Excel Legacy Announces the Sale of Scottsdale Galleria, Transfer of Westminster Promenade & Completion of a $121 Million CMBS for Price Enterprises.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--July 5, 2000

Excel Legacy Corp. (Legacy)(AMEX:XLG) announced today the sale of the Scottsdale Galleria located in Scottsdale, Ariz.

The Galleria, which was acquired by Legacy in 1998 concurrently with the spin-off of Legacy from Excel Realty Trust Inc., was sold for approximately $29 million. The company will recognize an approximate $5 million gain in the third quarter 2000.

Legacy also announced the transfer its 50% interest in Westminster Promenade in Westminster, Colo. to its REIT affiliate, Price Enterprises Inc. (Price). The property is anchored by a 24-screen AMC theater and has approximately 140,000 square feet of additional retail space. The transfer of the property is consistent with Legacy's philosophy to transfer substantially completed properties to Legacy's REIT affiliate for holding long-term.

The influx of capital from asset sales will allow the company to focus its development efforts primarily on its existing larger mixed-use retail projects. Generally, these projects have very unique locations thus creating significant barriers to entry by competition.

The sale of the Galleria and the transfer of Westminster are part of several asset sales which the company contemplated when it announced its intention to generate cash to retire Legacy's short term debt, invest in the company's larger mixed use developments and repurchase the company's common stock. The assets to be sold include existing properties and smaller development projects.

In addition, Legacy announced that Price Enterprises Inc., had completed a $121 million Collateralized Mortgage Backed Security (CMBS) financing for five properties located within Price. The CMBS is a four year facility and is priced at 98 basis points over LIBOR. The funds will be used to retire the outstanding amount on Price's existing credit facility. A $75 million credit facility will remain for future growth.

Commenting on the sale, Gary B. Sabin, president & CEO, stated: "Legacy is moving along with its strategic plan to focus its resources on our larger more profitable development projects. The sale of the Galleria will allow us to now retire the majority of our short term debt as we had planned."

Certain statements in this release that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic conditions; the competitive environment in which the company operates; financing risks; property management risks; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Certain Cautionary Statements" in the company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1999, which discuss these and other factors that could adversely affect the company's results.