CBL Closes Second Phase Of Joint Venture With Galileo America REIT

Tuesday, January 6, 2004

CBL & Associates Properties, Inc. (NYSE:CBL) announced today that it has completed the second phase of its joint venture with Galileo America REIT, the U.S. affiliate of Australia-based Galileo America Shopping Trust (ASX:GSA).

CBL sold to the joint venture six power and community centers for total consideration of approximately $92.4 million. CBL received approximately $62.7 million after closing costs and retirement of debt.

The joint venture assumed approximately $2.8 million of existing debt on one of the properties, and CBL retired $25.9 million in debt associated with one property. The six properties generated net operating income of approximately $4.2 million in 2003. One of the six properties, opened in October 2003, was in operation for the last three months of the year.

Completed in October 2003, CBL's joint venture with Galileo includes a total of 51 centers. CBL has sold 47 centers to date and the third and final phase will be comprised of four properties to be contributed in January 2005. Pursuant to a long-term agreement, CBL is a 10% joint venture partner and will be the exclusive manager for all of Galileo's properties in the United States and will be entitled to management, leasing, acquisition, disposition and financing fees. Net cash proceeds to CBL from all three phases are expected to total approximately $387 million, and the transaction is expected to generate gains on a GAAP basis totaling approximately $99 million. The Company expects that the taxable gain from the transaction will be deferred as the net proceeds are being reinvested.

The Company also announced that during the fourth quarter of 2003 three community centers were sold and that it received payment in full on a mortgage note receivable held on one property. The properties sold during the quarter were East Towne Crossing in Knoxville, TN; Orange Plaza in Roanoke, VA; and Colleton Square in Walterboro, SC. The mortgage for which the Company received payment during the fourth quarter was on University Crossing in Pueblo, CO. The net proceeds from the sale of these properties were approximately $7.8 million.

CBL & Associates Properties, Inc. owns or holds interests in 162 properties, including 60 enclosed regional malls. The properties are located in 26 states and total 62.9 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. The Company has seven projects under construction totaling approximately 1.9 million square feet, including one mall - Coastal Grand - Myrtle Beach, SC, one associated center, two community centers and three expansions. In addition to its office in Chattanooga, the Company has a regional office in Boston (Waltham), MA. Additional information about the Company can be found on its website at www.cblproperties.com.

Galileo Shopping America Trust is a newly formed Australian property trust created to invest in a joint venture with CBL & Associates Properties, Inc., an owner and developer of shopping centers for over 25 years. CBL is listed on the New York Stock Exchange under the ticker, "CBL." The Trust will invest in power and community shopping centers in North America and its portfolio will initially include 51 power and community shopping centers totaling 6.6 million square feet in 16 states.

Phase II Properties GLA
Owned
Description Total by Anchor Leasable
--------------------------------- ---------- ---------- ----------
Longview Crossing - Hickory, NC 40,598 0 40,598
Springs Crossing - Hickory, NC 42,920 0 42,920
Stone East Plaza - Kingsport, TN 45,259 0 45,259
Valley Crossing - Hickory, NC 186,077 0 186,077
Waterford Commons - Waterford, CT 353,086 110,789 242,297
Willow Springs Plaza - Nashua, NH 224,753 94,000 130,753
---------- ---------- ----------
Subtotal - Phase II properties 892,693 204,789 687,904
---------- ---------- ----------



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