Developers Diversified Announces Closing of $400 Million Secured Debt Financing

Developers Diversified Realty Corporation (NYSE: DDR) announced today that it has obtained new first mortgage financing from Goldman Sachs Commercial Mortgage Capital, L.P., an affiliate of Goldman, Sachs & Co. The $400 million, five-year loan is secured by a portfolio of 28 stabilized shopping centers. The Company and Goldman Sachs are continuing to work with the Federal Reserve to make the newly-originated loan eligible for the Term Asset-Backed Securities Loan Facility (or TALF program).

Proceeds from the financing will be used to repay existing debt on certain properties in the portfolio, to repay other first mortgage debt with near-term maturities and to reduce amounts outstanding on the Company’s revolving credit facilities.

David Oakes, Senior Executive Vice President of Finance and Chief Investment Officer, commented, “We are pleased to announce continued progress raising long-term capital to retire short-term debt, and we look forward to announcing additional progress in the coming months.”

Developers Diversified Realty Corporation considers portions of this information to be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements, including, among other factors, that the loan will be eligible for the TALF program. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Developers Diversified Realty Corporation, as of June 30, 2009, owns and manages approximately 690 retail operating and development properties in 45 states, plus Puerto Rico, Brazil and Canada, totaling approximately 151 million square feet. Developers Diversified Realty Corporation is a self-administered and self-managed REIT operating as a fully integrated real estate company that acquires, develops, leases and manages shopping centers. Additional information about Developers Diversified is available on the Internet at www.ddr.com.