CBL & Associates Properties Begins Construction on Freestanding Regal Cinemas.

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--July 16, 1998--CBL & Associates Properties, Inc. (NYSE:CBL) today announced it has begun construction on a 22-screen, 83,000-square-foot freestanding theatre for Regal Cinemas in Jacksonville, Florida. The theatre is scheduled to open during the third quarter of 1999.

The site of the new movie complex is approximately one-quarter of a mile northwest of the intersection of Phillips Highway and Interstate 95 and less than a mile from The Avenues, a 1,172,147-square-foot regional mall which was developed by CBL, in the fastest growing sector of the Jacksonville market.

Regal Cinemas is one of the country's fastest growing theatre chains and the nation's second largest motion picture exhibitor. Regal Cinemas primarily shows first run movies and currently has 2,409 screens in operation at 260 theatres, including 70 in Florida.

Charles B. Lebovitz, CBL's chairman, president and chief executive officer, stated, "We are very pleased to continue our working relationship with Regal Cinemas on this state-of-the-art megaplex theatre. We know the Jacksonville market very well and expect that the stadium seating and many other amenities that Regal provides will be well received."

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 129 properties in 25 states totaling 29.7 million square feet, manages an additional 2.6 million square feet of non-owned shopping centers, and presently has under construction seven new projects totaling approximately 2.2 million square feet, including one mall, one associated center, three community centers and two expansions.

In 1997, the Company opened 10 new shopping centers, expanded four existing shopping centers and acquired three shopping centers, adding 4.6 million square feet to its portfolio. CBL has, in the first half of 1998, acquired five regional malls totaling 4.5 million square feet: Asheville Mall in Asheville, North Carolina; Burnsville Center in Burnsville (Minneapolis), Minnesota; Stroud Mall in Stroudsburg, Pennsylvania; and Rivergate Mall and Hickory Hollow Mall in Nashville, Tennessee.

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.

    CONTACT:  CBL & Associates Properties Inc., Chattanooga
               John N. Foy, 423/855-0001