Feldman Equities and Loews Team-Up for Success

Business Wire, May 22, 2003

Business Editors

TUCSON, Ariz.--(BUSINESS WIRE)--May 22, 2003

Feldman Equities has concluded a creative deal with the theater tenant at Foothills Mall in Tucson, Arizona - a 15-screen Loews Cinema.

The agreement allows Loews to upgrade their theatres to stadium seating, while creating a new grand entrance inside the mall.

During any week, Loews cinema at Foothills is attended by thousands of patrons. However, the bulk of these patrons enter through the theater's parking lot entrance, and most never enter the mall. The conversion to stadium seating and redirecting of Loews patrons into the mall's interior will have a dramatic effect on mall pedestrian traffic, and mall sales are expected to increase sharply.

"This is a classic 'win-win' business deal for both parties," said Larry Feldman, Feldman Equities' CEO. "With modern stadium seating, Loews will generate substantially more ticket sales. And a healthier mall will encourage more shoppers to visit, which will result in more ticket sales."

Mike Norris, president of Loews Cineplex Entertainment U.S., added, "We are thrilled about expanding our Foothills lobby and enhancing our entrance. Not only will our new lobby offer the latest in comfort and concessions, the renovations will make access to and from the theatre more convenient for our patrons, as well as for the mall patrons. The conversion to stadium seating of the Foothills cinema is also consistent with our plans to upgrade and expand our U.S. facilities."

Movie-going has enjoyed steady growth for years, and in 2002 the box office increased by more than 12% - pushing America's movie going budget to $9.37 billion according to National Association of Theater Owners.

In early 2002, Feldman Equities acquired Foothills Mall, a successful entertainment and discount oriented enclosed mall anchored by Barnes & Noble, Linens n' Things, Saks Off 5th Ave, Ross Dress for Less and Nike Factory Store.

The multi-million-dollar repositioning of Foothills Mall is the latest example of Feldman's hands-on approach to turning around under-performing assets, which has earned Feldman a national reputation for being ahead of the market and producing above average returns.

In addition to the Loews theater renovation at Foothills Mall, Feldman has developed new retail space and pad sites, creating over 60,000 sf for tenants like Thomasville Furniture, Fox & Hound Smokehouse, Famous Footwear, Compass Bank, Starbucks and Arizona Central Credit Union.