CBL & Associates Properties Acquires York Galleria Mall.

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--July 1, 1999--

CBL & Associates Properties, Inc. (NYSE:CBL) today announced it has acquired York Galleria Mall in York, Pennsylvania for a total purchase price of $68.9 million.

CBL funded the acquisition through financing provided by Wells Fargo. York Galleria Mall is expected to generate an initial yield on investment, including provisions for deferred maintenance, of approximately 8.7%. Excluding property management fees and structural reserves, the initial yield is approximately 9.3%.

Located thirty miles south of Harrisburg, the 767,000-square-foot York Galleria Mall is anchored by The Bon Ton, Boscov's, JCPenney and Sears. The mall is currently 93% occupied and achieved average sales of $276 per square foot in 1998. The mall is the dominant retail complex in a trade area which serves over 370,000, including one of the fastest growing metropolitan areas in the state. York Galleria Mall is CBL's second mall acquisition in Pennsylvania. In April 1998, the Company acquired Stroud Mall in Stroudsburg.

Commenting on the announcement, Charles B. Lebovitz, CBL's chairman and chief executive officer, stated, "York Galleria Mall is an attractive opportunity for us to leverage our marketing and leasing efforts from Stroud Mall and initiate value-added strategies such as our marketing agreement with The Coca-Cola Company and our specialty leasing program. We have successfully employed similar value-added strategies in the nine other malls we have acquired in the last two years and expect these programs to increase the cash flow and enhance the franchise value of York Galleria Mall."

CBL & Associates Properties, Inc. is a real estate investment trust which owns regional malls and community shopping centers, primarily in the Southeast and select markets in the Northeast and Midwest. The Company has a portfolio of 139 properties in 25 states totaling 34.2 million square feet, including 1.8 million square feet of non-owned shopping centers managed for third parties. The Company has under construction seven new projects totaling approximately 2.5 million square feet, including Arbor Place mall in metropolitan Atlanta, one associated center, three community centers, one power center and one expansion. In 1998, CBL added 7.5 million square feet of shopping center space to the portfolio, including eight regional malls.

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.