CBL & Associates Properties Closes $407.2 Million in Secured Financings.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 20, 2002

CBL & Associates Properties, Inc. (NYSE:CBL) today announced it closed $407.2 million of non-recourse mortgage loans that will be secured by eight of the Company's regional malls and one associated center. The loans will have a term of 10 years at an interest rate of 6.51%. The financing will be securitized by Credit Suisse First Boston and Key Bank into nine distinct loans that are not cross-defaulted or cross-collateralized.

These transactions will replace floating-rate debt on seven of the properties and refinance a maturing loan that had a fixed interest rate of 6.95%. Excess proceeds of approximately $58 million will be used to reduce outstanding balances on lines of credit. One of the properties was previously unencumbered. The loans are secured by mortgages on Arbor Place and The Landing at Arbor Place in Atlanta, GA; Fashion Square in Saginaw, MI; Jefferson Mall in Louisville, KY; Old Hickory Mall in Jackson, TN; Northwoods Mall in North Charleston, SC; Randolph Mall in Asheboro, NC; Regency Mall in Racine, WI; and WestGate Mall in Spartanburg, SC.

CBL's chairman and chief executive officer, Charles B. Lebovitz commented, "This transaction is consistent with our philosophy of minimizing interest rate risks and converting as much debt as possible to long-term, non-recourse, fixed rates. The excellent execution provided by Credit Suisse First Boston and Key Bank enabled us to take advantage of the current interest rate environment to secure attractive long-term financing."

CBL & Associates Properties, Inc. is the third largest mall real estate investment trust in terms of GLA owned in the United States and the largest owner of malls and shopping centers in the Southeast. With a total of 54 enclosed malls, the Company has a portfolio of 160 properties in 25 states totaling 57.3 million square feet including 2.1 million square feet of non-owned shopping centers managed for third parties. The Company has under construction eight projects totaling approximately 1.4 million square feet, including one mall, one associated center, two community centers, one mall expansion plus three mall renovations. In addition to its office in Chattanooga, TN, the Company has a regional office in Boston (Waltham), MA. The Company can be found on the Internet 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.