David Bloom, Chairman and Chief Executive Officer, said, "This new capital puts us in an excellent position to take advantage of acquisition and other growth opportunities that may arise. Our enhanced balance sheet and liquidity will provide great flexibility as we move forward, particularly during this time of economic and financial market uncertainty."

Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust that wholly or partially owns 55 outlet shopping centers -- containing 12.5 million square feet of gross leasable area -- in 28 states and Japan. The company's leading properties include Woodbury Common Premium Outlets, near New York City; Wrentham Village Premium Outlets, near Boston; Desert Hills Premium Outlets, near Palm Springs, California; Orlando Premium Outlets, in Orlando, Florida; and Gotemba Premium Outlets, near Tokyo, Japan. Please see http://www.CPGI.com for more information.

Statements in this news release that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Chelsea Property Group believes that the expectations reflected in such statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Forward-looking statements involve known and unknown risks that may cause actual results to differ materially from expected results. Risk factors include, without limitation, the receipt of regulatory entitlements for and completion of development projects, in the United States or abroad; the availability and cost of capital and foreign currency; credit risk; the Company's ability to lease its properties; retail, real estate and economic conditions; risks inherent to being a partner in joint ventures; risks related to the acquisition of certain assets from Konover Property Trust, both known and unknown; competition; and other risks detailed from time to time in Chelsea Property Group's reports to the Securities and Exchange Commission. The Company accepts no responsibility for updating forward-looking statements.