Site Work Begins on Pearland Town Center, CBL's Premier Mixed-Use Development in Houston, Texas Market.

Pearland Town Center's Retail Component Boasts 60% Leased and Committed Prior to the Commencement of Construction

CHATTANOOGA, Tenn. -- CBL & Associates Properties, Inc. (NYSE:CBL) today announced the start of site work for Pearland Town Center, a 1.2 million square-foot premier mixed-use development in Houston (Pearland), TX. Pearland Town Center will offer premium retail, residential, office and hotel space in an open-air pedestrian friendly environment. The center's retail space is already 60% leased and committed. Pearland Town Center is scheduled to open in fall 2008.

"We are excited to begin site work on Pearland Town Center," said Michael Lebovitz, chief development officer of CBL & Associates Properties, Inc. "Prior to starting construction our retail pre-leasing efforts have been very successful and we are already 60% leased and committed. That is a testament to the type of development we are doing in Pearland. We are creating a truly unique mixed-use development that will become the focal point for shopping, dining, entertainment, working and living in the greater Houston area."

Shopping and Leisure

Pearland Town Center will feature a 718,000 square-foot open-air lifestyle center anchored by fashion department stores Dillard's and Macy's. The lifestyle center will also feature Barnes & Noble along with more than 90 specialty retailers and restaurants such as Chico's, White House|Black Market, Ann Taylor LOFT, Coldwater Creek, Brooks Brothers Country Club, Paiva, Eddie Bauer, Victoria's Secret; junior apparel retailers American Eagle/aerie, Aeropostale, Buckle, Finish Line, For Love 21, Forever 21, Hollister, Pacific Sunwear and Bath & Body Works. Additional space remains available for local, regional and national specialty retailers and restaurateurs.

Lodging and Leisure

The recently announced Courtyard by Marriott will add yet another reason for Pearland Town Center to become one of Houston's leading mixed-use destinations. The 110-room, four-story hotel will be located above the lifestyle center near Macy's. The Courtyard by Marriott's hotel entrance will be located on the street level and will be designed to complement the neighboring retailers and overall streetscape design of the center. The hotel will also feature a main lobby on the second floor, central courtyard area, a restaurant/lounge, meeting space, a swimming pool, exercise room and high-speed Internet access.

Living and Leisure

CBL's Pearland Town Center will offer a multi-family residential component of the development that will be located above the retail providing residents with the comforts of home and the convenience of urban living. Residents will enjoy the accessibility of nearby stores and eateries as well as strolling along the miles of walking paths and parks that wind around a 25-acre lake.

Working Environment

Premium office space above the retail shops will offer optimal efficiency to businesses at Pearland Town Center. The center's business services and amenities along with easy access to major interstates and nearby Hobby Airport create an environment to help any business grow and thrive. In addition to the convenient location, businesses can take advantage of numerous retail options, restaurants and lodging facilities for their out-of-town business associates.

The Pearland Town Center Experience

Living and working, shopping and leisure, Pearland Town Center will be a signature open-air, mixed-use destination providing a distinctly different lifestyle and shopping experience. The destination will feature unique design elements and architecture influenced by Pearland's heritage. Canopies, trellises, awnings and colonnades will frame the fa[?]ade of the storefronts. Pearland Town Center's warm and inviting pedestrian environment will be highlighted by tree-lined boulevards, convenient curbside parking, beautiful landscaping, a decorative water feature, a community events pavilion and walking paths, which will create a sense of place and a distinct area to gather.

Conveniently located at FM 518 and Highway 288, Pearland Town Center will be situated on 147 acres of premium retail space within the greater Houston metropolitan corridor. The addition of residential units and office space to this mixed-use development will create new living and working options for this growing city. The community will also benefit from the shopping, dining, living and entertainment destination through the creation of an estimated 1,500 jobs and approximately $250 million in sales annually.

Contact Information

Leasing:
Les Garrett          Regional Leasing Director      [phone]
                     Development Leasing
                     [e-mail]

Jeanna Webb          Leasing Manager                [phone]
                     [e-mail]

John Waller          Vice President                 [phone]
                     Development Leasing
                     [e-mail]

Development:
Michael Lebovitz     Chief Development Officer      [phone]
                     [e-mail]

Ken Wittler          Senior Project Manager         [phone]
                     [e-mail]

Outparcels:
Rusty Phillips       Vice President                 [phone]
                     Peripheral Property
                     [e-mail]

Robert Snetman       Senior Director                [phone]
                     Peripheral Property
                     [e-mail]

Available restaurant space:
Bryant Siragusa      National Director of Mall      [phone]
                     Restaurants and Entertainment
                     [e-mail]

About CBL

CBL owns and manages six regional malls in Texas including Parkdale Mall in Beaumont, Sunrise Mall in Brownsville, Post Oak Mall in College Station, Plaza del Sol in Del Rio, Mall del Norte in Laredo and Richland Mall in Waco, plus a community center in Houston.

CBL is one of the largest and most experienced owners and developers of malls and shopping centers in the country. CBL owns, holds interests in or manages 130 properties, including 79 regional malls/open-air centers. The properties are located in 27 states and total 74.0 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. Including Pearland Town Center, CBL currently has fourteen projects under construction totaling 3.0 million square feet. Other projects include Phase II of Gulf Coast Town Center in Ft. Myers, FL; Alamance Crossing in Burlington, NC; three lifestyle/associated centers, seven mall expansions/redevelopments and one community center. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, and Dallas, TX. Additional information can be found at http://cblproperties.com.

Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.

NOTE TO EDITORS: There is a pipe symbol in the company name between White House and Black Market. This symbol may not appear properly in some systems.