ARROYOMOLINOS, MADRID, Spain–(BUSINESS WIRE)–May 16, 2003–The Mills Corporation (NYSE:MLS) and its partner Parcelatoria de Gonzalo Chacon SA (PGC), announced today the opening in Madrid, Spain of Madrid Xanadu(SM), Europe’s largest indoor snow, shopping and leisure destination, open 365 days a year.

The 1.4 million-square-foot Madrid Xanadu offers 220 shopping, dining and entertainment venues, including 20 anchor/major stores, 30 casual restaurants, a variety of leisure activities and top international retail offerings. The property is leased at 97% and includes a 400,000-square-foot Tiendas El Corte Ingles and hypermarket.

In addition to featuring compelling entertainment offerings such as a 15-screen cinema, indoor go-carts and high-tech bowling, Madrid Xanadu also is home to the largest indoor snow sports facility in Europe, and the first in Spain. Offering a year-round alpine experience, Parque de Nieve Madrid Xanadu will feature two runs with different levels of difficulty to appeal to skiers and snowboarders of different skill levels. Ski and snowboards enthusiasts will enjoy perfect ski conditions all year round, with real, high-quality snow and consistently cold temperatures.

“We are thrilled to bring to the dynamic European market – and particularly to Madrid – Mills’ unique brand of innovative consumer destination that combines the best in retail, entertainment, dining and leisure,” said Larry Siegel, Chairman and CEO of The Mills Corporation. “Madrid Xanadu is an integral part of our overall business strategy of expanding the Mills portfolio to international markets.” The Mills Corporation, based in Arlington, Va., is the leading developer, owner and operator of innovative retail and entertainment destinations and the first U.S. real estate investment trust to successfully open a dominant retail center in Europe.

“Madrid Xanadu is the key reference for the next generation of Shopping and Leisure Centers” said Jaafar Jalabi, creator and promoter of Madrid Xanadu and President of PGC, owner and manager company of Parque de Nieve Madrid Xanadu.

Premium retail offerings complement Madrid Xanadu’s ground-breaking entertainment mix. The center features a variety of retailers that are well known in Europe and Spain, as well as other popular brands from the U.S., U.K., Italy, Sweden, Portugal, Argentina and France. Fashion retailers include Benetton, Mango, Nike, Zara, Billabong, Blunauta, Skechers, Tommy Hilfiger and many more. In addition, the center features Area Real Madrid, a specialty sports store featuring merchandise from the renowned Real Madrid soccer team and its sponsors. These retailers are in addition to anchor stores and specialty retailers including Hipercor and Tiendas El Corte Ingles, H&M, Bulebar and C&A.

Madrid Xanadu is conveniently located in Arroyomolinos, in the southwest region of Madrid, one of the fastest-growing regions in the country. An estimated 4.2 million potential visitors live within 20 minutes of the center. Madrid Xanadu offers easy access to and from the N-V highway and features more than 8,000 free parking spaces. Its merchants are open 365 days a year.

During the construction phase, Madrid Xanadu generated some 4,000 jobs. As an operating center it is expected to provide a minimum of 4,000 full- and part-time jobs to the area.

Madrid Xanadu is owned 66.7% owned by The Mills Limited Partnership Corporation and 33.3% by Parcelatoria de Gonzalo Chacon S.A. (PGC). Parque de Nieve Madrid Xanadu is owned 33.3% owned by The Mills Limited Partnership Corporation and 66.7% by PGC. A EUR193-million floating rate construction loan with a three-year term and two one-year extensions for Madrid Xanadu was provided by HypoVereinsbank’s Madrid Office.

About Madrid Xanadu

Madrid Xanadu is the largest snow, entertainment and retail destination in Europe, and features more than 220 retail, entertainment, dining and leisure venues. The centerpiece of the property is an 820-footong snow slope – the largest indoor snow sports facility in Europe. Geared toward family entertainment, Madrid Xanadu also boasts a movie complex, indoor go-carts, high-tech bowling and much more. Anchored by Hipercor and Tiendas El Corte Ingles, Madrid Xanadu brings numerous first-time retailers to the Spanish market. It is a joint venture of The Mills Corporation of the United States and Parcelatoria de Gonzalo Chacon of Madrid. Located in southwest Madrid, in Arroyomolinos, Madrid Xanadu is located on the N-V (Extremadura Road) and has more than 8,000 free parking spaces. Madrid Xanadu is open 365 days a year. For more information please visit www.millsmadridxanadu.com

About The Mills Corporation

The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Va., that owns, develops, leases, manages and markets a portfolio of 21 retail and entertainment destinations totaling more than 26 million square feet. Currently, the company has seven projects under construction and/or development around the world. The company’s Internet address is www.millscorp.com.

About Parque de Nieve Madrid S.L.

Parque de Nieve Madrid S.L. is the company in charge of the management of Parque de Nieve Madrid Xanadu. It is owned primarily by Parcelatoria de Gonzalo de Gonzalo Chacon (PGC), a Spanish real estate developer founded in 1946 and initial owner of the 95 Ha lands, where Madrid Xanadu is located. PGC has been responsible for the urban planning and for obtaining all the necessary licenses for the global project. Parque de Nieve Madrid S.L., developed all the initial studies and surveys related to the project and subsequently organized and obtained all necessary licenses and urban planning requirements. In addition, PGC has also researched other indoor snow facilities in Europe and Japan, as well as obtained the technology and the patented licenses to produce snow from Acer Snowmec. The company’s Internet address is www.parquedenievemadrid.es

FACT SHEET

MADRID XANADU (SM)

BACKGROUND: Madrid Xanadu(SM) is a bold, new concept that combines Europe’s largest indoor snow sports facility, compelling entertainment and top international retail offerings under one roof. Its unique mix of venues will engage consumers’ imaginations and create exceptional experiences, and make Madrid Xanadu a dominant consumer destination.

As the largest and most modern retail development in the Iberian Peninsula, Madrid Xanadu incorporates unique architecture and eye-catching design into its offering of the best mix of shopping, dining and leisure. The destination’s racetrack layout offers shoppers an easy and customer-friendly flow to experience 220 merchants, including 20 anchor/major stores and 30 casual restaurants. Geared toward family entertainment, visitors to Madrid Xanadu can enjoy the indoor snow sports facility, a 15-screen cinema, indoor go-carts, high-tech bowling and much more.

Madrid Xanadu’s first phase covers approximately 1.4 million square feet, while the completion of the center’s second phase will increase that number to a total of approximately 2.0 million square feet, making it Europe’s largest shopping and leisure destination. Madrid Xanadu is a joint venture of The Mills Corporation and Parcelatoria de Gonzalo Chacon S.A. (PGC).

Mills and PGC shared the vision of combining a snow facility with high-end retail and unique leisure and dining venues in an architecturally stunning design. PGC went on to develop the indoor ski concept now known as the Parque de Nieve Madrid Xanadu and oversees day-to-day operations of the snow park as the managing partner.

ECONOMIC HIGHLIGHTS: In its construction phase, Madrid Xanadu generated an average of 4,000 jobs.

During operation, the center and its satellite retailers will provide a minimum of 4,000 full- and part-time jobs.

It is estimated that approximately 25 million visitors will visit Madrid Xanadu during its first full year of operation.

RETAIL OFFERINGS:

Major Retail Anchors Include:

– Hipercor and Tiendas El Corte Ingles

– Forum

– H&M

– C&A

– Zara

– Mango

– Nike

– San Luis

– Area Real Madrid

Fashion Specialty Retailers Include:

– Billabong

– Blunauta

– Lacoste

– Pepe Jeans

– Purificacion Garcia

– Skechers

– Tommy Hilfiger

Retailers to have all concepts for the first time in one shopping center includes:

– Inditex (Spain). Including Zara, Bershka, Stradivarius, Pull & Bear, Massimo Dutti, Oysho, Often and the new concept, Zara Home.

– Arcadia Group (UK). Including Top Man, Top Shop, Evans, Miss Selfridge, Dorothy Perkins and Wallis.

ENTERTAINMENT OFFERINGS:

– Cinesa – a 15-screen movie theater.

– Formula 0 – an indoor go-cart race track opening for the first time in a shopping center.

– Chiqui Park – an expanded version of the well-known Chiqui Park for children that will include softplay and educational areas, a Pizza Jardin restaurant and child drop-off services.

– Tazz – an exciting bowling, billiards and nightclub concept from Argentina.

– Bulebar – a multi-entertainment complex with restaurants, bars and nightclub.

– Neverland – an indoor theme park for children from Argentina.

– Parque de Nieve Madrid Xanadu (the Snow Park) – The largest indoor snow sports facility in Europe, and the second largest in the world. Offering a year-round alpine experience, the snow park features varying slopes to appeal to skiers of different skill levels. Unlike typical outdoor ski slopes that close before sunset, Parque de Nieve Madrid Xanadu remains open late into the night. It promises ski enthusiasts perfect ski conditions all year round, with real, high-quality snow and consistently cold temperatures.

LOCATION: Located in Arroyomolinos, in the southwest region of Madrid, Madrid Xanadu is in one of the fastest-growing areas of Spain. The center is conveniently located 20 minutes drive time from the center of Spain’s capital and 40 minutes from the Madrid Barajas International Airport and is easily seen from the N-V highway.

Madrid Xanadu offers 7,500 free parking spaces at surface level, plus an additional 500 under the hypermarket for the convenience of the 4.2 million potential visitors that live within 20 minutes of the center.

The center’s impressive landscaping boasts more than 2,400 trees and Mediterranean flora, along with a large lake featuring a 250-foot-long bridge.

OWNERSHIP: Madrid Xanadu is 66.7% owned by The Mills Corporation and 33.3% by Parcelatoria de Gonzalo Chacon S.A. (PGC). Parque de Nieve Madrid Xanadu is 33.3% owned by The Mills Corporation and 66.7% by PGC. A 193-million-Euro floating rate construction loan with a three year term and two one year extensions for Madrid Xanadu was provided by HypoVereinsbank’s Madrid Office.

THE MILLS CORPORATION: The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Va., that owns, develops, leases, manages and markets a portfolio of 21 retail and entertainment destinations totaling approximately 26 million square feet. Currently, the company has seven projects under construction and/or development around the world. The company’s Internet address is www.millscorp.com.

PARQUE DE NIEVE S.L: Parque de Nieve Madrid S.L. is the company in charged of the management of Parque de Nieve Madrid Xanadu. It is owned primarily by Parcelatoria de Gonzalo de Gonzalo Chacon (PGC), a Spanish real estate developer founded in 1946 and initial owner of the 95 Ha lands, where Madrid Xanadu is located. PGC has been responsible for the urban planning and for obtaining all the necessary licenses for the global project. Parque de Nieve Madrid S.L., developed all the initial studies and surveys related to the project and subsequently organized and obtained all necessary licenses and urban planning requirements. In addition, PGC has also researched other indoor snow facilities in EurOFFERINGS:

Major Retail Anchors Include:

– Hipercor and Tiendas El Corte Ingles

– Forum

– H&M

– C&A

– Zara

– Mango

– Nike

– San Luis

– Area Real Madrid

Fashion Specialty Retailers Include:

– Billabong

– Blunauta

– Lacoste

– Pepe Jeans

– Purificacion Garcia

– Skechers

– Tommy Hilfiger

Retailers to have all concepts for the first time in one shopping center includes:

– Inditex (Spain). Including Zara, Bershka, Stradivarius, Pull & Bear, Massimo Dutti, Oysho, Often and the new concept, Zara Home.

– Arcadia Group (UK). Including Top Man, Top Shop, Evans, Miss Selfridge, Dorothy Perkins and Wallis.

ENTERTAINMENT OFFERINGS:

– Cinesa – a 15-screen movie theater.

– Formula 0 – an indoor go-cart race track opening for the first time in a shopping center.

– Chiqui Park – an expanded version of the well-known Chiqui Park for children that will include softplay and educational areas, a Pizza Jardin restaurant and child drop-off services.

– Tazz – an exciting bowling, billiards and nightclub concept from Argentina.

– Bulebar – a multi-entertainment complex with restaurants, bars and nightclub.

– Neverland – an indoor theme park for children from Argentina.

– Parque de Nieve Madrid Xanadu (the Snow Park) – The largest indoor snow sports facility in Europe, and the second largest in the world. Offering a year-round alpine experience, the snow park features varying slopes to appeal to skiers of different skill levels. Unlike typical outdoor ski slopes that close before sunset, Parque de Nieve Madrid Xanadu remains open late into the night. It promises ski enthusiasts perfect ski conditions all year round, with real, high-quality snow and consistently cold temperatures.

LOCATION: Located in Arroyomolinos, in the southwest region of Madrid, Madrid Xanadu is in one of the fastest-growing areas of Spain. The center is conveniently located 20 minutes drive time from the center of Spain’s capital and 40 minutes from the Madrid Barajas International Airport and is easily seen from the N-V highway.

Madrid Xanadu offers 7,500 free parking spaces at surface level, plus an additional 500 under the hypermarket for the convenience of the 4.2 million potential visitors that live within 20 minutes of the center.

The center’s impressive landscaping boasts more than 2,400 trees and Mediterranean flora, along with a large lake featuring a 250-foot-long bridge.

OWNERSHIP: Madrid Xanadu is 66.7% owned by The Mills Corporation and 33.3% by Parcelatoria de Gonzalo Chacon S.A. (PGC). Parque de Nieve Madrid Xanadu is 33.3% owned by The Mills Corporation and 66.7% by PGC. A 193-million-Euro floating rate construction loan with a three year term and two one year extensions for Madrid Xanadu was provided by HypoVereinsbank’s Madrid Office.

THE MILLS CORPORATION: The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Va., that owns, develops, leases, manages and markets a portfolio of 21 retail and entertainment destinations totaling approximately 26 million square feet. Currently, the company has seven projects under construction and/or development around the world. The company’s Internet address is www.millscorp.com.

PARQUE DE NIEVE S.L: Parque de Nieve Madrid S.L. is the company in charged of the management of Parque de Nieve Madrid Xanadu. It is owned primarily by Parcelatoria de Gonzalo de Gonzalo Chacon (PGC), a Spanish real estate developer founded in 1946 and initial owner of the 95 Ha lands, where Madrid Xanadu is located. PGC has been responsible for the urban planning and for obtaining all the necessary licenses for the global project. Parque de Nieve Madrid S.L., developed all the initial studies and surveys related to the project and subsequently organized and obtained all necessary licenses and urban planning requirements. In addition, PGC has also researched other indoor snow facilities in Europe and Japan, as well as obtained the technology and the patented licenses to produce snow from Acer Snowmec. The company’s Internet address is www.parquedenievemadrid.es Europe and Japan, as well as obtained the technology and the patented licenses to produce snow from Acer Snowmec. The company’s Internet address is www.parquedenievemadrid.es