Company Announces Major Land Acquisition and Shopping Complex in D'Iberville
New 700,000 Square-Foot Power Center to Bring Premium Retail to Underserved Community

From: CBL News Release        Filed 5/1/08 GCN

CHATTANOOGA, TN and ATLANTA, GA (May 1, 2008) - CBL & Associates Properties, Inc. (NYSE: CBL) and Forum Development Group, LLC (“Forum”) today announced the acquisition of approximately 72.0 acres in D’Iberville, MS, (Biloxi/Gulf Port) for the development of The Promenade, a 700,000 square foot power center.  The Promenade will feature eleven anchors and more than 80,000 square feet of specialty shops and restaurants. The project is a joint venture of CBL and Forum with CBL as the majority partner responsible for development, leasing and management.  Construction will begin this month with a grand opening scheduled for fall 2009.

“Following the destruction and setback that the Mississippi Gulf Coast suffered from Hurricane Katrina in 2005, we believe The Promenade will serve to revitalize the area and create a much needed retail hub and service district for the D’Iberville community,” said Stephen Lebovitz, president of CBL & Associates Properties, Inc.  “In large part due to the support of the city’s outstanding leadership, including Mayor Rusty Quave, City Manager Richard Rose and the entire City Council, together with the efforts of our joint venture partner, Forum, The Promenade development will make a truly positive impact on the D’Iberville community as it moves forward with rebuilding the city.  We would also like to express our sincere thanks and appreciation to the Harrison County Board of Supervisors, the Metropolitan Planning Organization, Mississippi Governor Haley Barber as well as Gray Swoope, Executive Director of the Mississippi Development Authority, who have all provided us with tremendous support and assistance.”

The Promenade will enjoy excellent access and visibility situated on 72 acres at the northwest corner of I-10 and I-110.  The surrounding market population of more than 320,000 has been underserved by retail since the devastation of Hurricane Katrina in 2005.  When developed, the project will be the largest retail shopping center, post-Katrina, in Southern Mississippi serving the entire Biloxi/Gulf Port MSA.  The Promenade will encourage economic growth in the area by creating in excess of an estimated 1,000 new jobs and producing more than $185 million in annual retail sales.  The project will benefit from tax exempt bond funding through the GO Zone (Gulf Opportunity Zone Act) legislation, which is designed to encourage development in Hurricane-impacted areas.

Lebovitz added, “With over 365,000 square feet of anchor space already committed and firm interest for much of the remaining space, The Promenade has a very strong foundation going into the construction phase and we look forward to making anchor and specialty store announcements in the very near future.”

“We are pleased to acquire the land for this exciting and important project,” said Bill Brown, co-founder and managing member of Forum Development Group, LLC.  “The Promenade will not only bring a high-quality shopping center to the market, but will create a new and much needed employment source as well as expanding the city’s tax revenue base.  With new jobs and a new revenue stream for the local government, The Promenade will enhance the quality of life in the community for all.  We are excited to work with CBL on this project, their expertise and relationships will serve to further secure the long-term success of The Promenade.”  

EMJ Corporation of Chattanooga, TN, will serve as general contractor for The Promenade.  Phillips Partnership of Atlanta is the architect.

Persons interested in learning more about leasing space should contact the following representatives:

Specialty Shops:
Bill Jensen
Director of Development Leasing                423-490-8293                bill_jensen@cblproperties.com
                                       
Anchor or big box opportunities:
Geoff Smith  
Vice President – Development                        423-490-8345                geoff_smith@cblproperties.com

Peripheral Property:
Robert Snetman
Senior Director, Peripheral Property                423-490-8333                robert_snetman@cblproperties.com

About Forum Development Group, LLC
Forum Development Group, LLC is a boutique development company that was founded in 1998 to specialize in quality lifestyle retail projects, power center developments, and mixed-use developments.  The principals of Forum have played significant roles in the leasing and construction of more than twenty five power centers, seven lifestyle centers and mega mixed-use projects.  With the company’s founders each having more than twenty two years of experience, Forum prides itself on creating great venues for its tenants and the communities they serve.  By maintaining an awareness of the continual changing face of retailing and the new dynamics that are shaping today’s and tomorrow’s tenant mix strategies, Forum has developed award winning centers “The Forum – Peachtree Parkway”, Atlanta, GA and “The Forum – Carlsbad,” Carlsbad, CA ,  that generate industry leading shopping frequencies and expenditure levels from their patrons.  As a privately held development company, Forum is a development company that is organized to move quickly and creatively.        

About CBL & Associates Properties, Inc.
CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 158 properties, including 86 regional malls/open-air centers. The properties are located in 27 states and total 84.7 million square feet including 2.2 million square feet of non-owned shopping centers managed for third parties. CBL currently has fifteen projects under construction totaling 4.0 million square feet including Pearland Town Center, Houston (Pearland), TX; Settlers Ridge in Pittsburgh, PA; The Pavilion at Port Orange in Port Orange, FL; Hammock Landing in West Melbourne, FL; two lifestyle/associated centers, eight expansions/redevelopments, and one community center. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas, TX, and St. Louis, MO.  Additional information can be found at 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.