The Mills Corporation Breaks Ground on 108 N. State Street Project; Mayor Daley, CBS 2 Chicago and Chicago Transit Authority Join The Mills in Celebrating Major Project Milestone

The complex will feature retail, entertainment and diningofferings; a state-of-the-art CTA transit station providing service toand from Chicago's O'Hare and Midway airports; office space; a luxuryhotel and residential units.

"This is a great day for all the residents of the city of Chicago.We're beginning construction of a one-of-a-kind retail, residential,entertainment and transportation center that will make downtownChicago even more attractive and enjoyable than it is today. And thisnew project isn't just about downtown. It will benefit everyneighborhood, by providing 2,700 jobs for the hard-working people ofour city - on top of hundreds of construction jobs," said MayorRichard M. Daley.

"By entering the construction phase of this project, The Mills hasaccomplished what no other developer has been able to achieve withthis site," said Laurence C. Siegel, chairman and chief executiveofficer of The Mills Corporation. "We look forward to transformingthis high profile, long-vacant land parcel into a vibrant newdestination that will create tremendous value for our investors, theCity of Chicago and visitors to 108 North State Street and the Loop."

To date, The Mills has received commitments from several retailtenants for 108 N. State Street, including CBS 2 Chicago BroadcastCenter, Boggi Milano, Sisley, Andrew's Ties, Banana Republic, RosaMexicano, David Barton Gym and new concepts by Steve Lombardo, creatorof Gibsons Steakhouse and Hugo's Frog Bar, and Steven Foster, creatorof Lucky Strike Lanes in Hollywood. In addition, a CTA transit stationwill also be a part of 108 North State Street.

As part of the groundbreaking ceremony, The Mills also unveiledthe latest architectural designs of the project. The designs featuretransparent corners of the project's facade that will pull visitorsinto the space, and each corner will feature a different component tosurprise and delight visitors, whether with the CBS studio,restaurants, or dynamic retail options. Crystal-clear street-levelglass panes will create a seamless experience between the building'sinterior and exterior.

The Mills has assembled a team of world-class architecturaldesigners and artists for the design of 108 N. State Street. The teamincludes: Gensler, Perkins + Will, Rockwell Group and James Carpenter,an artist known for developing new and emerging glass and materialtechnologies.

"I'm excited for the city and for what this project and our newBroadcast Center will mean for this block," said Joe Ahern, Presidentand General Manager of CBS 2 Chicago. "And, I'm even more excited forour viewers who will experience something fresh and dynamic each daywhen they turn to CBS 2."

"Today's groundbreaking is significant for the CTA both for thestate-of-the-art transit station that will provide convenient airportservice for our customers, but also for the partnership with the Cityof Chicago and The Mills that made it possible to leverage ourresources for an extraordinarily important infrastructure improvementthat provides a critical rail link for our entire system," said FrankKruesi, president of Chicago Transit Authority.

The Mills completed the purchase of the land parcel at 108 NorthState Street from the City of Chicago on November 11. The CBS 2Chicago studio and office tower are expected to be completed by late2007, and the retail, dining and entertainment component is estimatedto be completed by Spring 2008.

About 108 North State Street

Located in the heart of the City of Chicago, 108 North StateStreet will be an urban mixed-use destination. The new Chicago iconwill feature approximately 400,000 square feet of gross building area(GBA) of retail, entertainment and dining offerings and astate-of-the-art CTA transit station providing service to and fromChicago's O'Hare and Midway airports; 200,000 to 450,000 square feetof office space; a 200- to 300-room hotel; a 200- to 300-unitresidential tower.

About The Mills Corporation

The Mills Corporation, based in Arlington, Virginia, is adeveloper, owner and manager of a diversified global portfolio ofretail destinations including regional shopping malls, market dominantretail and entertainment centers, and international retail and leisurecenters. It currently owns 42 properties in the U.S., Canada andEurope, totaling 51 million square feet. In addition, The Mills hasvarious projects in development, redevelopment or under constructionaround the world. Its portfolio of real estate properties generatedmore than $8.7 billion in retail sales in 2004. The Mills is traded onthe New York Stock Exchange under the ticker: MLS. For moreinformation, visit the company's website at www.themills.com.

Note to Editors: Design renderings of the project are available atwww.108northstatestreet.com. To download the photos, click on "Media."

Statements in this press release that are not historical may bedeemed forward-looking statements within the meaning of the federalsecurities laws. Although The Mills Corporation believes theexpectations reflected in any forward-looking statements are based onreasonable assumptions, the Company can give no assurance that itsexpectations will be attained and it is possible that our actualresults may differ materially from those indicated by theseforward-looking statements due to a variety of risks anduncertainties. The Mills Corporation undertakes no obligation topublicly update or revise any forward-looking statements, whether as aresult of new information, future events or otherwise. The reader isdirected to the Company's various filings with the Securities andExchange Commission, including quarterly reports on Form 10-Q, reportson Form 8-K and its annual reports on Form 10-K for a discussion ofsuch risks and uncertainties.