CBL Acquires Premiere Mall in Little Rock; Park Plaza Mall Becomes First CBL Mall in Arkansas.

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE:CBL) today announced the acquisition of Park Plaza Mall in Little Rock, AR, from First Union Real Estate Equity and Mortgage Investments (NYSE:FUR). The mall was acquired for a purchase price of $77.5 million, plus an estimated $9.9 million for improvements, resulting in a total investment of $87.4 million. Park Plaza Mall is expected to generate an initial yield of 8.47% based on current income and the additional investment required.

At closing, CBL assumed a $41.3 million non-recourse, fixed-rate loan at an interest rate of 8.69%, maturing in 2010. The balance of $46.1 million will be funded with cash.

The 547,000-square-foot Park Plaza Mall is currently 82.0% occupied, with average mall shop sales of $406 per square foot in 2003. Park Plaza Mall is strategically located in an established residential and commercial area. With a metropolitan area population of over 420,000, Little Rock is home to the state capital and to 12 colleges and universities, including the University of Arkansas for Medical Sciences and the UALR School of Law.

"We are pleased to announce the addition of Park Plaza Mall, our first regional mall in the state of Arkansas, to our growing portfolio of regional malls," said Stephen Lebovitz, President of CBL & Associates Properties, Inc. "Park Plaza Mall is the premiere mall in Little Rock, as evidenced by its sales productivity and upscale retail mix including Talbot's, Coldwater Creek and Ann Taylor that enhances the mall's 'boutique' atmosphere. We will continue to strengthen the mall's already successful retailer lineup by raising the occupancy levels and investing in capital improvements."

Originally built in 1959, Park Plaza Mall underwent a redevelopment in 1988 that transformed the open-air center into an enclosed regional mall. The three-level mall is located on 22.5 acres at the intersection of two major thoroughfares, Markham Street and University Avenue, less than one half mile from I-630. Headquartered in Little Rock, Dillard's anchors Park Plaza Mall with two flagship department stores including a 198,000-square-foot store on the west and an 86,300-square-foot location on the east side of the center.

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 164 properties, including 66 enclosed regional malls. The properties are located in 27 states and total 67.6 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 1.9 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 four 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.