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CHATTANOOGA, TN-Underwriters of CBL & Associates’ recent offering have exercised their over-allotment option to purchase 400,000 depositary shares related to the company’s sale of 4.6 million depository shares, which raised $115 million to partially finance its $340-million acquisition of four regional shopping malls and to use for its general corporate purposes.

Each of the depository shares represent a 1/10th fractional interest of a share of 7.75% Series C Cumulative Redeemable Preferred Stock at $25.00 apiece. Bear, Stearns & Co. Inc. and Wachovia Securities acted as Joint Book-Running Managers and A.G. Edwards & Sons, Inc. acted as Co-Lead Manager. The co-managers were Legg Mason Wood Walker Inc., McDonald Investments Inc., RBC Capital Markets, J.J.B. Hilliard, W.L. Lyons Inc., Stifel Nicolaus & Company Inc. and Wells Fargo Securities, LLC.

The preferred stock underlying the depositary shares may be redeemed at par at the election of CBL on or after Aug. 22, 2008. The securities have no stated maturity, sinking fund or mandatory redemption and are not convertible into any other CBL securities.

In June, CBL entered into purchase agreements to acquire four regional shopping malls owned by affiliates of Faison Enterprises: the 1.05 million-sf Cross Creek Mall in Fayetteville, NC; the 784,775-sf River Ridge Mall in Lynchburg, VA; the 626,806-sf Southpark Mall in Colonial Heights, VA; and the 787.255-sf Valley View Mall in Roanoke, VA. The four malls comprise an aggregate of 3.25 million sf and as of April 1, 2003, had a weighted average occupancy rate of 90.3%. The $340-million purchase price included the assumption of approximately $170 million of non-recourse debt with an average annual fixed rate of interest of 7.71%.

The acquisitions will close over the next four months. The malls are expected to generate an initial yield of 8.56% based upon current income.

CBL last month reported a 13.5% increase in second quarter funds from operations to $67.4 million from $59.3 million in the second quarter of 2002. Net income increased 11.2% in the second quarter to $21 million from $18.9 million in the prior-year period. Revenue increased 11.7% in the second quarter to $165 million from $147.7 million in the prior-year period.

CBL’s share price rose $0.11 cents on Tuesday to close at $48.20. Last week, the company’s share price hit a 52-week high, trading at $48.87 on Monday, Aug. 18. The company’s 52-week low of $33.95 dates back to October 2002.

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