Caruso Affiliated Wins Final Victory in Glendale as General Growth Concedes -- Americana at Brand Construction Speeds Forward.

LOS ANGELES -- Caruso Affiliated is preparing for the demolition of the last remaining structures on the site of its Americana at Brand mixed-use development in Glendale as General Growth Properties (NYSE:GGP) has conceded and dropped its suit against the project.

"General Growth lost at trial and lost at appeal and now has dismissed its suit. It was clear to us from the beginning that this suit had no merit and would not stand," said Rick J. Caruso, founder and CEO, Caruso Affiliated. "We have been steadfast and determined in our fight against General Growth as it has attempted to stop fair competition."

In November, the California Court of Appeals ruled against General Growth Properties in its latest attempt to halt real estate owner and developer Rick Caruso's Americana at Brand mixed-use project in Glendale. After defeat in Los Angeles Superior Court General Growth appealed the decision and challenged the project's financial agreements. The court of appeals affirmed the trial court's decision in all respects and awarded costs to the City of Glendale, Glendale Redevelopment Agency and Caruso Affiliated. Earlier this year the same court reinstated Caruso's $40 million antitrust and anticompetitive lawsuit against General Growth Properties.

"With the dismissal of the suit, we will move quickly forward with the demolition of the remaining structures and site grading in order to set the stage for full project construction early next year," added Rick Moses, senior vice president, Caruso Affiliated.

General Growth has been systematically attempting to sidetrack Caruso's Americana at Brand retail, housing and entertainment development in Glendale, Calif. that will be built across the street from its Glendale Galleria regional mall. General Growth launched its opposition to Caruso's project after it acquired the Galleria in late 2002. With strong community support, the city approved the Caruso project in April 2004. General Growth immediately financed a referendum forcing a city-wide election on the project. Voters approved the project in the September 14, 2004 election. Following its loss at the polls, General Growth immediately filed a legal challenge to aspects of the project's EIR.

Depositions are currently being taken in Caruso's antitrust suit against General Growth which is expected to go to trial early next year. The Caruso lawsuit claims that during this period General Growth intimidated tenants that were exploring leasing at the Americana at Brand, interfered with Caruso's business and employed unfair business practices by attempting to force a partnership to divide prospective tenants.

The Americana at Brand is a $264.2 million mixed-use project set on 15.5 acres that includes a two-acre park surrounded by a pedestrian promenade, fountains and outdoor seating and gathering places. It will feature 475,000 square feet for retail, dining and entertainment uses with 338 residential units.

Caruso is known for creating open-air community and regional centers that serve as local gathering places. Its style has become a recognized brand within the retail industry, which has become dominated by lifestyle shopping formats. A recognized leader in this trend, Caruso Affiliated's growth is approximately two times that of the largest publicly traded REITs and sales per square foot at Caruso properties are 40 percent higher than the industry average.