CORRECTING and REPLACING Whitestone REIT First Six Months 2011 Leasing Highlights

HOUSTON--(BUSINESS WIRE)--Second graph, first sentence of release dated July 11, 2011, should refer to 483,933 square feet in new and renewal leases (sted 186,297 square feet in new and renewal leases).

“We are pleased with our progress with the addition of these new tenants, as well as the opportunity to expand our small business tenant lease spaces as they grew with us in the first half of 2011”

The corrected release reads:

WHITESTONE REIT FIRST SIX MONTHS 2011 LEASING HIGHLIGHTS

Small Spaces in Community Centered Strategy Brings Stable Occupancy in a Tough Economy

Whitestone REIT (NYSE-Amex: WSR – “Whitestone”), a real estate investment trust that acquires, owns and operates Community Centered Properties^TM, today reported leasing highlights for the first six months, ended June 30, 2011. The physical occupancy of its Operating Portfolio was 84% as of June 30, 2011. This occupancy level is unchanged from the end of the first quarter at March 31, 2011.

The Company signed 157 leases totaling 483,933 square feet in new and renewal leases during the first half of 2011, primarily with tenants that required less than 3,000 square feet in multi-cultural neighborhoods.

Second Quarter and First Six Months Leasing Highlights

The Citadel – Phoenix: In this luxury boutique Center, as previous disclosed, The BICE Group, an upscale Italian Ristorante with 25 locations world-wide, signed a new 9,910 square foot (“sf”) lease during the second quarter, initiating Whitestone’s redevelopment plan for this Center. BICE is expected to open in October.

Desert Canyon – Phoenix: Whitestone acquired this busy “families on the go” Center in April 2011 and three new tenants signed leases: Schlafani’s Pizza—1,563 sf; Hooked on You, a yarn and crafts retailer—829 sf; and Scottsdale Wealth Management—516 sf. Additionally, the restaurant based at the Center, Twisted Lizard, signed a new 225 sf lease for their new administrative offices.

Spoerlein Commons – Chicago: An upscale suburban Center, Excel Eye Care signed a new 1,747 sf lease; and Live It, Inc., a naturopathic yoga and Pilates studio, signed a new 1,154 sf lease.

Bissonnet – Houston: This multi-cultural urban Center, now 100% leased, features the Safari Restaurant, an African Restaurant tenant at this Center for over a decade, expanded its space by an additional 1,260 sf. New tenant; Apex Food Center signed a 1,500 sf lease.

Corporate Park Northwest – Houston: In this entrepreneurial small business incubator themed business park, nine tenants signed new or expansion leases ranging from 623 to 2,838 sf. totaling 11,371 sf.

Corporate Park Woodland - Houston: In this high-tech and energy services themed corporate services Center, Cole Texas/Brazos Oil & Gas signed a new 2,160 sf lease; Overacre Management, an insurance services firm, signed a new 2,160 sf lease; and Advanced Dealer Solutions, a software provider, signed a new 2,160 sf lease.

Plaza Park Business Center – Houston: In this medical-themed Center featuring an adult day care and two dialysis centers, Resolution Hospice signed a new 2,300 sf lease; and Tradesmen International, a workers trades sourcing agency, signed a 2,300 sf lease.

Torrey Square- Houston: Family Dollar signed a new 8,250 sf lease in this neighborhood lifestyle Center with a mix of mom & pop and national tenants; Kaya Restaurant, a Jamaican Caribbean restaurant, signed a new 3,006 sf lease; and Demetrio Guadarrama signed a new 960 sf lease for a Hispanic clothing store.

Uptown Tower – Dallas: Richardson Koudelka, attorney, signed a new 2,500 sf lease; Affiliated Bank Mortgage signed a new 2,375 sf lease; Universal Protection Service, a security firm, signed a new 2,014 sf lease; PATB, an oil and gas services company, signed a new 2,135 sf lease; and Jasson Waters signed a new 290 sf lease for his mortgage services company in the Uptown Towers Executive Suites.

“We are pleased with our progress with the addition of these new tenants, as well as the opportunity to expand our small business tenant lease spaces as they grew with us in the first half of 2011,” said James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer. “Our smaller space tenants (spaces less than 3,000 square feet) carry a 56% rent premium when compared with the average rent for our larger spaces. We continue to experience robust leasing activity in all of our markets – Houston, Dallas, San Antonio, Chicago and Phoenix. In fact, our four newest acquisitions, in the Phoenix market, are generating substantial interest as a result of active management and strategic repositioning plans for those Centers.”

About Whitestone REIT

Whitestone REIT is a fully integrated real estate company that owns, operates and re-develops Community Centered Properties^TM, which are visibly located properties in established or developing culturally diverse neighborhoods. Whitestone focuses on value-creation in its Centers, as it markets, leases and manages its Centers to match tenants with the shared needs of surrounding neighborhoods. Operations are structured for providing cost-effective service to local service-oriented smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on service offerings such as medical, education, and casual dining. The largest of its 802 tenants comprise less than 3% of its rental revenues. Headquartered in Houston, Texas and founded in 1998, the Company is internally managed with a portfolio of commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com. The investor section of the Company's website has links to SEC filings, news releases, financial reports and investor newsletters.

Forward-Looking Statements

Statements included herein that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, which by their nature, involve known and unknown risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to the Company's regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company's performance.

¹ Operating Portfolio - excludes new acquisitions, through the earlier of (1) attainment of 90% occupancy or 18 months of ownership, and (2) properties which are undergoing significant redevelopment or re-tenanting.