Madrid, Spain (Saturday, May 17, 2003) - The Mills Corporation 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 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.

Outside the new Madrid Xanadú. (photo: Madrid Xanadú)

"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 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.

Aerial freestylers perform at the opening of Madrid Xanadú. (photo: Madrid Xanadú)

Madrid Xanadu is 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.