In the retail development area, principals of Republic Properties Corporation are co-founders of the Mills Corporation's predecessor companies and various family interests remain significant shareholders. With annual revenues of over $150 million dollars and a market value in excess of $1 billion, the Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, VA. The Mills Corp. owns, develops, leases, manages and markets a portfolio of 20 "shopping and leisure destinations" totaling approximately 25 million square feet in 17 states. Currently, the Company has five projects under construction and/or development in the United States and two internationally: Toronto, Canada and Madrid, Spain.

The corporation is most noted for its ownership, development, leasing and management of a portfolio currently consisting of seven superior regional "value retail" outlet malls (called Mills) and 11 community shopping centers. These malls represent more than 13 million square feet of retail space, including: Potomac Mills (Washington, D.C.); Franklin Mills (Philadelphia); Sawgrass Mills (Fort Lauderdale) and Gurnee Mills (Chicago) as well as Mills in Los Angeles, Dallas and Tempe, Arizona. The Mills feature a diversified tenant mix from all major value retail categories, with a merchandise selection and shopping environment similar to that of a conventional fully-enclosed super regional mall. New Mills projects are currently being developed by the corporation throughout the United States.

Madrid Xanadu is the largest snow, entertainment, and retail destination in Europe, and features more than 220 retail, entertainment, dining and leisure venues. The centerpiece of the property is an 820-foot-long snow slope - the largest indoor snow sports facility in Europe. Geared toward family entertainment, Madrid Xanadu also boasts a movie complex, indoor go-carts, high-tech bowling, and much more. Anchored by Hipercor and Tiendas El Corte Ingles, Madrid Xanadu brings numerous first-time retailers to the Spanish market. It is a joint venture of the Mills Corporation of the United States and Parcelatoria de Gonzalo Chacon of Madrid. Located in southwest Madrid, in Arroyomolinos, Madrid Xanadu is sited on the N-V (Extremadura Road) and has more than 8,000 free parking spaces. Madrid Xanadu is open 365 days a year.

In forthcoming developments, Mills and its JV partner (Mack-Cali) have been selected to redevelop the Meadowlands Sports Complex site in New Jersey. Assuming permitting hurdles are cleared as expected, Mills could break group before year-end for a 2005 opening.

St. Louis Mills is on-track for a November 13, 2003 opening. All anchor leases have been executed or are deep in the leasing process. The $200 million project is 58.8% pre-leased according to the supplemental, up from 28.2% last quarter.

Cincinnati Mills (the redevelopment of the Forest Fair Mall) is now expected to open in early 2004.

Vaughan Mills in Toronto is finally expected to break ground in June, after nearly a two-year delay. The project is expected to open in Fall 2004. Anchor commitments include Bass Pro Shop, Saks Off Fifth, Bed Bath & Beyond, Children's Place, and Tommy Hilfiger, among others.

Pittsburg Mills is also expected to open in late 2004, or possibly early 2005. Anchor commitments have been received from Cinemark Theaters, Dick's Sporting Goods, and Bed Bath & Beyond. Mills has two JV partners on this project, Zamias and Kan-Am.

The company is also looking at traditional Mills opportunities in Northern California, Northern Ohio, and Northern Virginia. The Mills Corporation is pursuing several additional projects in Spain including Barcelona, Bilbao, Seville, and Valencia. In Italy, the company also continues to work on potential developments in Milan, Florence, and Rome. Mills is also targeting construction to begin on a development in Valencia in the first quarter of 2004, with an opening in late 2005. The corporation plans to expand by developing Mills in major metropolitan markets with high traffic and strong demographics which enable the creation of sufficient critical mass for a successful operation.