The Mills Responds to Public Announcement of Gazit-Globe's Proposal

  
    
  
  
    
      The Mills Corporation (NYSE:MLS) responded today to the press release 
      and Schedule 13D issued by Israeli corporation Gazit-Globe Ltd. and its 
      chairman Chaim Katzman.
    
    
      As has been previously announced by The Mills, the company and its board 
      of directors – under the leadership of a 
      special committee consisting of independent directors – 
      are in the midst of exploring the company’s 
      strategic alternatives. The Mills board of directors is seeking to 
      maximize shareholder value, for the benefit of all shareholders of The 
      Mills, and accordingly has no predisposition or prejudice whatsoever in 
      the strategic alternative process. Whether this result will be an 
      outright sale of the company, a recapitalization, or some other 
      transaction will be determined through a competitive process in which 
      all interested persons have a fair opportunity to compete, for the 
      benefit of all shareholders of The Mills. It is precisely that process 
      which The Mills and its board of directors are currently conducting. 
      Gazit-Globe is welcome to participate in that process and has been so 
      advised by The Mills on numerous occasions, as is reflected in 
      Gazit-Globe’s own Schedule 13D, through 
      in-person meetings and other contacts.
    
    
      Gazit-Globe’s recapitalization proposal is 
      contingent on the completion of the announced Meadowlands Xanadu 
      transaction with Colony Capital and other matters, including the 
      satisfaction of a variety of financial tests and measures that The Mills 
      will not be in a position to confirm or certify until the pending 
      restatement of its financial statements has been completed. The Mills’ 
      management and board of directors are focused on completing the 
      Meadowlands Xanadu transaction, the restatement of the company’s 
      financials, and other steps necessary to allow The Mills to position 
      itself effectively to enter into a strategic alternative transaction or 
      transactions.
    
    
      Gazit-Globe’s recapitalization proposal will 
      be considered by The Mills’ board of directors 
      as part of the process of exploring strategic alternatives and 
      maximizing value for all Mills shareholders.
    
    
      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, market dominant retail and 
      entertainment centers, and international retail and leisure 
      destinations. It currently owns 42 properties in the U.S., Canada and 
      Europe, totaling 51 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 Mills’ 
      exploration of strategic alternatives, consummation of the Meadowlands 
      Xanadu transaction with Colony Capital and other transactions and steps 
      - 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 or that the exploration of strategic alternatives will 
      result in any transaction 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 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) responded today to the press
release and Schedule 13D issued by Israeli corporation Gazit-Globe
Ltd. and its chairman Chaim Katzman.

   As has been previously announced by The Mills, the company and its
board of directors - under the leadership of a special committee
consisting of independent directors - are in the midst of exploring
the company's strategic alternatives. The Mills board of directors is
seeking to maximize shareholder value, for the benefit of all
shareholders of The Mills, and accordingly has no predisposition or
prejudice whatsoever in the strategic alternative process. Whether
this result will be an outright sale of the company, a
recapitalization, or some other transaction will be determined through
a competitive process in which all interested persons have a fair
opportunity to compete, for the benefit of all shareholders of The
Mills. It is precisely that process which The Mills and its board of
directors are currently conducting. Gazit-Globe is welcome to
participate in that process and has been so advised by The Mills on
numerous occasions, as is reflected in Gazit-Globe's own Schedule 13D,
through in-person meetings and other contacts.

   Gazit-Globe's recapitalization proposal is contingent on the
completion of the announced Meadowlands Xanadu transaction with Colony
Capital and other matters, including the satisfaction of a variety of
financial tests and measures that The Mills will not be in a position
to confirm or certify until the pending restatement of its financial
statements has been completed. The Mills' management and board of
directors are focused on completing the Meadowlands Xanadu
transaction, the restatement of the company's financials, and other
steps necessary to allow The Mills to position itself effectively to
enter into a strategic alternative transaction or transactions.

   Gazit-Globe's recapitalization proposal will be considered by The
Mills' board of directors as part of the process of exploring
strategic alternatives and maximizing value for all Mills
shareholders.

   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, market dominant retail
and entertainment centers, and international retail and leisure
destinations. It currently owns 42 properties in the U.S., Canada and
Europe, totaling 51 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 Mills' exploration of
strategic alternatives, consummation of the Meadowlands Xanadu
transaction with Colony Capital and other transactions and steps - 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 or that the exploration of strategic alternatives
will result in any transaction 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 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.