CBL & Associates Properties Announces Closing on Acquisition of Laurel Park Place in Livonia, MI.

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it has closed on the acquisition of a 70% joint venture interest in Laurel Park Place in Livonia (Detroit), MI, from Schostak Brothers & Company, effective June 1, 2005. The Company acquired the interest for a total consideration of $82.2 million, including estimated closing costs.

The joint venture holds approximately $50.7 million of non-recourse debt at an interest rate of 8.5%, maturing in 2012. The Company financed the balance of the purchase with $2.6 million of cash and through the issuance of Special Common Units (SCUs) of CBL's Operating Partnership at a value of $28.9 million. The Company issued 285,850 SCUs at a 25% premium to the average closing price of CBL's common stock for the five trading days immediately preceding the effective date of June 1, 2005, or $100.96 per unit. The SCUs will be entitled to receive an initial annual dividend of 6.0% and will be exchangeable on a one-for-one basis for shares of CBL's common stock.

Laurel Park Place is anchored by Parisian, Von Maur and more than 75 specialty stores including Ann Taylor, Chico's, Talbots, California Pizza Kitchen, and Williams-Sonoma. The 505,000 square foot shopping center is located on 31 acres in the western Detroit suburb of Livonia at the intersection of Six Mile Road and Interstate 275. The mall was originally built in 1989 and expanded in 1994. It is currently 85.5% occupied and achieved sales per square foot of $409 per square foot in 2004.

CBL & Associates Properties, Inc. is the fourth largest mall REIT in North America and the largest owner of malls and shopping centers in the Southeast ranked by GLA. Including Laurel Park Place, CBL owns, holds interests in or manages 168 properties, including 71 enclosed regional malls. The properties are located in 29 states and total 74.1 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. CBL currently has eight projects under construction totaling approximately 1.5 million square feet. The projects include two open-air shopping centers located in Ft. Myers, FL, and Memphis (Southaven, MS), TN, one associated center, three community centers and two expansions. In addition to its office in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. Additional information can be found at http://cblproperties.com.