CBL & Associates Properties Completes Second Phase of Faison Mall Acquisition.

Business Editors/Real Estate Writers

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Oct. 1, 2003

CBL & Associates Properties, Inc. (NYSE:CBL) announced today that it has completed the acquisition of two additional regional malls from partnerships managed by Faison Enterprises. The latest two acquisitions are the 784,775-square-foot River Ridge Mall in Lynchburg, Virginia, and the 787,255-square-foot Valley View Mall in Roanoke, Virginia.

The Company previously announced it had completed the acquisition of Cross Creek Mall in Fayetteville, North Carolina, and assumed management of Southpark Mall in Colonial Heights, Virginia, scheduled for acquisition late in the fourth quarter. The total consideration for all four regional malls is $340 million, including cash and the assumption of $170 million of non-recourse fixed-rate debt with an average interest rate of 7.71%. The acquisition of these four regional malls is expected to generate an initial yield of 8.56% based upon current income.

River Ridge Mall is anchored by Belk, Hecht's, JCPenney, Sears and Value City. The single-level regional mall is located on 74 acres at the intersection of US Routes 29 and 460 in Lynchburg. Opened in 1980, the mall was last renovated in 2000. The acquisition of River Ridge Mall includes the assumption of $23 million in fixed rate non-recourse debt along with $39 million in cash.

Situated on 75 acres at the intersection of I-581 and Hershberger Road in Roanoke, Valley View Mall is anchored by Belk, Hecht's, JCPenney and Sears. The two-level regional mall opened in 1985 and was last renovated in 1999. In addition, the mall contains an undeveloped anchor pad that could be used for a fifth anchor or as a lifestyle center location. The acquisition of Valley View Mall includes the assumption of $45 million in fixed rate non-recourse debt along with $41 million in cash.

Commenting on the announcement, Stephen D. Lebovitz, president of CBL said, "The timely completion of these two acquisitions will enable us to implement seasonal and specialty leasing plans for the holidays. River Ridge Mall and Valley View Mall are located in growing middle markets and present upside opportunities in terms of increased occupancy, branding and specialty leasing. Together with Southpark Mall, we now have a new and significant regional mall presence in Virginia that should enable us to achieve efficiencies in leasing, management and marketing."

CBL & Associates Properties, Inc. has 59 enclosed regional malls in its portfolio of 164 properties in 25 states totaling 62.7 million square feet including 2.6 million square feet of non-owned shopping centers managed for third parties. The Company has five projects under construction totaling approximately 1.9 million square feet, including one mall - Coastal Grand - Myrtle Beach, SC, one associated center and three community centers plus five mall renovations. In addition to its office in Chattanooga, TN, the Company has a regional office in Boston (Waltham), MA. Additional information about the Company can be found on its website 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.