The larger transaction, valued at $76.3 million, was for the 50% interest in Orlando Premium Outlets previously owned by Simon Property Group, Inc. (NYSE: SPG). Located on Interstate 4 midway between Walt Disney World and Sea World in Orlando, Florida, Orlando Premium Outlets is a 430,000 square-foot center developed jointly by Chelsea and Simon in 2000. With approximately 120 high-fashion, brand-name and food tenants, it is one of the most successful retail properties in the United States, recording average tenant sales in excess of $550 per square foot during 2001. The purchase price implies a capitalization rate of approximately 9.5%; Chelsea paid cash of $46.6 million and assumed Simon's $29.7 million pro-rata share of existing mortgage debt.

Chelsea also closed on the purchase from Prime Retail, Inc. (OTC: PMRE), for cash of $27.0 million, of Prime Outlets at Edinburgh, a 305,000 square- foot outlet center in Edinburgh, Indiana. Located 40 miles south of downtown Indianapolis at the junction of Interstate 65 and U.S. Route 31, the center was originally developed in 1989 and expanded in 1995; it is generally considered the leading outlet center serving the Indianapolis market, and is currently 98% leased to tenants including Eddie Bauer, GAP, Nautica, Nike and Tommy Hilfiger.

David Bloom, Chairman and Chief Executive Officer of Chelsea, said, "These acquisitions further our efforts to play an active role in the consolidation of the outlet industry. We believe that market conditions and Chelsea's leadership position will continue to yield acquisition opportunities that make sense in terms of both immediate accretion and upside potential. The Orlando purchase, in particular, exemplifies the tremendous value that can be created and built upon in our core Premium Outlet business.

"During our February 27, 2002 conference call, we provided guidance for a 10% increase in real estate-based funds from operations per share for 2002, including potential acquisitions. These two transactions very much solidify our progress toward that target," Mr. Bloom added.

Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that wholly or partially owns 58 Premium Outlet(TM) and other shopping centers -- containing approximately 13.0 million square feet of gross leasable area -- in 28 states and Japan. In addition to Orlando Premium Outlets, the Company's other leading properties include Woodbury Common Premium Outlets, near New York City; Desert Hills Premium Outlets, near Palm Springs, California; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, near Tokyo, Japan. See 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 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: credit risk; the Company's ability to lease its properties; retail, real estate and economic conditions; 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.