Woodburn Company Stores Expansion Underway; New Outlet Stores Opening for Holiday 2003

Business Wire, May 16, 2003

Business Editors

WOODBURN, Ore.--(BUSINESS WIRE)--May 16, 2003

Woodburn Company Stores today announced the first group of 12 tenants confirmed for its phase two expansion, which will accommodate an additional 22 upscale outlet stores and cafes.

Construction on the 66,500 square foot expansion is officially underway, with a grand opening scheduled for early November 2003 -- just in time for the holidays.

"The continued growth and momentum of Woodburn Company Stores, combined with our leasing progress, makes us confident that shoppers will be receptive to our expansion," said Steven Craig, managing partner of Craig Realty Group. "In spite of the uneven economic recovery, value-oriented retailers are holding up, if not leading, the pack. Retailers want foot traffic and shoppers want a great mix of brands at discounted prices -- and that's exactly what we offer."

Nationally Recognized Tenants Sign On

New to the Pacific Northwest market and anchoring the phase two expansion will be three Casual Corner branded stores -- Casual Corner Annex, Casual Corner Petite Annex and Casual Corner Woman Annex -- featuring careerwear and sportswear for women. Other new nationally known tenants include: footwear and sports apparel companies Puma and Helly Hansen; and china and durable goods retailers Zales the Diamond Outlet, Mikasa, Le Gourmet Chef, KB Toys and Wireless Express.

Oregon-based retailer Your Northwest joined Woodburn Company Stores this month and will relocate to the new wing when it is complete. In addition, Le Creuset, a current tenant, also will move to a key spot and larger space in phase two, once complete.

With 3.1 million visitors in 2002, Woodburn Company Stores is Oregon's second most popular destination, as ranked by the Oregon Tourism Commission. When phase two is complete, Woodburn Company Stores will be the largest outlet center in the Pacific Northwest.

Glass-Covered Courtyard and Children's Play Area among Special

Features of Phase Two

The new addition, which adjoins the original 234,000 square foot outlet complex to the North, will incorporate many design elements and landscape features found in the original center and popular among shoppers, including: more than 17,500 square feet of glass-covered pedestrian areas which provide for year-round, open-air shopping; landscaping featuring trees and plants native to the Northwest; and extensive use of rock, timber and glass building materials to enhance the shopping environment.

New amenities designed to appeal to families include a central play area for children and more than 12,000-square feet of glass-enclosed courtyard space that will serve as a focal point for on-site community events and musical entertainment. Improved motorcoach access will support Woodburn Company Stores' rapidly growing group tour business.

This phase two development is a catalyst for 200 temporary construction jobs and will create more than 200 permanent jobs when complete. The expansion represents a $5.1 million investment by California-based Craig Realty Group, owner of Woodburn Company Stores and a national leader in the development of upscale outlet centers. Returning as the general contractor to manage the phase two build-out is Portland-based S.D. Deacon.

About Craig Realty Group

Craig Realty Group is a shopping center development firm founded by Steven L. Craig and is based in Newport Beach, California. The company owns and operates the Carlsbad Company Stores, in Carlsbad, California; the Cabazon Outlets located near Palm Springs, California; the Woodburn Company Stores located south of Portland, Oregon; and the Outlets at Anthem in Phoenix, Arizona. In addition, CRG has recently assumed the management of Lake Elsinore Outlets in Lake Elsinore, California, and Citadel Outlets in Los Angeles, California. CRG is currently developing an upscale designer center in Brescia, Italy called Franciacorta Outlet Village, as well as the Promenade at San Clemente in San Clemente, California. Founder Steven L. Craig had previously developed one of the largest and most successful manufacturer outlet centers in the world -- Desert Hills Premium Outlets -- just 90 minutes east of Los Angeles, and he was instrumental in developing Camarillo Premium Outlets -- just 60 minutes west of Los Angeles.

Related Web sites:

www.woodburncompanystores.com

www.craigrealtygroup.com