The Mills Corporation Reports Third Quarter Results

Comparable Net Operating Income (NOI) and Operating Income
-- For the three months ended September 30, 2005, the Company
reported comparable property NOI of $104.7 million. This is
5.2% lower than the year earlier period comparable property
NOI of $110.4 million. Among other factors, third quarter
comparable property NOI was negatively impacted by a higher
allowance for doubtful accounts, a decline in straight-line
rents and FAS 141 income, and a decline in net recoveries.

-- The third quarter 2005 results include a higher allowance
for doubtful accounts resulting in higher bad debt
expense, which reduced NOI at comparable properties by
$4.1 million. The increase in the allowance for doubtful
accounts is largely attributable to two factors: 1) a
straight-line rent receivable write-off of $3.1 million
related to the assumption and modification of leases of
three skate parks by a new operator; two skate park leases
at non-comparable properties were also assumed and
modified; and 2) an increase in bad debt reserves due to
changes in the estimated collectability of certain
accounts receivable.

-- Straight-line rents at comparable properties decreased by
$0.7 million due to adjustments made to the receivable
balance. In total straight-line rents and FAS 141 income
declined by $2.4 million for the quarter ended September
30, 2005 versus the prior year period.

-- Net recoveries decreased by $1.9 million for the quarter
ended September 30, 2005 versus the same period a year
earlier. Net recoveries are the difference between expense
recoveries received from tenants and actual expenses. The
decrease in net recoveries was primarily due to revising
the estimated 2004 year end recovery income as the actual
billings were completed.

-- For the nine months ended September 30, 2005, comparable
property NOI decreased 1.3% to $325.9 million versus $330.2
million in the prior year period. This decrease was the result
of the same factors that led to the decline in comparable
property NOI in the third quarter of 2005 as well as a $3.8
million decline in lease cancellation fees.

-- For the three months ended September 30, 2005, Operating
Income, which includes both comparable and non-comparable
consolidated properties and is further explained in our
reconciliation tables, decreased 46.6% to $31.6 million from
$59.2 million in the same period a year ago. This decrease was
due to the same factors that caused the decline in comparable
property NOI as well as an increase in depreciation and
amortization and an increase in general and administrative
expense.

-- For the nine months ended September 30, 2005, Operating Income
decreased 12.0% to $123.8 million from $140.7 million in the
same period a year ago. This decrease was due to an increase
in depreciation and amortization and general and
administrative expenses partially offset by income from
recently acquired and opened centers.

Funds From Operations (FFO)
-- FFO per diluted share for the quarter ended September 30, 2005
decreased 53.6% to $0.45 from $0.97 in the same period a year
ago. The decrease in FFO per diluted share was due to several
items, including:

-- A decline in straight-line rents and FAS 141 income at
comparable and non-comparable properties, which reduced
FFO by $0.03 per diluted share in the third quarter of
2005 versus the year earlier period.

-- An increase in the allowance for doubtful accounts at
comparable and non-comparable properties, which negatively
impacted FFO by $0.10 per diluted share in the quarter.

-- Net recoveries in the third quarter of 2005 were unchanged
from the third quarter of last year as a net increase in
recoveries from recently acquired properties was offset by
a decline in net recoveries at properties owned during
both periods. The decrease in net recoveries due to the
revised estimate discussed above at properties owned in
both periods, negatively impacted FFO in the third quarter
of 2005 by $0.03 per diluted share versus the prior year
period. This decrease was not anticipated by the Company.

-- An increase in project write-off costs to $0.15 per
diluted share versus $0.05 per diluted share in the year
earlier period. Almost all of the write-offs in the third
quarter of 2005 were related to two projects that
management concluded were no longer probable to be
successfully completed. One of the projects was in Tampa,
Florida and the other was in Florence, Italy. The Company
did not anticipate any third quarter project write-offs.

-- An allowance against notes receivable from a tenant due to
the Company's judgment that the notes will not likely be
collected. This allowance reduced FFO per diluted share by
$0.07 in the third quarter of 2005.

-- A charge in connection with property damage and rental
income loss at the Esplanade Mall in New Orleans related
to Hurricane Katrina. This charge reduced FFO by
approximately $0.01 per diluted share in the quarter. The
Company expects to recover half of that amount upon
settlement of its claim under business interruption
insurance. The recovery will be recorded as income when
the insurance claim is settled.

-- The Company had expected to recognize additional fee
income in the third quarter. The Company still collected
the anticipated amount of cash for providing its
development and leasing services during the quarter,
although it recognized approximately $0.08 per diluted
share less in FFO than it had originally anticipated in
the third quarter.

-- FFO per diluted share for the nine months ended September 30,
2005 decreased 15% to $2.38 versus $2.81 for the nine months
ended September 30, 2004. The items that contributed to the
third quarter variance, as well as lower lease cancellation
fees, explain the majority of the FFO per diluted share
decline for the nine months ended September 30, 2005.

Net Income
-- For the quarter ended September 30, 2005, the Company reported
a loss of $0.61 per diluted share as compared to net income of
$0.95 per diluted share for the same period a year ago. This
decrease was due to the same factors that explain the
year-over-year negative FFO variance and a $0.61 per diluted
share decline in gains from the sale of joint- venture
interests.

-- For the nine months ended September 30, 2005, the Company
reported a loss of $0.98 per diluted share as compared to net
income of $2.78 per diluted share for the nine months ended
September 30, 2004. This decline in earnings was primarily due
to three items. First, results for the first nine months of
2004 include gains on the sales of joint venture interests of
$1.30 per diluted share. There were no gains on the sale of
joint-venture interests for the nine months ended September
30, 2005. Second, during the nine months ended September 30,
2004, the Company recorded $0.79 per diluted share in earnings
due to the one-time benefit from the cumulative effect of
adopting FIN 46. Third, for the nine months ended September
30, 2005, the Company had foreign currency exchange losses of
$0.42 per diluted share versus a loss of $0.04 per diluted
share in the year earlier period. The gain on the sale of
joint venture interests, the benefit of adopting FIN 46 and
foreign currency exchange losses are all excluded from FFO.

Outlook

The Company expects net income to be within a range of $0.46 and$0.56 per diluted share for the year ending December 31, 2005. TheCompany had previously established FFO guidance of $4.35 per dilutedshare. Based primarily on the events described in this press release,the Company's revised guidance for the year is $3.55 to $3.65 perdiluted share.

Operating Statistics

Operating statistics for our portfolio were as follows:
-- For the twelve months ended September 30, 2005, gross in-line
tenant reported sales per square foot for the entire portfolio
increased 9.8% to $382 from $348 in the year earlier period.

-- For the twelve months ended September 30, 2005, gross in-line
tenant reported sales per square foot for comparable centers
increased 5.1% from the twelve months ended September 30,
2004.

-- For the nine months ended September 30, 2005, comparable
same-space reported sales for in-line tenants increased 3.2%
versus the same period last year.

-- The average initial base rent for in-line store spaces opened
during the first nine months of 2005 was $34.63 per square
foot, which was 13.6% higher than rents for tenants who closed
or whose leases expired.

-- Comparable property occupancy was 95.5% on September 30, 2005
versus 94.6% on September 30, 2004. Total portfolio occupancy
as of September 30, 2005 was 92.6% versus 92.9% as of
September 30, 2004.

FFO and NOI are non-GAAP financial measures that are standardmeasures of operating performance for REITs. A reconciliation of netincome from continuing operations to FFO is provided in thesupplemental financial data section of this press release. Net incomefrom continuing operations is the most directly comparable GAAP numberto FFO. A reconciliation of operating income to NOI is provided in thesupplemental financial data section of this press release. Operatingincome, a component of net income from continuing operations, is themost directly comparable GAAP number to NOI.

The following table provides the reconciliation of estimateddiluted net income per share to diluted FFO per share.
Low High
Estimated diluted net income from
continuing operations per share $0.46 $0.56
------------ -------------

Depreciation and amortization 3.83 3.83
------------ -------------

Equity in depreciation and amortization 0.83 083
------------ -------------

Partners' share of depreciation and
amortization from consolidated joint
ventures (0.76) (0.76)
------------ -------------

Foreign currency exchange losses 0.26 0.26
------------ -------------

Preferred unit distributions (1.07) (1.07)
------------ -------------

------------ -------------
Estimated diluted FFO per common share $3.55 $3.65
============ =============

About The Mills Corporation

The Mills Corporation, based in Arlington, Virginia, is adeveloper, owner and manager of a global real estate portfolioincluding regional shopping malls, retail and entertainment centers,and international recreation, leisure and retail centers. The Millsportfolio currently includes 42 properties in the U.S., Canada andEurope, totaling approximately 51 million square feet of grossleasable area. In addition, The Mills is currently developing,re-developing or constructing various projects around the world. Itsportfolio of real estate properties generated more than $8.7 billionin reported retail sales in 2004. The Mills is traded on the New YorkStock Exchange under the ticker: MLS. For more information, visit thecompany's website at www.themills.com.

Supplemental Materials

SEC Filings (including Forms 10-Q, 10-K and 8-K) and supplementalinformation packages are available at www.themills.com or may berequested by contacting Noam Saxonhouse, Investor Relations, The MillsCorporation, 1300 Wilson Blvd., Arlington, VA 22209 or via e-mail atNoam.Saxonhouse@themills.com. The third quarter 2005 supplementalinformation package will be available at www.themills.com at 7:00 a.m.on November 9, 2005.

The Company will provide an online simulcast of its third quarter2005 conference call at www.themills.com. To listen to the live call,please go to the website at least fifteen minutes prior to the call toregister, download and install any necessary audio software. The callwill begin at 11:00 a.m. ET Wednesday, November 9, 2005. An onlinereplay will be available for approximately 90 days atwww.themills.com.

The Company has placed a video on its website that providesinformation on the parking facilities at Meadowlands Xanadu and theassociated revenues. This video maybe viewed by going to the audiopresentation portion of the investor relations section of theCompany's website at www.themills.com.

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 and The Mills LimitedPartnership believe the expectations reflected in any forward-lookingstatements are based on reasonable assumptions, they can give noassurance that their expectations will be attained and it is possiblethat their actual results may differ materially from those indicatedby these forward-looking statements due to a variety of risks anduncertainties. The words "will," "plan," "believe," "expect,""anticipate," "should," "target," "intend," and similar expressionsidentify forward-looking statements. The Mills Corporation and TheMills Limited Partnership undertake no obligation to publicly updateor revise any forward-looking statements, whether as a result of newinformation, future events or otherwise. The reader is directed to TheMills Corporation's and The Mills Limited Partnership's variousfilings with the Securities and Exchange Commission, includingquarterly reports on Form 10-Q, reports on Form 8-K, report on Form 10and annual report on Form 10-K for a discussion of such risks anduncertainties.

Definitions and Reconciliations

The following non-GAAP financial measures and other terms, as usedwithin the text of this release, are defined, reconciled and furtherexplained below and in our Form 8-K Supplemental information packageon Attachment 1 to Exhibit 99.2.
-- Funds from Operations (FFO)

-- Net Operating Income (NOI)

-- Comparable properties

-- Operating Income



THE MILLS CORPORATION
THE MILLS LIMITED PARTNERSHIP
SUPPLEMENTAL FINANCIAL DATA
(Unaudited, in millions, except per share and unit data)

Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
-------- ---------- -------- ----------
(Restated) (Restated)
Revenues:
Minimum rent $ 118.2 $ 119.4 $ 342.8 $ 294.1
Percentage rent 1.3 1.5 2.5 3.2
Recoveries from tenants 55.6 52.6 162.4 137.7
Other property revenue 10.4 9.9 28.5 28.2
Management fees 2.6 0.6 9.3 5.0
Other fee income 0.7 1.3 4.1 2.4
-------- ---------- -------- ----------
Total operating revenues 188.8 185.3 549.6 470.6
-------- ---------- -------- ----------
Expenses:
Recoverable from tenants 58.0 50.8 163.1 129.3
Other operating expenses 14.9 8.0 28.8 17.7
General and administrative 13.9 8.9 38.7 26.1
Cost of fee income 5.7 3.1 16.3 19.7
Depreciation and amortization 64.7 55.3 178.9 137.1
-------- ---------- -------- ----------
Total operating expenses 157.2 126.1 425.8 329.9
-------- ---------- -------- ----------
Operating income 31.6 59.2 123.8 140.7
Other income (expense):
Interest expense, net (50.9) (41.1) (142.1) (105.8)
Equity in (losses) earnings of
unconsolidated joint ventures (2.1) (0.1) (2.2) 4.6
Minority interest in
consolidated joint ventures:
Minority interest in losses
(earnings) 6.3 (1.8) (5.3) (4.2)
Attribution to Mills of the
elimination of interest
and fees* 7.7 13.1 29.3 39.1
Foreign currency exchange
(losses) gains (0.2) 4.9 (26.9) (2.5)
Abandoned project costs (9.7) (3.2) (11.0) (5.2)
Other, net 2.7 2.8 22.4 8.4
-------- ---------- -------- ----------
(Loss) income before gains on
sales of joint venture
interests and
minority interest in Mills LP (20.0) 33.8 (12.0) 75.1
Gains on sales of joint venture
interests -- 39.6 -- 84.0
-------- ---------- -------- ----------
(Loss) income from continuing
operations (20.0) 73.4 (12.0) 159.1
Cumulative effect of FIN 46
adoption -- -- -- 51.4
-------- ---------- -------- ----------
Mills LP net (loss) income (20.0) 73.4 (12.0) 210.5
Minority interest in Mills LP:
Continuing operations,
including Series D preferred
unit distributions 4.9 (11.1) 7.8 (23.3)
Cumulative effect of FIN 46
adoption -- -- -- (9.3)
-------- ---------- -------- ----------
TMC net (loss) income (15.1) 62.3 (4.2) 177.9
Preferred stock dividends (18.9) (11.3) (50.5) (29.4)
-------- ---------- -------- ----------
(Loss) income available to TMC
common stockholders (34.0) 51.0 (54.7) 148.5
Minority interest reflected as
common equity in Mills LP (5.1) 10.8 (8.5) 31.9
-------- ---------- -------- ----------
(Loss) income available to
Mills LP common unit holders $ (39.1) $ 61.8 $ (63.2) $ 180.4
======== ========== ======== ==========

(Loss) Earnings per Common
Share and Unit - Diluted:
Continuing operations $ (0.61) $ 0.95 $ (0.98) $ 1.99
Cumulative effect of FIN 46
adoption -- -- -- 0.79
-------- ---------- -------- ----------
(Loss) earnings per common
share and unit $ (0.61) $ 0.95 $ (0.98) $ 2.78
======== ========== ======== ==========

Shares and Units Outstanding (in thousands) for computation of (loss)
earnings per share and unit - diluted:
Weighted average common shares 56,226 55,120 55,813 53,458
======== ========== ======== ==========
Weighted average common units 64,678 65,150 64,511 64,729
======== ========== ======== ==========

* Includes management and other operating fees of $1.1 million,
$1.4 million, $3.1 million and $2.8 million for the three and nine
months ended September 30, 2005 and 2004, respectively.


THE MILLS CORPORATION
THE MILLS LIMITED PARTNERSHIP
SUPPLEMENTAL FINANCIAL DATA (Continued)
(Unaudited, dollars in millions, except per share and unit data)

Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
-------- ---------- -------- ----------
(Restated) (Restated)
Mills LP Funds From Operations
("FFO"):
Mills LP (loss) income from
continuing operations $ (20.0) $ 73.4 $ (12.0) $ 159.1
Add (deduct) consolidated
items:
Depreciation and amortization* 67.6 55.7 188.5 138.2
Foreign currency exchange
losses (gains) 0.2 (4.9) 26.9 2.5
Gains on sales of joint
venture interests -- (39.6) -- (84.0)
Deduct partners' share of
depreciation and amortization
from consolidated joint
ventures (13.5) (12.8) (37.4) (29.0)
Add our share of depreciation
and amortization from
unconsolidated joint ventures 14.3 3.3 41.0 25.0
-------- ---------- -------- ----------
FFO 48.6 75.1 207.0 211.8
Less preferred unit
distributions (19.1) (11.6) (51.2) (30.1)
-------- ---------- -------- ----------
FFO available to Mills LP
common unit holders $ 29.5 $ 63.5 $ 155.8 $ 181.7
======== ========== ======== ==========
Mills LP FFO per Common Unit
(Diluted):
Mills LP (loss) income from
continuing operations $ (0.30) $ 1.14 $ (0.19) $ 2.47
Add (deduct) consolidated
items:
Depreciation and amortization 1.03 0.85 2.88 2.13
Foreign currency exchange
losses (gains) -- (0.08) 0.41 0.04
Gains on sales of joint
venture interests -- (0.61) -- (1.30)
Deduct partners' share of
depreciation and amortization
from consolidated joint
ventures (0.21) (0.20) (0.57) (0.45)
Add our share of depreciation
and amortization from
unconsolidated joint ventures 0.22 0.05 0.63 0.39
Less preferred unit
distributions (0.29) (0.18) (0.78) (0.47)
-------- ---------- -------- ----------
Mills LP FFO per common unit
(diluted) $ 0.45 $ 0.97 $ 2.38 $ 2.81
======== ========== ======== ==========

Weighted average units
outstanding (in thousands) for
computation of Mills LP FFO
per common unit (diluted) 65,561 65,150 65,338 64,729
======== ========== ======== ==========



Non- Unconsolidated
Comparable comparable Total Joint Ventures
---------- ---------- ---------- ------------------
2005:
-----------------
Minimum rent $ 102.8 $ 80.6 $ 183.4 $ (65.2)
Other revenue 58.8 53.1 112.0 (44.7)
--------------------------------- ------------------
Property
revenue 161.6 133.8 295.4 (109.9)

Property
operating
costs 56.9 52.9 109.8 (36.0)
--------------------------------- ------------------
Net operating
income $ 104.7 $ 80.9 185.6 (73.9)
======================
Depreciation (93.2) 28.5
General and
administrative (13.9) --
Cost of fees (5.7) --
Fee income 3.3 --
Fee elimination (2.2) 3.1
----------- ------------------
Operating income $ 73.9 $ (42.3)
=========== ==================


Eliminations Consolidated
-------------- ----------------
2005:
-----------------
Minimum rent $ -- $ 118.2
Other revenue -- 67.3
-------------- ----------------
Property
revenue -- 185.5
Property
operating
costs (0.9) 72.9
-------------- ----------------
Net operating
income 0.9 112.6
Depreciation -- (64.7)
General and
administrative -- (13.9)
Cost of fees -- (5.7)
Fee income -- 3.3
Fee elimination (0.9) --
-------------- ----------------
Operating income $ -- $ 31.6
============== ================

Non- Unconsolidated
Comparable comparable Total Joint Ventures
---------- ---------- ---------- -----------------
2004 (restated):
-----------------
Minimum rent $ 104.0 $ 30.2 $ 134.2 $ (14.3)
Other revenue 56.5 17.3 73.8 (9.8)
--------------------------------- ------------------
Property
revenue 160.5 47.5 208.0 (24.1)
Property
operating
costs 50.1 16.3 66.4 (7.6)
--------------------------------- ------------------
Net operating
income $ 110.4 $ 31.2 141.6 (16.5)
======================
Depreciation (60.9) 5.6
General and
administrative (8.9) --
Cost of fees (3.1) --
Fee income 1.9 --
Fee elimination 1.0 0.5
----------- ------------------
Operating income $ 69.6 $ (10.4)
=========== ==================


Eliminations Consolidated
------------- -----------------
2004 (restated):
-----------------
Minimum rent $ (0.5) $ 119.4
Other revenue -- 64.0
------------- -----------------
Property
revenue (0.5) 183.4
Property
operating costs -- 58.8
------------- -----------------
Net operating
income (0.5) 124.6
Depreciation -- (55.3)
General and
administrative -- (8.9)
Cost of fees -- (3.1)
Fee income -- 1.9
Fee elimination 0.5 --
------------- -----------------
Operating income $ -- $ 59.2
============= =================

Non- Unconsolidated
Comparable comparable Total Joint Ventures
---------- ---------- ---------- ------------------
2005:
-----------------
Minimum rent $ 309.8 $ 227.2 $ 537.0 $ (192.0)
Other revenue 175.8 141.5 317.3 (123.6)
--------------------------------- ------------------
Property
revenue 485.6 368.7 854.3 (315.6)
Property
operating
costs 159.7 128.8 288.5 (95.7)
--------------------------------- ------------------
Net operating
income $ 325.9 $ 239.9 565.8 (219.9)
======================
Depreciation (260.2) 81.3
General and
administrative (38.7) --
Cost of fees (16.3) --
Fee income 13.4 --
Fee elimination (12.7) 11.1
----------- ------------------
Operating income $ 251.3 $ (127.5)
=========== ==================


Eliminations Consolidated
-------------- ----------------
2005:
-----------------
Minimum rent $ (2.2) $ 342.8
Other revenue (0.3) 193.4
-------------- ----------------
Property
revenue (2.5) 536.2
Property
operating
costs (0.9) 191.9
-------------- ----------------
Net operating
income (1.6) 344.3
Depreciation -- (178.9)
General and
administrative -- (38.7)
Cost of fees -- (16.3)
Fee income -- 13.4
Fee elimination 1.6 --
-------------- ----------------
Operating income $ -- $ 123.8
============== ================

Non- Unconsolidated
Comparable comparable Total Joint Ventures
------------- -------------- -------- --------------
2004 (restated):
-----------------
Minimum rent $ 301.8 $ 88.4 $ 390.2 $ (95.6)
Other revenue 178.8 50.7 229.5 (60.4)
------------- -------------- -------- --------------
Property
revenue 480.1 139.1 619.7 (156.0)
Property
operating
costs 150.6 43.8 194.2 (46.7)
------------- -------------- -------- --------------
Net operating
income $ 330.2 $ 95.3 425.5 (109.3)
============= ==============
Depreciation (181.5) 44.4
General and
administrative (26.1) --
Cost of fees (19.7) --
Fee income 7.4 --
Fee elimination (5.8) 5.8
-------- --------------
Operating income $ 199.8 $ (59.1)
======== ==============


Eliminations Consolidated
---------------- --------------
2004 (restated):
-----------------
Minimum rent $ (0.5) $ 294.1
Other revenue -- 169.1
---------------- --------------
Property
revenue (0.5) 463.2
Property
operating
costs (0.5) 147.0
---------------- --------------
Net operating
income -- 316.2
Depreciation -- (137.1)
General and
administrative -- (26.1)
Cost of fees -- (19.7)
Fee income -- 7.4
Fee elimination -- --
---------------- --------------
Operating income $ -- $ 140.7
================ ==============