Groundbreaking Ceremony Held for Jersey Shore Premium Outlets(R)

Simon’s Chelsea Division to Open Upscale Outlet Center in Fall 2008

TINTON FALLS, N.J., Oct. 11 /PRNewswire-FirstCall/ — Simon Property Group, Inc. (NYSE: SPG) announced that its Chelsea Property Group subsidiary held a groundbreaking ceremony this morning for its newest development project, Jersey Shore Premium Outlets(R). The 435,000 square-foot outlet center will offer an upscale outlet shopping experience for area residents and visitors.

Officials from Roseland, NJ-based Chelsea Property Group attended the ceremony for the upscale, fashion-oriented manufacturers’ outlet center located directly off the Garden State Parkway at exit 100A on Route 66 East in Tinton Falls, NJ. Chelsea is the leader in the outlet industry based on its proven concept of Premium Outlet Shopping(R). The center will be a single-level, village-style project and will be the company’s third Premium Outlet Center in New Jersey joining Liberty Village Premium Outlets in Flemington and Jackson Premium Outlets.

Jersey Shore Premium Outlets will house 120 outlet stores and will feature high-quality designer and name brands serving the New Jersey Shore region (Monmouth and Ocean counties) as well as those who will be driving past the center en route to other parts of the state.

“Today we celebrate a very important step by bringing our trademarked concept of Premium Outlet Shopping to the New Jersey Shore,” remarked John R. Klein, co-president of Chelsea. “We wish to thank all those in our community who have supported us in our efforts to make this vision a reality in our home state. The center will have an excellent mix of upscale and high quality merchants that will serve the region’s residents and visitors.”

Jersey Shore Premium Outlets, scheduled to open fall 2008, will create approximately 800 to 1,000 quality jobs and is projected to generate an estimated $170 million in retail sales and $1.2 million in annual property tax revenues.

Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers(R), The Mills(R), community/lifestyle centers and international properties. It currently owns or has an interest in 378 properties comprising 257 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG. For further information, visit the Company’s website at www.simon.com.

SOURCE Simon Property Group, Inc.

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