CBL & Associates Properties Closes $118 Million in Secured Financings.

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it has closed on a $118 million long-term, non-recourse fixed-rate mortgage loan for Coastal Grand-Myrtle Beach, a 902,000-square-foot regional mall in Myrtle Beach, SC, that is owned through a 50/50 joint venture between CBL and Burroughs & Chapin Company, Inc.

The loan is comprised of a 10-year, $100 million A-Note with an interest rate of 5.09% and two 10-year, $9 million B-Notes with an interest rate of 7.75%. The joint venture partners hold the B-Notes. Proceeds from this loan will be used to retire an $80.7 million construction loan with a variable interest rate of 165 basis points over LIBOR that was to mature on May 29, 2006.

"This transaction is consistent with our strategy of replacing short-term, variable-rate debt with long-term, fixed-rate financing," commented Charles B. Lebovitz, chairman and chief executive officer of CBL & Associates Properties. "The high level of leasing at Coastal Grand-Myrtle Beach and its strong performance since the grand opening in March allowed us to execute this financing on advantageous terms in this favorable interest rate environment."

Burroughs & Chapin Company, Inc., a privately held company based in Myrtle Beach, SC, is a leader in the fields of amusements and attractions, recreation, residential and resort property development, commercial property development, property management and agriculture. The company's service to Myrtle Beach and Horry County dates back to the mid-1890s. Additional information about Burroughs & Chapin Company is available by visiting the company's websites at www.burroughschapin.com and www.myrtlebeachtrips.com or contact Patrick Dowling, Vice President Corporate Communications, at 843-913-7771.

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, ranked by GLA owned. CBL owns, holds interests in or manages 167 properties, including 67 enclosed regional malls. The properties are located in 27 states and total 69.4 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. CBL has nine projects under construction totaling approximately 1.9 million square feet including one regional mall - Imperial Valley Mall in the Imperial Valley region of California, an open-air shopping center in Southaven, MS, one community center and six 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.

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.