The Mills Corporation Completes Sale of Its International Operating Properties to Ivanhoe Cambridge

  
    
  
  
    
      The Mills Corporation (NYSE:MLS) announced today that it has completed 
      the previously disclosed sale of its interests in Vaughan Mills 
      (Ontario, Canada), St. Enoch Centre (Glasgow, Scotland) and Madrid Xanadú 
      (Madrid, Spain) to Ivanhoe Cambridge, Inc. for approximately US$988 
      million, with net proceeds of approximately US$500 million before 
      transaction costs, but net of expected foreign taxes.
    
    
      Approximately US$400 million was used to immediately pay down a portion 
      of the Senior Term loan with Goldman Sachs Mortgage Company, as 
      Administrative Agent. A significant portion of the remaining proceeds 
      are being held in escrow for foreign taxes in an amount in excess of the 
      taxes expected to be due. Additional proceeds are being held in 
      connection with the previously disclosed litigation with Parcelatoria de 
      Gonzalo Chacon. Most on-site employees were retained by Ivanhoe 
      Cambridge as part of the transfer.
    
    
      “This transaction demonstrates that we are 
      moving forward with our efforts to sell all or part of the Company,” 
      said The Mills Corporation Chief Executive Officer and President Mark S. 
      Ordan.
    
    
      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.
    
    
      Ivanhoe Cambridge
    
    
      Ivanhoe Cambridge is a recognized leader in the Canadian real estate 
      industry. It is one of the country’s 
      pre-eminent property owners, managers, developers and investors. The 
      Company focuses on high-quality shopping centres located in urban areas. 
      Beyond its strong Canada-wide presence, the Company is also active in 
      the United States, Asia and Europe – where it 
      partners with prominent real estate entities. Its real estate portfolio 
      consists of more than 43.2 million square feet of retail space and 
      includes over 65 regional and super-regional shopping centres. As at 
      December 31, 2005, the market value of Ivanhoe Cambridge’s 
      assets reached CAD $9.3 billion. Headquartered in Montreal, Quebec, 
      Canada, Ivanhoe Cambridge is a principal real estate subsidiary of the 
      Caisse de dépôt et 
      placement du Québec, the largest institutional 
      fund manager in Canada. Amongst its shareholders, the Company also 
      counts four prominent Canadian pension funds. The Company's Internet 
      address is www.ivanhoecambridge.com.
    
    
      Statements in this press release that are not historical - including, 
      among other things, as to the exploration of strategic alternatives, 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 
      circumstances and 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 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. 
      There can be no assurance that the exploration of strategic 
      alternatives will result in any transaction.
    
  
The Mills Corporation (NYSE:MLS) announced today that it has
completed the previously disclosed sale of its interests in Vaughan
Mills (Ontario, Canada), St. Enoch Centre (Glasgow, Scotland) and
Madrid Xanadu (Madrid, Spain) to Ivanhoe Cambridge, Inc. for
approximately US$988 million, with net proceeds of approximately
US$500 million before transaction costs, but net of expected foreign
taxes.

   Approximately US$400 million was used to immediately pay down a
portion of the Senior Term loan with Goldman Sachs Mortgage Company,
as Administrative Agent. A significant portion of the remaining
proceeds are being held in escrow for foreign taxes in an amount in
excess of the taxes expected to be due. Additional proceeds are being
held in connection with the previously disclosed litigation with
Parcelatoria de Gonzalo Chacon. Most on-site employees were retained
by Ivanhoe Cambridge as part of the transfer.

   "This transaction demonstrates that we are moving forward with our
efforts to sell all or part of the Company," said The Mills
Corporation Chief Executive Officer and President Mark S. Ordan.

   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.

   Ivanhoe Cambridge

   Ivanhoe Cambridge is a recognized leader in the Canadian real
estate industry. It is one of the country's pre-eminent property
owners, managers, developers and investors. The Company focuses on
high-quality shopping centres located in urban areas. Beyond its
strong Canada-wide presence, the Company is also active in the United
States, Asia and Europe - where it partners with prominent real estate
entities. Its real estate portfolio consists of more than 43.2 million
square feet of retail space and includes over 65 regional and
super-regional shopping centres. As at December 31, 2005, the market
value of Ivanhoe Cambridge's assets reached CAD $9.3 billion.
Headquartered in Montreal, Quebec, Canada, Ivanhoe Cambridge is a
principal real estate subsidiary of the Caisse de depot et placement
du Quebec, the largest institutional fund manager in Canada. Amongst
its shareholders, the Company also counts four prominent Canadian
pension funds. The Company's Internet address is
www.ivanhoecambridge.com.

   Statements in this press release that are not historical -
including, among other things, as to the exploration of strategic
alternatives, 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 circumstances and 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 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. There can be no assurance that the
exploration of strategic alternatives will result in any transaction.