Excel Legacy Pairs With Entertainment Properties Trust On Westminster Promenade.

SAN DIEGO--(BUSINESS WIRE)--July 21, 1999--

Joint Venture Partnership Proceeding with Construction on New Colorado

Urban Entertainment Center Anchored by Top-Grossing AMC 24-Screen

Theatre

Excel Legacy Corp. (AMEX:XLG) announced today the formation of a joint venture partnership with Entertainment Properties Trust (NYSE:EPR), to develop the $50 million Westminster Promenade, the largest new urban entertainment-themed retail center (ETRC) in Colorado's north metropolitan area.

Situated on a prime 42-acre site at the junction of the Denver/Boulder Turnpike (US Highway 36) and 104th Avenue, Westminster Promenade will encompass up to 325,000 square feet of hotel, restaurant, specialty retail, and entertainment retail space, and is anchored by an existing 24-screen AMC theater owned by Excel Legacy Corp.

The 5,100-seat theater was recently ranked as the sixth highest-grossing theater in North America (in film revenues) by Entertainment Data Inc. (EDI). The theater's 1999 attendance figures are estimated at about 2.4 million visitors.

Construction of the newest phase of the Westminster Promenade is scheduled to get underway next month, with completion slated for the first quarter of 2000.

"Westminster Promenade is an example of how retail/entertainment center ventures, executed in cooperation with strong development partners and local community cooperation, enable Excel Legacy Corp. to create signature entertainment retail projects," said Gary B. Sabin, chairman of Excel Legacy Corp.

The Westminster Promenade is currently more than 70 percent committed, based on leases and agreed letters of intent. Representative tenants include AMC, Dave and Busters, Johnny Carino's, Rubio's Baja Grill, Manos Folk Art, and Marble Slab Creamery.

Located in the heart of a major, high-growth business corridor, 20 minutes from Boulder and 20 minutes from downtown Denver, the outdoor Westminster Promenade is adjacent to a newly-developed mixed-use complex known simply as the "Promenade," which encompasses a three-sheet ice rink, a 368-room Westin Hotel, a 50,000-square-foot conference center, and 200,000 square feet of office space. Pedestrian walkways link more than 200 acres surrounding the Promenade, including the Butterfly Pavilion and Insect Center, as well as the City Parks and Recreation Center.

"Entertainment-anchored retail is becoming a prevalent trend for consumers all across America. This joint venture with Excel Legacy Corp., one of the most prominent developers of entertainment retail in America, lends a level of insight and expertise that will enable our team to produce one of the nation's premier entertainment centers," said Robert L. (Chip) Harris, president of Entertainment Properties Trust, the only public real estate investment company in the United States that focuses solely on entertainment-related properties.

According to Kelly D. Burt, executive vice president/Real Estate Development of Excel Legacy, "The face of retail is changing into a dynamic, entertainment-focused environment. With today's convenience-oriented society and the development of e-commerce, we have to draw people out of their homes and away from their computers by creating a development that is a cooperative effort between the public and private sectors. With the addition of attractions that go beyond traditional retail, we expect to be able to draw in excess of five million visitors per year at Westminster Promenade."

The design of Westminster Promenade will convey the atmosphere of a charming village square, reminiscent of yesterday's "Main Street," yet executed with a contemporary flair. The pedestrian-friendly center is intended to serve as a gathering place, with a performance pavilion, park benches and open space. The design of the center beckons visitors to shop, linger, dine and take in a movie, all in a day or an evening. Gensler of Denver is the project architect.

"We are very excited about this next phase of the Promenade, especially with the cooperative effort between Excel Legacy Corp., Entertainment Properties Trust, and the City of Westminster," said Bill Christopher, city manager of Westminster. "The knowledge and strength of this development team is certain to produce a quality product and round out our vision of the Promenade."

Excel Legacy's goal is to pursue signature projects that have the potential to generate above-average profits because of their unique locations, concepts and/or entry barriers. Excel Legacy is a public real estate company organized to create value through the acquisition, development and management of real property and real estate-related operating companies.

The company currently has approximately 33 projects in various stages of completion. Many of the projects are singularly unique with respect to the project, the inherent barriers to entry by competition and the substantial public assistance available to the projects. Excel Legacy is actively pursuing a variety of real estate opportunities including developing more mixed-use, retail/entertainment projects.

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 July 31, 1998, which discuss these and other factors that could adversely affect the company's results.