Chelsea Property Group Declares Dividend Related to Merger with Simon.

ROSELAND, N.J. -- Chelsea Property Group, Inc. (NYSE: CPG) announced today that its Board of Directors declared a partial quarterly cash dividend on its common stock for the period from October 1, 2004 to the effective date of Chelsea's merger with Simon Property Group, Inc. (NYSE: SPG). The merger, which was announced in June 2004, is subject to various conditions including shareholder approval. The dividend is payable 10 days after the merger effective date to shareholders of record on the last business day prior to the merger effective date. Payment of the dividend is subject to completion of the merger.

Chelsea Property Group has scheduled a special shareholders meeting on October 13, 2004 to obtain shareholder approval of the merger. Assuming the merger closes on October 14th, shareholders of record on October 13th will receive a $0.091304 per share dividend. If the merger closes after October 14th, shareholders of record on the last business day prior to the merger effective date will receive an additional $0.006522 per share for each day thereafter, until the merger effective date.

Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that wholly or partially owns 60 Premium Outlet and other shopping centers - containing approximately 16.9 million square feet of gross leasable area - in 31 states and Japan. The Company's leading properties include Woodbury Common Premium Outlets, near New York City; Orlando Premium Outlets, in Orlando, Florida; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, near Tokyo. See www.cpgi.com for more information.