The Mills Corporation Announces Update on Timing of Financial Statements and Status of Independent Investigation

  
    
  
  
    
      The Mills Corporation (NYSE:MLS) announced today that it now expects to 
      file its Form 10-K in three to four weeks. The Mills’ 
      first, second and third quarter 2006 Form 10-Qs are expected to be filed 
      shortly after the 2005 Form 10-K is filed with the Securities and 
      Exchange Commission (“SEC”).
    
    
      In a Current Report on Form 8-K filed with the SEC on September 15, 
      2006, The Mills reported that it believed that it would file its 2005 
      Form 10-K on or about October 31, 2006. This timing was dependent on, 
      among other things, completion of the restatement of prior years’ 
      financial statements, the completion of the independent investigation 
      being conducted by the Audit Committee of the Board of Directors of The 
      Mills, with the assistance of Gibson, Dunn & Crutcher, LLP, the Audit 
      Committee’s independent counsel, and the 
      completion of the audit of The Mills’ 2005 
      financial statements conducted by the Company’s 
      independent registered public accountants, Ernst & Young LLP.
    
    
      Due in part to the complexity of the restatement, the number of 
      accounting adjustments and the number of years being restated, the time 
      required to complete the independent investigation, the status of which 
      is described below, and the time required by Ernst & Young to complete 
      its audit procedures, it has taken longer than expected to finalize The 
      Mills’ 2005 Form 10-K.
    
    
      As disclosed in a press release issued on February 23, 2006, the Audit 
      Committee, advised by independent counsel, has been conducting an 
      investigation (the “Investigation”) 
      into various accounting issues, including those issues reported in The 
      Mills’ Current Reports on Form 8-K filed 
      January 6, February 24, March 17, May 11 and August 10, 2006, and 
      various other issues that were brought to the attention of the Audit 
      Committee and its independent counsel during the course of the 
      Investigation. The Investigation is now essentially complete.
    
    
      The Audit Committee has received oral reports from its independent 
      counsel regarding the anticipated findings of the Investigation. The 
      Audit Committee and its independent counsel also have kept the Company’s 
      Board of Directors, Ernst & Young, and the staff of the SEC, Division of 
      Enforcement, apprised regarding the anticipated findings of the 
      Investigation. The Audit Committee and its independent counsel, subject 
      to the identification by the Company or Ernst & Young of any additional 
      issue prior to the filing of the Company’s 
      financial statements for the year ended December 31, 2005 and the Company’s 
      restated financial statements for certain prior years, expect to 
      complete the Investigation by mid-November 2006.
    
    
      About The Mills Corporation
    
    
      The Mills Corporation, based in Chevy Chase, MD, is a developer, owner 
      and manager of a diversified global portfolio of retail destinations, 
      including regional shopping malls and market-dominant retail and 
      entertainment centers. It currently owns 39 properties in the United 
      States totaling approximately 48 million square feet. In addition, The 
      Mills has various projects in development, redevelopment or under 
      construction. 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 expected filing dates of The Mills’ 
      2005 Form 10-K and its Form 10-Qs for the first three quarters of 2006, 
      may be deemed forward-looking statements within the meaning of the 
      federal securities laws. Although The Mills believes the expectations 
      reflected in any forward-looking statements are based on reasonable 
      assumptions, The Mills’ can give no assurance 
      that its expectations will be attained and it is possible that The Mills 
      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 length of time needed for The Mills to 
      complete its 2005 financial statements, its 2005 Form 10-K and its Form 
      10-Qs for the first three quarters of 2006 and Ernst & Young to complete 
      its procedures for any reason including the detection of new errors or 
      adjustments. The Mills 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 
      Mills’ 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.
    
  
The Mills Corporation (NYSE:MLS) announced today that it now
expects to file its Form 10-K in three to four weeks. The Mills'
first, second and third quarter 2006 Form 10-Qs are expected to be
filed shortly after the 2005 Form 10-K is filed with the Securities
and Exchange Commission ("SEC").

   In a Current Report on Form 8-K filed with the SEC on September
15, 2006, The Mills reported that it believed that it would file its
2005 Form 10-K on or about October 31, 2006. This timing was dependent
on, among other things, completion of the restatement of prior years'
financial statements, the completion of the independent investigation
being conducted by the Audit Committee of the Board of Directors of
The Mills, with the assistance of Gibson, Dunn & Crutcher, LLP, the
Audit Committee's independent counsel, and the completion of the audit
of The Mills' 2005 financial statements conducted by the Company's
independent registered public accountants, Ernst & Young LLP.

   Due in part to the complexity of the restatement, the number of
accounting adjustments and the number of years being restated, the
time required to complete the independent investigation, the status of
which is described below, and the time required by Ernst & Young to
complete its audit procedures, it has taken longer than expected to
finalize The Mills' 2005 Form 10-K.

   As disclosed in a press release issued on February 23, 2006, the
Audit Committee, advised by independent counsel, has been conducting
an investigation (the "Investigation") into various accounting issues,
including those issues reported in The Mills' Current Reports on Form
8-K filed January 6, February 24, March 17, May 11 and August 10,
2006, and various other issues that were brought to the attention of
the Audit Committee and its independent counsel during the course of
the Investigation. The Investigation is now essentially complete.

   The Audit Committee has received oral reports from its independent
counsel regarding the anticipated findings of the Investigation. The
Audit Committee and its independent counsel also have kept the
Company's Board of Directors, Ernst & Young, and the staff of the SEC,
Division of Enforcement, apprised regarding the anticipated findings
of the Investigation. The Audit Committee and its independent counsel,
subject to the identification by the Company or Ernst & Young of any
additional issue prior to the filing of the Company's financial
statements for the year ended December 31, 2005 and the Company's
restated financial statements for certain prior years, expect to
complete the Investigation by mid-November 2006.

   About The Mills Corporation

   The Mills Corporation, based in Chevy Chase, MD, is a developer,
owner and manager of a diversified global portfolio of retail
destinations, including regional shopping malls and market-dominant
retail and entertainment centers. It currently owns 39 properties in
the United States totaling approximately 48 million square feet. In
addition, The Mills has various projects in development, redevelopment
or under construction. 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 expected filing dates of The
Mills' 2005 Form 10-K and its Form 10-Qs for the first three quarters
of 2006, may be deemed forward-looking statements within the meaning
of the federal securities laws. Although The Mills believes the
expectations reflected in any forward-looking statements are based on
reasonable assumptions, The Mills' can give no assurance that its
expectations will be attained and it is possible that The Mills 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 length of time needed for The Mills to
complete its 2005 financial statements, its 2005 Form 10-K and its
Form 10-Qs for the first three quarters of 2006 and Ernst & Young to
complete its procedures for any reason including the detection of new
errors or adjustments. The Mills 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 Mills' 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.