Feldman Mall Properties, Inc. Announces a Contract to Purchase the Tallahassee Mall in Tallahassee, Florida.

GREAT NECK, N.Y. -- Feldman Mall Properties, Inc. (NYSE: FMP), a real estate investment trust focused on the renovation and repositioning of retail shopping malls, today announced the signing of a purchase contract to acquire Tallahassee Mall (the "Mall"), a 963,000 square foot mall located in Tallahassee, the state capital of Florida. The purchase contract is subject to the completion of customary real estate contractual requirements. In addition, the purchase contract is subject to the approval of the assumption of the existing mortgage loan by the Company. The purchase price of $61.5 million includes the assumption of the existing mortgage loan of approximately $45.3 million plus cash in the amount of approximately $16.2 million. The property is subject to a long term ground lease that expires in the year 2063 (assuming the exercise of an extension option).

The Company is acquiring all of the anchors and shops. The Mall's four major anchor tenants are AMC Theaters, the only 20-screen stadium seating theater in the Tallahassee market, Dillard's, Parisian and Burlington Coat Factory. In addition, the Mall contains a remarkably strong roster of seven "big box" junior anchor tenants: Old Navy, Sports Authority, Goody's, Ross Dress for Less, Shoe Carnival, Barnes & Noble and Guitar Center.

Overall occupancy at the Tallahassee Mall is 96.8% including anchor tenants. Excluding anchor tenants and excluding temporary tenants, the shop occupancy is 68.4%. Including temporary tenants, the shop occupancy is 84.8%. The sales trends at Tallahassee Mall are positive with shop sales growing around 6% per annum and averaging about $325 per square foot.

The city of Tallahassee is located in northwestern Florida, 20 miles north of the Gulf of Mexico and only 13 miles south of Georgia. The mall itself is located minutes from the center of the capital district, Interstate 10 and three major college campuses with a combined population of 65,000 students: Florida State University (FSU), Florida Agriculture and Mechanical University (FAMU) and Tallahassee Community College. Excluding area students, the population within a 10-mile radius has experienced a 22% increase from 1990 to 2000 and employment has consistently increased each year for all industry sectors.

"The Tallahassee Mall possesses all of the primary characteristics our management team seeks in an investment property: a dense and growing population, strong local drivers of economic activity and close proximity to major interstates," said Larry Feldman, Chairman and Chief Executive Officer of Feldman Mall Properties, Inc.

Tom Wirth, the Company's Chief Financial Officer commented, "The Company expects an initial yield on its investment of approximately 7.9%, based upon the anticipated operating income for 2005. Similar to our Northgate purchase, this initial return is somewhat lower than our target yield. However, the Company believes that the long term benefits from this purchase will generate significantly higher returns from the lease-up of vacant space, the conversion of temporary space to permanent leases for tenants ideally suited for the market, higher rental rates as shop sales improve over time and increases in cart, kiosk and other specialty leasing income."

Scott Jensen, Executive Vice President of Leasing, added: "To build upon the Mall's solid sales trends, we will upgrade the mall to make it more aesthetically appealing and thereby improve shopper traffic. Plans include building one or more additional junior anchor tenants, aggressively targeting young adult retailers in effort to better service the 65,000 students on the nearby college campuses and we intend to lease to multiple restaurant chains in order to supplement the highly successful AMC movie theater."

Upon completing this transaction, together with the anticipated closing of the acquisition of the Northgate Mall, the Company's portfolio including non-owned anchor tenants will consist of six regional malls aggregating approximately 6.2 million square feet.

To receive the Company's latest news release and other corporate documents, please contact The Company at [phone]. All releases and supplemental data can also be downloaded directly from the Feldman Mall Properties website at: www.FeldmanMall.com.

About Feldman Mall Properties, Inc.

Feldman Mall Properties, Inc. acquires, renovates and repositions enclosed retail shopping malls. Feldman Mall Properties Inc.'s investment strategy is to opportunistically acquire underperforming malls and transform them into physically attractive and profitable Class A or near Class A malls through comprehensive renovation and re-tenanting efforts aimed at increasing shopper traffic and tenant sales. For more information on Feldman Mall Properties Inc., visit the Company's website at www.feldmanmall.com.

Forward-looking Information:

This press release contains forward-looking statements that involve risks and uncertainties regarding various matters, including without limitation the success of our business strategy, including our acquisition, renovation and repositioning plans; our ability to close pending acquisitions and the timing of those acquisitions; our ability to obtain required financing; our understanding of our competition; market trends; our ability to implement our repositioning plans on time and within our budgets; projected capital and renovation expenditures; demand for shop space and the success of our lease-up plans; availability and creditworthiness of current and prospective tenants; and lease rates and terms. The forward-looking statements are based on our assumptions and current expectations of future performance. These assumptions and expectations may be inaccurate or may change as a result of many possible events or factors, not all of which are known to us. If there is any inaccuracy or change, actual results may vary materially from our forward-looking statements.