CBL To Sell Five Shopping Center Properties to Galileo America, LLC.

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE:CBL) today announced that it has exercised its right to sell Wilkes - Barre Township Marketplace in Wilkes - Barre Township, PA and Springdale Center in Mobile, AL, to Galileo America LLC ("Galileo"), for $63.0 million in cash. In addition, CBL announced that it intends to exercise its right to sell Fashion Square in Orange Park, FL, Cobblestone Village at Royal Palm in West Palm Beach, FL, and Chicopee Marketplace in Chicopee, MA, to Galileo. CBL had a one-year right to sell its interest in the five shopping center properties to Galileo for the pre-determined amount of $106.5 million, representing a cap rate of 7.5%. E[acute accent]The transaction is expected to close in May 2006. Proceeds from the sale will be used in a tax advantageous 1031 like-kind exchange for the Layton Hills Mall in Layton, UT, acquired by the Company in November 2005. The completion of the sale will conclude all existing agreements with Galileo. E[acute accent]Commenting on the transaction, Stephen Lebovitz, president of CBL & Associates Properties, Inc. said, "We are pleased to enter into the final phase of our relationship with Galileo, which will allow us to reap significant tax-savings from deploying the proceeds into a 1031 exchange. This transaction firmly illustrates our commitment to maximizing value for our shareholders." E[acute accent]CBL is one of the largest and most experienced owners and developers of malls and shopping centers in the country. CBL owns, holds interests in or manages 132 properties, including 79 regional malls/open-air centers. The properties are located in 27 states and total 74.2 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. CBL currently has nine projects under construction totaling 2.1 million square feet including Phase II of Gulf Coast Town Center in Ft. Myers, FL; two open-air shopping centers; a community center, two associated centers and three expansions. In addition to its two regional offices in Boston (Waltham), MA and Dallas, TX, CBL's corporate office is located in Chattanooga, TN. Additional information can be found at http://cblproperties.com. E[acute accent]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.