The Mills Completes Internal Investigation Regarding Historical Accounting Policies and Practices

  
    
  
  
    
      The Mills Corporation (NYSE:MLS) announced today that the Audit 
      Committee of its Board of Directors has completed its comprehensive 
      investigation into various issues related to the historical accounting 
      policies and practices of The Mills Corporation (the “Company”).
    
    
      The investigation was conducted with the assistance of Gibson, Dunn & 
      Crutcher, LLP, the Audit Committee's independent counsel, and included 
      the collection and review of over four million pages of documents and 
      240 interviews of nearly 100 individuals. The Audit Committee and its 
      independent counsel have reported the findings of the investigation to 
      the Company’s Board of Directors, to Ernst & 
      Young, the Company’s outside auditor, and to 
      the staff of the U.S. Securities and Exchange Commission (“SEC”), 
      Division of Enforcement. The Company continues to cooperate fully with 
      the SEC in its ongoing investigation.
    
    
      To address the concerns identified during the course of the 
      investigation, including material weaknesses in the Company’s 
      internal control over financial reporting, the Company, with the 
      oversight of the Board of Directors, has taken several important 
      remedial steps, including, over the course of the past year, a 
      near-complete change of executive management personnel.
    
    
      As the result of various accounting adjustments arising in part from the 
      investigation, as previously disclosed, the Company and The Mills 
      Limited Partnership (“TMLP”) 
      will be restating their financial statements for 2001-2004 and the first 
      three quarters of 2005.
    
    
      Details regarding the investigation and certain remedial measures taken, 
      an update on the anticipated ranges of the cumulative impacts of the 
      restatement on the Company’s and TMLP’s 
      financial statements, the anticipated effect of the planned changes in 
      accounting principles, 2005 and 2006 impairment charges and outstanding 
      consolidated debt and mandatory redeemable preferred stock is provided 
      in a report on Form 8-K filed today with the SEC.
    
    
      About The Mills Corporation
    
    
      The Mills Corporation, based in Chevy Chase, MD, is a developer, owner 
      and manager of a diversified portfolio of retail destinations, including 
      regional shopping malls and market-dominant retail and entertainment 
      centers. It currently owns 38 properties in the United States totaling 
      approximately 47 million square feet. The Mills is traded on the New 
      York Stock Exchange under the ticker: MLS. For more information, visit 
      the Company's website at www.themills.com.
    
    
      Statements in this press release that are not historical, including, 
      among other things, as to the anticipated impacts of the pending 
      restatement of the Company’s and TMLP’s 
      financial statements and changes in accounting principles and the amount 
      of the impairment charges that are expected to be recorded, may be 
      deemed forward-looking statements within the meaning of the federal 
      securities laws. Although the Company 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 its 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 identification of any additional matters requiring 
      adjustment, completion of the restated financial statements, the length 
      of time needed for E&Y to complete their procedures, any actions taken 
      by the SEC or other factors. The Company 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 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.