Feldman Mall Properties Signs Major Lease with Regal Cinemas at Colonie Center Mall in Albany, New York

Business Wire, Dec 15, 2005

NEW YORK -- Feldman Mall Properties, Inc. (NYSE: FMP), a real estate investment trust exclusively focused on the renovation and repositioning of enclosed regional shopping malls, today announced that it has signed an approximately 60,000 square foot lease for a 14 screen theatre with Regal Cinemas, Inc., a subsidiary of Regal Entertainment Group (NYSE: RGC), at Colonie Center in Albany, the state capital of New York. Larry Feldman, Chairman and CEO of Feldman Mall Properties, made the announcement.

"Feldman Mall Properties is working diligently to transform Colonie Center into the most upscale mall in the capital region," said Larry Feldman. "Therefore partnering with Regal Entertainment Group, the largest motion picture exhibitor in the world, was a top priority for FMP. Regal Cinemas will be one of the key cornerstones of our redevelopment at Colonie Center and we have several more very exciting announcements for the Mall just around the corner."

Dick Westerling, Regal Entertainment Group Sr. Vice President of Marketing and Advertising added, "The new Regal Cinemas Colonie Center Stadium 14 will be a state-of-the-art theatre with the latest in amenities. From high backed chairs to the tiered stadium seating, moviegoers in Albany will enjoy the best in entertainment and in a premiere environment at Colonie Center. We believe the mix of shopping, eating and entertainment choices at Colonie Center will make for a tremendous entertainment experience."

Construction for the new, 2,800-seat cinema will begin in the first half of 2006. The theatre will sit atop the mall and will feature a dramatic skylight, 10 stories in height above the ground, with stunning exposure to Interstate 87. The high-end theatre will appeal to the affluent Albany, New York shoppers who currently generate over $200 million in annual sales at Colonie Center.

Among the new theatre's many amenities, stadium seating will provide each moviegoer an unobstructed view of the screen. Plush, high-back rocking recliner seats offer extra comfort. Retractable cup holders move out of the way to form movie seats for two. Also, the latest digital surround sound systems will bring the movies to life.

With immediate access to Interstate 87 on Wolf Road in Albany, Colonie Center is situated on a the prime thoroughfare for persons conducting business in the capital region as well as for tourists visiting the entire Adirondack region. There are nearly 2,000 hotel rooms and over 1,000,000 square feet of office space within immediate proximity to the Wolf Road corridor

Regal Cinemas will be joining many existing powerful-drawing tenants including one of the most successful Macy's in upstate New York, Sears, Boscov's, Christmas Tree, FYE and Steve & Barry's and many solid national tenants, including Victoria's Secret, American Eagle, Bath & Body Works, the Gap, Gap Kids, CJ Banks, Motherhood Maternity and Finish Line. In just a matter of time, Colonie Center will be the premier mall for shopping and entertainment in Albany.

Currently, sales at Colonie Center are nearly $300 a foot, with combined anchor-tenant sales totaling over $160 million per year. It is expected that the new incoming tenants at Colonie, combined with a major renovation of the mall, will translate into higher shop sales, and higher occupancy.

To receive the Company's latest news releases and other corporate documents, please contact the Company at (516) 684-1239. All releases and supplemental data can also be downloaded directly from the Feldman Mall Properties website at: www.FeldmanMall.com.

About Feldman Mall Properties, Inc.

Feldman Mall Properties, Inc. acquires, renovates and repositions enclosed retail shopping malls. Feldman Mall Properties Inc.'s investment strategy is to opportunistically acquire underperforming malls and transform them into physically attractive and profitable Class A or near Class A malls through comprehensive renovation and re-tenanting efforts aimed at increasing shopper traffic and tenant sales.