Caruso Affiliated Wins Round 1 of Mall Wars: Los Angeles Lifestyle Developer Beats General Growth in Citywide Election on New Town Center in Glendale, CA.

GLENDALE, Calif. -- Caruso Affiliated, nationally renowned for reinventing the retail experience through stylish gathering places, has won voter approval in a citywide referendum to build a lifestyle center in Glendale, Ca., a major city seven miles north of downtown Los Angeles. The hotly contested election, instigated by General Growth Properties (NYSE:GGP), the country's second largest enclosed mall owner, has been watched closely by retail analysts around the country as round one of the "mall wars" - battles waged by owners of enclosed malls to fight off the outdoor, lifestyle shopping destinations that are now more popular with today's consumer.

Chicago-based General Growth, which owns a major mall adjacent to the proposed new Caruso development, has been the leader and financial backer of a campaign that forced Glendale to hold today's special election. It has spent millions of dollars to fend off competition from the Caruso project, throwing up legal roadblocks as well as funding the signature gatherers for a "No on Town Center" special election and campaign.

"The voters saw through General Growth's campaign of misinformation, deception and outright lies and perceived it for what it was - an effort to head off competition," said Rick J. Caruso, CEO of Caruso Affiliated. "This sends a very important message to General Growth and its shareholders."

The $265 million town center by Caruso Affiliated will encompass 475,000 square feet of retail, dining and movie theatres with a centerpiece two-acre park surrounded by a pedestrian promenade, fountains and outdoor seating and gathering areas.

In the election voters affirmed approvals given by the Glendale City Council on April 20, 2004, to Caruso Affiliated to build the Town Center.

"Now we can get busy creating an exciting destination that will put Glendale back on the map in southern California," said Caruso noting that the 15.5-acre site in the heart of Glendale's downtown currently is blighted and crime-infested.

Caruso Affiliated recently announced plans to invest $1 billion in six new retail destinations in California, the largest single ground-up retail development program in the nation. These include the first-ever racetrack retail, entertainment and housing venues at Santa Anita Park in Arcadia, a suburb of Los Angeles, and Golden Gate Fields in Albany in the San Francisco Bay Area as well as the Glendale project.

The Glendale town center will be similar to The Grove, Caruso Affiliated's wildly successful lifestyle and entertainment destination in the heart of Los Angeles adjacent to the historic Farmers Market that attracts 12 million visitors annually. The Grove ranks third in Southern California in highest annual average sales per square foot, ahead of General Growth's Glendale Galleria. Shoppers at The Grove spend double the industry average.

Caruso Affiliated for over 10 years has created a unique mix of culture, community and connection drawing millions of visitors each year to its quality destinations that focus on people places such as parks, promenades, fountains and plazas, integrated with upscale retail and entertainment. Reading the mood of today's savvy consumer, the company employs rich materials, design integrity and meticulously detailed environments that feel inviting, safe and comfortable for families and people of all ages. Service is a priority with employees trained to deliver the best customer experience and concierges on hand for personal shopping and other needs. Its style has become a recognized brand within the retail industry with other developers attempting to emulate the Caruso signature.

"CarusoStyle will soon come to Glendale, enhancing the city's image, expanding its retail and entertainment options and increasing its revenues and job base," predicted Caruso. "The larger mall developers may continue to defend their base, but the consumer (as well as the voter) has spoken. This kind of shopping experience clearly reflects what people are seeking today."