Simon Malls | More Choices®

WHITEHALL, Pa., Oct 25, 2006 (BUSINESS WIRE) -- Simon Property Group, Inc. (NYSE:SPG) and Pennsylvania Real Estate Investment Trust (NYSE:PEI) (PREIT) announced that construction has begun on an approximately 110,000 square foot lifestyle expansion of Lehigh Valley Mall in Whitehall, Pennsylvania (Allentown). The new addition is scheduled to open in August 2007. The redevelopment efforts will be managed by Kravco Simon Company, the property manager.

It was also announced today that a major renovation of the existing mall will take place and be finished at the same time.

Lehigh Valley Mall is a 1,040,000 square foot regional mall located in Whitehall, Pennsylvania at the intersection of U.S Route 22 and MacArthur Road and is currently anchored by JCPenney, Macy's and the recently-opened Boscov's and includes over 130 stores and services.

The new lifestyle expansion, which is expected to add approximately 20 new retail tenants and restaurants, will be located between JCPenney and Macy's on the MacArthur Road side of the property. The largest new store in the expansion will be Barnes & Noble (30,000 square feet).

An enviable list of small shop tenants are also coming to the lifestyle expansion at Lehigh Valley Mall. These include Williams Sonoma, Pottery Barn, Ann Taylor, Ann Taylor Loft, Sephora, Coach, White House/ Black Market, Sharper Image, Chico's, Soma, Coldwater Creek and Piazza Di Giorgio.

Shoppers will notice a number of improvements as the renovation takes place including new lighting, new elevators and escalators and remodeled restrooms and mall entrances.

A new 30,000 square foot Barnes & Noble will be one of the highlights of the new retail offerings. Barnes & Noble pioneered the concept of the book superstore, combining vast inventory selection in books, music, DVD and magazines with comfortable ambiance. Barnes & Noble's cafes and local marketing programs have made its bookstores anchors in their communities and great places to spend leisure time.

"The whole community is really going to enjoy the new lifestyle addition to the mall," said Mark Gray vice president of development at Simon. "This project will give Lehigh Valley Mall a fresh new look and feel," Gray continued.

"This redevelopment will solidify the property's preeminent position in the market place," said Joseph F. Coradino, president of PREIT Services LLC and PREIT RUBIN Inc. "We strongly believe the changes to this mall will meet the needs of the growing Lehigh Valley Mall area and its affluent shopper base by delivering a better assortment of stores and more customer amenities."

Simon Property Group, Inc., an S&P 500 company headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet Centers(R) and community/lifestyle centers. The Company's current total market capitalization is approximately $46 billion. Through its subsidiary partnership, it currently owns or has an interest in 284 properties in the United States containing an aggregate of approximately 200 million square feet of gross leasable area in 38 states plus Puerto Rico. Simon also owns interests in 52 European shopping centers in France, Italy, and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico. Additional Simon Property Group information is available at www.simon.com. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG.

Kravco Simon Company (formerly Kravco Company) has been managing and developing commercial real estate, primarily regional shopping malls, for over 50 years. Headquartered in King of Prussia, Pennsylvania, Kravco Simon currently manages over 14 million square feet of commercial real estate located in Pennsylvania, New Jersey, Maine and Florida. For additional information about Kravco Simon Company and its managed properties, go to www.kravcosimon.com.

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers (approximately 34.4 million square feet) located in the Mid-Atlantic region or in the eastern United States. PREIT's portfolio currently consists of 51 properties in 13 states. PREIT's portfolio includes 39 shopping malls, 11 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.

SOURCE: Pennsylvania Real Estate Investment Trust and Simon Property Group, Inc.

Simon Property Group
Les Morris
317-263-7711
lmorris@simon.com
or
PREIT
Nurit Yaron
215-875-0735
yaronn@preit.com