Saul Centers, Inc. offers a dividend reinvestment plan which enables its shareholders to automatically  invest some of or all dividends in additional shares. The plan provides shareholders with a convenient and cost-free way to increase their investment in Saul Centers. Shares purchased under the dividend  reinvestment plan are issued at a 3% discount from the closing price of the stock on the dividend  payment date. The Plan’s prospectus is available for review in the Shareholders Information section of  the Company’s web site. To receive more information please call the plan administrator at (800) 509-5586 and request to speak  with a service representative or write: Continental Stock Transfer & Trust Company Attention: Saul Centers, Inc. Dividend Reinvestment Plan 17 Battery Place New York, NY 10004 Certain matters discussed within this Annual Report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and as such may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Saul Centers to be different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although Saul Centers believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. These risks are detailed from time to time in the Company’s filings with the Securities and Exchange Commission. DIVIDEND REINVESTMENT PLAN STOCK PRICES Period Share Price High Low  Fourth Quarter, 2002 $24.51 $22.52 Third Quarter, 2002 $25.40 $21.91 Second Quarter, 2002 $25.90 $22.13 First Quarter, 2002 $22.55 $21.02 Fourth Quarter, 2001 $22.00 $18.98 Third Quarter, 2001 $19.87 $18.25 Second Quarter, 2001 $19.30 $18.05 First Quarter, 2001 $19.00 $17.60 On February 21, 2003, the closing price was $23.13. There were approximately 450 holders of record as of that date. 39