The Mills Responds to Public Announcement of Gazit-Globe's Proposal.

Mills Board of Directors Reaffirms Commitment to Maximizing Value for Shareholders

CHEVY CHASE, Md. -- The Mills Corporation (NYSE:MLS) responded today to the press release and Schedule 13D issued by Israeli corporation Gazit-Globe Ltd. and its chairman Chaim Katzman.

As has been previously announced by The Mills, the company and its board of directors - under the leadership of a special committee consisting of independent directors - are in the midst of exploring the company's strategic alternatives. The Mills board of directors is seeking to maximize shareholder value, for the benefit of all shareholders of The Mills, and accordingly has no predisposition or prejudice whatsoever in the strategic alternative process. Whether this result will be an outright sale of the company, a recapitalization, or some other transaction will be determined through a competitive process in which all interested persons have a fair opportunity to compete, for the benefit of all shareholders of The Mills. It is precisely that process which The Mills and its board of directors are currently conducting. Gazit-Globe is welcome to participate in that process and has been so advised by The Mills on numerous occasions, as is reflected in Gazit-Globe's own Schedule 13D, through in-person meetings and other contacts.

Gazit-Globe's recapitalization proposal is contingent on the completion of the announced Meadowlands Xanadu transaction with Colony Capital and other matters, including the satisfaction of a variety of financial tests and measures that The Mills will not be in a position to confirm or certify until the pending restatement of its financial statements has been completed. The Mills' management and board of directors are focused on completing the Meadowlands Xanadu transaction, the restatement of the company's financials, and other steps necessary to allow The Mills to position itself effectively to enter into a strategic alternative transaction or transactions.

Gazit-Globe's recapitalization proposal will be considered by The Mills' board of directors as part of the process of exploring strategic alternatives and maximizing value for all Mills shareholders.

About The Mills Corporation

The Mills Corporation, based in Chevy Chase, MD, is a developer, owner and manager of a diversified global portfolio of retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. It currently owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction. The Mills is traded on the New York Stock Exchange under the ticker: MLS. For more information, visit the Company's website at www.themills.com.

Statements in this press release that are not historical - including, among other things, as to The Mills' exploration of strategic alternatives, consummation of the Meadowlands Xanadu transaction with Colony Capital and other transactions and steps - may be deemed forward-looking statements within the meaning of the federal securities laws. Although The Mills believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, The Mills can give no assurance that its expectations will be attained or that the exploration of strategic alternatives will result in any transaction and it is possible that our actual circumstances and results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The Mills undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is directed to The Mills' various filings with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and its annual reports on Form 10-K, for a discussion of such risks and uncertainties.