CBL & Associates Properties and Colonial Properties Trust Announce First Phase of Parkway Place Opens With Parisian.

Business Editors

CHATTANOOGA, Tenn. & BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 14, 2001

CBL & Associates Properties, Inc. (NYSE:CBL) and Colonial Properties Trust (NYSE:CLP) today announced the grand opening of the new Parisian department store at Parkway Place in Huntsville, Alabama. Opening of the 167,000-square-foot, two-level store and the new Piccadilly Cafeteria marks the completion of the first phase of the redevelopment of Parkway Place.

Demolition of the existing small shops and the former Parisian and McRae's stores at Parkway Place has already commenced. A new 180,000-square-foot Dillard's department store and the balance of the two-level mall, which includes 275,000 square feet of specialty stores, are scheduled to open in October 2002. When completed, Parkway Place will be a two-level regional mall with a total of approximately 630,000 square feet.

Parkway Place is situated on the 33-acre site of the former Parkway City Mall at the intersection of U.S. Highway 231 (Memorial Parkway) and Drake Avenue in the southeast section of Huntsville.

Charles B. Lebovitz, CBL's chairman and chief executive, and Tom Lowder, Colonial Properties' chairman, stated, "We are pleased to complete this first phase of the Parkway Place development and provide Parisian with a new state-of-the-art store. We look forward to bringing other dynamic retailers to this exciting project when we celebrate its grand opening in October 2002. Given the continued rapid growth in the Huntsville market and the need for first class shopping in south Huntsville, we believe Parkway Place will be a very successful project."

CBL & Associates Properties of Chattanooga, TN, and Colonial Properties Trust of Birmingham, AL, are equal joint venture partners in the redevelopment project. Under the joint venture agreement between the two shopping center companies, CBL & Associates Properties will handle the development and management functions and Colonial Properties Trust will be responsible for the leasing of Parkway Place.

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. CBL owns regional malls and community shopping centers, primarily in the Southeast and select markets in the Northeast and Midwest. With a total of 51 enclosed malls, the Company has a portfolio of 156 properties in 26 states totaling 55.3 million square feet, including 1.8 million square feet of non-owned shopping centers managed for third parties. The Company has under construction seven new projects totaling approximately 1.5 million square feet, including two malls, two mall expansions, two community center expansions and one office building, which will serve as the Company's new headquarters. In addition to its office in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. The Company can be found on the Internet at www.cblproperties.com.

Headquartered in Birmingham, Ala., Colonial Properties Trust is a diversified Real Estate Investment Trust (REIT) that, through its subsidiaries, owns a portfolio of 117 multifamily, office and retail properties where you live, work and shop in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. Colonial Properties Trust is one of the largest diversified REITs in the United States with a total market capitalization of $2.5 billion. The company operates more than 17,400 apartment units, 3.4 million square feet of office space and 15.3 million square feet of retail shopping space. Additional information on Colonial Properties is available on the Internet at www.colonialprop.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, and the Company's current report on Form 8-K being filed in connections with the transaction described herein, for a discussion of such risks and uncertainties.