CBL & Associates Properties Completes the Final Phase of Joint Venture with Galileo America Inc.

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE:CBL) announces that it has completed the third and final phase of the joint venture with Galileo America Inc., the U.S. affiliate of Australia-based Galileo America Shopping Trust (ASX: GSA). CBL contributed 90% interest in two power centers, one community center and one community center expansion for total consideration of $58.6 million, including $12.1 million in assumed debt and $42.0 million in cash, net of closing costs.

In accordance with the joint venture agreement completed in October 2003, CBL contributed a total of 51 centers in three phases, of which six have subsequently been sold. Pursuant to a long-term agreement, CBL continues to be a joint venture partner in the contributed centers and the manager for all of Galileo's properties in the United States including six recently acquired from a third party. CBL is entitled to management, leasing, acquisition, disposition and financing fees. The total consideration from all three phases was approximately $562.8 million. The total estimated GAAP gain on sale from all three phases was approximately $99.4 million.

The final phase of the joint venture excluded Charter Oak Marketplace, located in Hartford, CT, as the center was completed ahead of schedule and sold to Galileo in November 2004 for total consideration of $17.9 million.

CBL & Associates Properties, Inc. is the fourth largest mall REIT 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 173 properties, including 69 enclosed regional malls. The properties are located in 28 states and total 73.2 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 1.8 million-square-feet including one regional mall - Imperial Valley Mall in the Imperial Valley region of California, an open-air shopping center in Southaven (Memphis, TN), MS, 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.

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.