Chelsea Closes on Acquisition of Four Properties from New Plan for $193 Million.

Business Editors

ROSELAND, N.J.--(BUSINESS WIRE)--Dec. 19, 2002

Chelsea Property Group, Inc. (NYSE: CPG) said today that it completed the previously announced acquisition of four outlet centers from New Plan Excel Realty Trust, Inc. (NYSE: NXL).

The four properties - totaling 1.3 million square feet of gross leasable area - are Jackson Outlet Village (Jackson, New Jersey); Factory Outlet Village Osage Beach (Osage Beach, Missouri); St. Augustine Outlet Center (St. Augustine, Florida); and Factory Merchants Branson (Branson, Missouri). The total purchase price was $193 million, paid in cash.

David Bloom, Chairman and Chief Executive Officer, said, "This closing caps a very busy year for Chelsea. During 2002, we completed acquisitions and joint venture buyouts with a total cost of more than $500 million, and at the same time began construction on a record amount of new space. With a dominant and still growing share of the market - particularly at the higher end - we remain very well positioned both financially and operationally to execute our growth plan."

Chelsea Property Group, Inc. is a fully integrated, self-managed and self-administered real estate investment trust (REIT) that wholly or partially owns 59 Premium Outlet(R) and other shopping centers - containing 14.4 million square feet of gross leasable area - in 30 states and Japan. The Company's leading properties include Woodbury Common Premium Outlets, near New York City; Orlando Premium Outlets, in Orlando, Florida; Desert Hills Premium Outlets, near Palm Springs, California; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, near Tokyo, Japan. Please see www.cpgi.com for more information.

Statements in this news release that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Chelsea Property Group believes the expectations reflected in such statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Forward-looking statements involve known and unknown risks that may cause actual results to differ materially from expected results. Risk factors include, without limitation: credit risk; the Company's ability to lease its properties; retail, real estate and economic conditions; competition; transaction closing risks; and other risks detailed from time to time in Chelsea Property Group's reports to the Securities and Exchange Commission. The Company accepts no responsibility for updating forward-looking statements.