CBL & Associates Properties Acquires Two Malls from Client Advised by Faison & Associates for $202 Million.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--March 15, 2004

CBL & Associates Properties, Inc. (NYSE:CBL) today announced that it has acquired Volusia Mall in Daytona Beach, Florida, and Honey Creek Mall in Terre Haute, Indiana, from entities advised by Faison & Associates, LLC for a total consideration of $202 million.

Volusia Mall was acquired for $64 million in cash, and the assumption of a $55 million non-recourse loan at an interest rate of 6.70%, which matures in 2009. Honey Creek Mall was acquired for $50 million in cash and the assumption of a $33 million non-recourse loan at an interest rate of 6.95%, which matures in 2009. The acquisitions of Volusia Mall and Honey Creek Mall are expected to generate initial yields of 7.64% and 7.94%, respectively, based upon current income.

The 1,064,768-square-foot Volusia Mall is currently 89.4% occupied with average mall shop sales of $368 per square foot in 2003. Located 1.5 miles east of I-95, across the street from the Daytona International Speedway and Daytona International Airport, Volusia Mall is anchored by Burdines, Dillards, JCPenney and Sears. Volusia Mall enjoys a diverse economic base and a permanent trade area population of more than 460,000. The nearest competing mall is over 30 miles away.

Honey Creek Mall is currently 88.4% occupied with average shop sales of $335 in 2003. Anchored by Elder-Beerman, LS Ayres (May Company), JCPenney and Sears, the 680,890-square-foot mall is located at the intersection of I-70 and US Highway 41. Terre Haute is the commercial and healthcare hub for an eight-county area and is home to three colleges and universities, including Indiana State. Honey Creek's nearest regional mall competition is 50 miles away.

Charles B. Lebovitz, chairman and chief executive officer of CBL, said, "We are pleased once again to complete a transaction with the Faison organization. Volusia Mall and Honey Creek Mall share many common attributes with our existing portfolio. They both dominate their respective markets with prominent locations, a solid lineup of department store anchors and strong mall shop sales. The favorable sales and occupancy trends at each mall, attractive remerchandising and specialty income opportunities and potential upside from new and renewal leasing offered compelling reasons for pursuing these acquisitions."

CBL & Associates Properties, Inc. is one of the top five owners of shopping centers in North America and the largest owner of malls and shopping centers in the Southeast. CBL owns or holds interests in and manages 162 properties, including 62 enclosed regional malls. The properties are located in 27 states and total 64.3 million-square-feet including 2.1 million-square-feet of non-owned shopping centers managed for third parties. CBL has eight projects under construction totaling approximately 2.6 million-square-feet including two malls -- Coastal Grand in Myrtle Beach, SC, and Imperial Valley Mall in the Imperial Valley region of CA. The other centers under construction include two community centers and four expansions. In addition to its office in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. Additional information can be found at www.cblproperties.com.

Faison & Associates is a subsidiary of Faison Enterprises, Inc., a comprehensive development and investment management company based in Charlotte, NC, that acquires and develops retail, office, industrial and residential projects in the Southeastern, Mid-Atlantic and Southwestern United States. For more information, visit www.faison.com.

Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.