Outlet Centers and Simon Property Group Announce a Joint Venture to Develop a Tanger Outlet Center South of Houston, Texas

GREENSBORO, N.C. and INDIANAPOLIS, June 30, 2011 /PRNewswire/ — Tanger Factory
Outlet Centers, Inc., (NYSE: SKT) and Simon Property Group, Inc., (NYSE: SPG)
announced today that they have entered into a definitive 50/50 joint venture
agreement for the development, construction, leasing and management of a Tanger
Outlet Center south of Houston, Texas.

Tanger Outlets (Texas City, TX) will be located approximately 30 miles south of
Houston and 20 miles north of Galveston on the highly traveled Interstate 45
(100,000 vehicles per day), Exit 17 at Holland Road. Houston is currently the
fourth largest U.S. city, the largest in the state of Texas, and is a major
business, financial, science and technology center with a diverse economic base.
Galveston is a popular Gulf Coast getaway destination with 32 miles of beaches,
restaurants and top resort hotels, attracting over 5 million visitors each year.

When completed, the center will play host to over 90 brand name and designer
outlet stores in the first phase of approximately 350,000 square feet. The
center is on 55 acres with ample room for future expansion of approximately
120,000 square feet, for a total build out of approximately 470,000 square feet.
It is anticipated that the announcement of tenants and ground breaking
ceremonies will take place in July of 2011 with the Grand Opening taking place
approximately 12 months after the start of construction.

“We believe that Tanger and Simon will jointly develop a successful outlet
center on this highly visible location south of Houston,” stated David Simon,
Chairman and Chief Executive Officer of Simon Property Group, Inc.

Steven B. Tanger, President and Chief Executive Officer of Tanger Outlet
Centers, Inc., commented, “The opportunity to build a Tanger Outlet Center south
of Houston makes perfect sense. Our partnership with Simon will provide our
retail partners with what we believe is the best location and strongest
development. When built, we will offer residents and visitors to this region one
of the nation’s best brand name and designer outlet shopping centers with
today’s style and fashion trends at the best values every day.”

The joint venture will be co-owned by Tanger and Simon and will be branded as
Tanger Outlets. Simon will provide site development, construction supervision,
and asset management to the venture; Tanger will provide management services and
marketing to the joint venture. Both companies will provide leasing services.

It is anticipated that this high-quality outlet shopping center will generate
over 400 construction positions during the construction phase, and approximately
900 full-time and part-time jobs in the area when completed.

About Simon Property Group

Simon Property Group, Inc. is an S&P 500 company and the largest public real
estate company in the U.S. The Company currently owns or has an interest in 390
retail real estate properties comprising 262 million square feet of gross
leasable area in North America, Europe and Asia. Simon Property Group is
headquartered in Indianapolis, Indiana and employs more than 5,000 people
worldwide. The Company’s common stock is publicly traded on the NYSE under the
symbol SPG. For further information, visit the Simon Property Group website at
www.simon.com.

About Tanger Factory Outlet Centers, Inc.

Tanger Factory Outlet Centers, Inc., (NYSE:SKT) is a publicly-traded REIT
headquartered in Greensboro, North Carolina that operates and owns, or has
ownership interests in, a portfolio of 35 upscale outlet shopping centers in 23
states coast-to-coast, totaling approximately 10.7 million square feet, leased
to over 2,200 stores that are operated by more than 370 different brand name
companies. More than 160 million shoppers visit Tanger Outlet Centers annually.
For more information on Tanger Outlet Centers, call 1-800-4-TANGER or visit our
website at www.tangeroutlet.com.

Forward Looking Information

This news release contains forward-looking statements within the meaning of
federal securities laws. These statements include, but are not limited to, the
development and opening of a new center, the timing of expected ground breaking
and grand opening events, and management’s beliefs, plans, estimates,
intentions, and similar statements concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts. These forward-looking statements are subject to risks and uncertainties,
and therefore, actual results could differ materially from those projected. For
a more detailed discussion of the factors that affect the operating results of
Tanger and Simon, interested parties should review each respective company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2010. Those
factors include, but are not limited to, the risks associated with general
economic and local real estate conditions, the company’s ability to meet its
obligations on existing indebtedness or refinance existing indebtedness on
favorable terms, the availability and cost of capital, the company’s ability to
lease its properties or to meet its minimum pre-leasing hurdles on proposed new
developments, the company’s inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise, and competition.