $              | 378,325 |      | $      | 1,073,318 |   | $ | 2,072,703 |   |
|                                                 |   |     |        |                          |   |                               |   |           |         |      |   |  |   |   |  |   |

**Critical        Accounting Policies and Estimates**

----

**Forward      Looking Statements **

**Potential      Factors Affecting Future Operating Results **

*Development      and Redevelopment Activities*

| ·  funds                may be expended and management's time devoted to projects that may                not be                completed;                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  construction                costs of a project may exceed original estimates possibly making                the                project economically unfeasible; |
| ·  projects                may be delayed due to, among other things, adverse weather conditions;                                                                  |
| ·  occupancy                rates and rents at a completed project may be less than anticipated;                and                                                |
| ·  expenses                at a completed development project may be higher than anticipated.                                                                      |

----

*Interest      Rate Fluctuations *

**Item      3: Quantitative and Qualitative Disclosures About Market Risk**

|                                     |   |     |   |            |   |            |   |     |    |            |   |           |   |      |    |                            |   |    |   |
|------------------------------------------|--------|----------|--------|-----------------|--------|-----------------|--------|----------|---------|-----------------|--------|----------------|--------|-----------|---------|---------------------------------|--------|---------|--------|
| **For                  the Years Ended** |   | **2006** |   | **2007****(1)** |   | **2008****(2)** |   | **2009** |    | **2010****(3)** |   | **Thereafter** |   | **Total** |    | **Fair                  value** |   |
|                                     |   |     |   |            |   |            |   |     |    |            |   |           |   |      |    |                            |   |    |   |
| (In                  thousands)          |   |     |   |            |   |            |   |     |    |            |   |           |   |      |    |                            |   |    |   |
| Fixed                  rate debt         |   | $        | -      |            |   | 69,541          |   |     | 147,200 |            |   | 24,764         |   |      | 157,388 |                            |   | 737,002 |   |   | **(4** | **)** | $ | 1,135,895 |   | $ | 1,189,244 |   |
| Average                  interest rate   |   |     | -      |            |   | 6.0             | %      |     | 6.8     | %               |   | 6.9            | %      |      | 8.0     | %                               |   | 5.7     | %      |   |  |   |   |  |   |   |  |   |
| Variable                  rate debt      |   | $        | -      |            |   | -               |   |     | -       |            |   | 80,000         |   |      | -       |                            |   | 186,435 |   |   | **(5** | **)** | $ | 266,435 |   | $ | 266,435 |   |
| Average                  interest        |   |     | -      |            |   | -               |   |     | -       |            |   | 6.3            | %      |      | -       |                            |   | 4.8     | %      |   |  |   |   |  |   |   |  |   |
|                                     |   |     |        |            |   |                 |   |     |         |            |   |                |   |      |         |                            |   |         |   |   |  |   |   |  |   |   |  |   |

**Item      4: Controls and Procedures **

----

**Part      II -- Other Information**

**Item      1: Legal Proceedings**

**Item      IA: Risk Factors**

**Item      2: Unregistered Sale of Equity Securities and Use of      Proceeds**

----

**Item        6: Exhibits **

|   | *A.* | *Exhibits* |
|--------|------|------------|

|                                              3.1  | Articles                Supplementary designating the 4.875% Series G Cumulative Convertible                Preferred Stock, filed as Exhibit 3.1 to the Company’s Form 8-K, filed on                August 1, 2006, and incorporated herein by reference.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               4.1  | Form                of 4.875% Series G Cumulative Convertible Preferred Stock Certificate,                filed as Exhibit 4.1 to the Company’s 8-K, filed on July 27, 2006, and                incorporated herein by reference.  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  10.1   | Twelfth                Amendment to the First Amended and Restated Agreement of Limited                Partnership of Essex Portfolio, L.P., dated as of July 26, 2006,                filed as                Exhibit 10.1 to the Company’s Form 8-K, filed on July 27, 2006, and                incorporated herein by reference. |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2   | Thirteenth                Amendment to First Amended and Restated Agreement of Limited Partnership                of Essex Portfolio, L.P., dated as of October 26,                2006. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | Supplemental                Indenture, dated November 1, 2006, to the Indenture, dated October                28,                2005, by and among Essex Portfolio, L.P., Essex Property Trust, Inc.,                and                Wells Fargo Bank, N.A. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | 12.1 | Ratio                of Earnings to Fixed Charges |
|--------------------------------------------------------------------------------------------------------------------------------------------|------|---------------------------------------------------|

|                         | 31.1 | Certification                of Keith R. Guericke, Chief Executive Officer, pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------------------------------------------------------------------------------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | 31.2 | Certification                of Michael T. Dance, Chief Financial Officer, pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------------------------------------------------------------------------------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | 32.1 | Certification                of Keith R. Guericke, Chief Executive Officer, pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------------------------------------------------------------------------------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | 32.2 | Certification                of Michael T. Dance, Chief Financial Officer, pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------------------------------------------------------------------------------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURE**

|   | ESSEX                PORTFOLIO, L.P.                                                                                                                                                                                                                                                        |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | *(Registrant)*                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                        |
|   | Date:                November 7, 2006                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                             | By:                /S/ MICHAEL T. DANCE |
|   |                             Michael T. Dance                                                                                                                                                                                    |
|   | *             Executive                Vice President, Chief Financial Officer**                            (Authorized Officer, Principal Financial Officer)* |
|   |                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                        |
|   |  By:                /S/ BRYAN HUNT                                                                                                                                                                                                                                                     |
|   |                             Bryan Hunt                                                                                                                                                                                          |
|   | *                            Vice President, Chief Accounting                Officer*                                                                                                                                           |