Meadowlands Xanadu Announces Official Groundbreaking Ceremony Date of September 29, 2004

08/03/2004 Category: Leasing and Development

The Mills Corporation, Mack-Cali Realty Corporation and Kan Am to Announce Greatest Collection of
Sponsors and Major Tenants at Groundbreaking Ceremony


This press release was sent out by the Mills Corporation. For more information, please contact the person listed at the bottom of release.

Arlington, Va. (August 3, 2004) — The Mills Corporation (NYSE: MLS), a leading developer of innovative retail and entertainment destinations, today announced a September 29, 2004 groundbreaking for Meadowlands Xanadu.

The ultimate sports, leisure, family entertainment and shopping complex in the United States — with an office and hotel component — will be built at the Meadowlands Sports Complex in East Rutherford, New Jersey. The development is being created by The Mills Corporation, in partnership with Mack-Cali Realty Corporation (CLI) and Kan Am, and in cooperation with the New Jersey Sports and Exposition Authority.

The Mills Chairman and Chief Executive Officer Laurence C. Siegel said, "Meadowlands Xanadu is well on its way to becoming a reality. At the groundbreaking ceremony, we will announce in grand style what we view to be the greatest collection of sponsors and major tenants from world-class media, entertainment, sports and retailing brands to ever co-locate at a single venue."

Kan Am, which has pledged $250 million in equity, already has funded $125 million. "More than $100 million has come in since the beginning of the second quarter, at a rate of nearly $1 million per day," said James Braithwaite, President, Kan Am Realty, Inc. "This is the most successful raise in the 26-year history of our Kan Am closed—end funds and demonstrates the level of investor confidence in this world-class project."

Mitchell E. Hersh, President and Chief Executive Officer of Mack-Cali, commented, "Today's announcement clearly demonstrates the progress of this unique project. We look forward to attracting leading businesses to Meadowlands Xanadu through our development of prime office and hotel space."

New Jersey Sports and Exposition Authority Chairman Carl Goldberg said, "The Meadowlands Xanadu groundbreaking will be the culmination of years of hard work that ultimately will lead to making the Meadowlands Sports Complex one of the country's premier sports and entertainment destinations."

About Meadowlands Xanadu Meadowlands Xanadu will be the ultimate sports, leisure, family entertainment and shopping complex in the United States. Rising at the Meadowlands Sports Complex in Northern New Jersey, Meadowlands Xanadu will feature 4.8 million square feet of unprecedented innovation. It will offer visitors of all ages a broad array of engaging experiences, including interactive entertainment venues, fine dining, outdoor amusements, runway fashion shows and its main attraction — America's first Snow Dome for indoor skiing. Meadowlands Xanadu will also offer a luxury hotel and Class A office buildings.

Meadowlands Xanadu is created by The Mills Corporation in partnership with Mack-Cali Realty Corporation and financing partner Kan Am, and in cooperation with the New Jersey Sports and Exposition Authority. The project is designed by noted architecture firm The Rockwell Group.

About The Mills Corporation The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Virginia that owns, develops, leases, manages and markets a portfolio of 27 retail and entertainment destinations totaling approximately 34 million square feet. Currently, the Company has eight projects under construction or development around the world. The Company's Internet address is www.themills.com.

About Mack-Cali Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali, which has a total market capitalization of approximately $4.9 billion, owns or has interests in 270 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 30 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,100 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com. About Kan Am Kan Am is a private international real estate company which manages over $6.3 billion in commercial real estate assets in the United States and Europe.

Note to Editors: Information on Meadowlands Xanadu, including a virtual tour of the project, is available at www.meadowlandsxanadu.com. # # #

Statements in this press release that are not historical may be deemed forward-looking statements within the meaning of the federal securities laws. Although The Mills Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The Mills Corporation 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 Company's various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K for a discussion of such risks and uncertainties.