CBL & Associates Properties Announces Land Purchased and Initial Site Work Underway at Imperial Valley Mall.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Dec. 17, 2003

CBL & Associates Properties, Inc. (NYSE:CBL) today announced, along with joint venture partner The MGHerring Group, that they have completed the purchase of a 157-acre site for the development of Imperial Valley Mall in El Centro, CA. Initial site work has begun and plans are underway for an official groundbreaking ceremony in January.

"We are excited to begin site work for the Imperial Valley Mall project, CBL's first mall development in California," said Michael Lebovitz, CBL & Associates Properties, Inc. Senior Vice President of Mall Development. "The mall will be the dominant shopping center serving El Centro, Calexico, Brawley, Calipatria, the city of Imperial as well as Mexicali, Mexico. We expect to complete this project by the spring of 2005."

"This site is the perfect location for new retailers to make their first appearance in the Imperial Valley market area," said Buddy Herring, President of The MGHerring Group. "The project has been planned for a number of years and it is exciting to see it come to fruition."

Imperial Valley Mall will be a single-level, 741,000-square-foot enclosed regional mall with four department stores including two making their debut in the market, a 147,000-square-foot Dillard's and a 140,000-square-foot Robinsons-May, as well as an 81,000-square-foot JCPenney, a 130,000-square-foot Sears and a 12-screen UltraStar Theater. In addition, the mall will have approximately 100 well-known national specialty stores and businesses and a 10-unit food court.

Representatives from CBL, The MGHerring Group, local officials, as well as national retailers planning to join the mall, will be at the site on Wednesday, January 14, 2004, at 11:30 am for the mall's official groundbreaking event.

"This is a welcome addition to our community and a boon to our local economy," said Wally Leimgruber, 5th District Supervisor of the Imperial County Commission. "For too long, people from the Imperial Valley and even Yuma have had to travel to San Diego or Palm Springs to shop in a major department store. Now, with this mall coming to our area, we will be able to shop at some of the nation's best stores right here."

"We are extremely pleased to see site work has begun on the mall. It is going to be a vital asset to our community," said Ray Castillo, El Centro Mayor. "This mall will add to our quality of life by providing many jobs and improving the financial picture of our city."

Imperial Valley Mall is being developed at State Route 31 and Chick Road, just south of I-8 in El Centro, CA. El Centro is at the heart of Imperial Valley in California, which is approximately 10 miles north of Mexicali, Mexico, and 120 miles east of San Diego. In addition to the enclosed mall, peripheral property has been earmarked for freestanding businesses including restaurants, hotels and other mall-related operations.

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 & Associates Properties owns or holds interests in 164 properties, including 59 enclosed regional malls. The properties are located in 25 states and total 62.5 million-square-feet including 2.0 million-square-feet of non-owned shopping centers managed for third parties. CBL has seven projects under construction totaling approximately 1.9 million-square-feet including one mall--Coastal Grand-Myrtle Beach, SC, one associated center, two community centers and three 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.

The MGHerring Group of Dallas, TX, has developed 30 major retail projects comprising 24 million-square-feet. The MGHerring Group currently has a joint venture project, Eastern Shore Centre (575,274-square-feet) in Baldwin County, Alabama, on the Eastern Shore of the Mobile Bay under construction.

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.