Simon Property Group Completes Prime Outlets Transaction

INDIANAPOLIS, Aug. 30 /PRNewswire-FirstCall/ — Simon Property Group, Inc.
(NYSE: SPG) (“Simon”) today announced that it has completed its transaction with
Prime Outlets Acquisition Company and certain of its affiliated entities
(“Prime”), and that, in connection with the transaction, Simon has signed a
proposed Consent Agreement with the Staff of the Federal Trade Commission
(“FTC”). The Consent Agreement will now be forwarded to the Commission for its
review and approval.

The Prime transaction adds 21 outlet center properties to Simon’s portfolio,
including Prime’s Barceloneta outlet center in Puerto Rico which Simon acquired
in May of this year. Simon previously announced that it had amended its
agreement so that the owners of Prime will retain Prime Outlets-Saint Augustine
as well as the Livermore and Grand Prairie development projects.

The completed transaction reflecting the amended agreement and including the
Barceloneta outlet center is valued at approximately $2.3 billion, including the
assumption of approximately $1.55 billion of Prime’s existing indebtedness and
preferred stock. Simon paid equity consideration to Prime’s owners, generally
comprised of 80% cash and 20% in SPG common operating partnership units.

David Simon, SPG Chairman and Chief Executive Officer, stated, “The Prime
Outlets portfolio is an excellent strategic fit and presents a compelling
opportunity for Simon to benefit from shoppers’ increased demand for discounted
brand-name merchandise. We believe that our strong track record of operational
excellence, financial resources, and history of successful acquisitions, make us
well positioned to improve the performance of these assets for the benefit of
tenants, retailers and consumers.”

Simon was advised in this transaction by UBS Investment Bank and J.P. Morgan
Securities Inc.

About Simon Property Group

Simon Property Group, Inc. is an S&P 500 company and the largest real estate
company in the U.S. The Company currently owns or has an interest in 393 retail
real estate properties comprising 263 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.

SOURCE Simon Property Group, Inc.