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The Mills Corporation Announces Update on Timing of Financial Statements and Status of Independent Investigation.

CHEVY CHASE, Md. -- The Mills Corporation (NYSE:MLS) announced today that it now expects to file its Form 10-K in three to four weeks. The Mills' first, second and third quarter 2006 Form 10-Qs are expected to be filed shortly after the 2005 Form 10-K is filed with the Securities and Exchange Commission ("SEC").

In a Current Report on Form 8-K filed with the SEC on September 15, 2006, The Mills reported that it believed that it would file its 2005 Form 10-K on or about October 31, 2006. This timing was dependent on, among other things, completion of the restatement of prior years' financial statements, the completion of the independent investigation being conducted by the Audit Committee of the Board of Directors of The Mills, with the assistance of Gibson, Dunn & Crutcher, LLP, the Audit Committee's independent counsel, and the completion of the audit of The Mills' 2005 financial statements conducted by the Company's independent registered public accountants, Ernst & Young LLP.

Due in part to the complexity of the restatement, the number of accounting adjustments and the number of years being restated, the time required to complete the independent investigation, the status of which is described below, and the time required by Ernst & Young to complete its audit procedures, it has taken longer than expected to finalize The Mills' 2005 Form 10-K.

As disclosed in a press release issued on February 23, 2006, the Audit Committee, advised by independent counsel, has been conducting an investigation (the "Investigation") into various accounting issues, including those issues reported in The Mills' Current Reports on Form 8-K filed January 6, February 24, March 17, May 11 and August 10, 2006, and various other issues that were brought to the attention of the Audit Committee and its independent counsel during the course of the Investigation. The Investigation is now essentially complete.

The Audit Committee has received oral reports from its independent counsel regarding the anticipated findings of the Investigation. The Audit Committee and its independent counsel also have kept the Company's Board of Directors, Ernst & Young, and the staff of the SEC, Division of Enforcement, apprised regarding the anticipated findings of the Investigation. The Audit Committee and its independent counsel, subject to the identification by the Company or Ernst & Young of any additional issue prior to the filing of the Company's financial statements for the year ended December 31, 2005 and the Company's restated financial statements for certain prior years, expect to complete the Investigation by mid-November 2006.

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 and market-dominant retail and entertainment centers. It currently owns 39 properties in the United States totaling approximately 48 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

Statements in this press release that are not historical, including, among other things, as to the expected filing dates of The Mills' 2005 Form 10-K and its Form 10-Qs for the first three quarters of 2006, 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 and it is possible that The Mills actual circumstances and results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties, including the length of time needed for The Mills to complete its 2005 financial statements, its 2005 Form 10-K and its Form 10-Qs for the first three quarters of 2006 and Ernst & Young to complete its procedures for any reason including the detection of new errors or adjustments. 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.
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Publication:Business Wire
Date:Oct 30, 2006
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