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Chelsea Property Group, Inc. (ticker: CPG, exchange: New York Stock Exchange) News Release - 17-Feb-2004
Chelsea Interactive Announces Agreement With GSI Commerce
Key Chelsea Interactive Clients to Transition to New Company
ROSELAND, N.J.--(BUSINESS WIRE)--Feb. 17, 2004--Chelsea Property Group, Inc. (NYSE: CPG - News) announced today a joint venture between its Chelsea Interactive, Inc. subsidiary and GSI Commerce, Inc. (NASDQ: GSIC). The joint venture, known as GSI-Chelsea Solutions, LLC, will take over Chelsea Interactive's core business operations and client base.
Chelsea Property Group said in March 2003 that it would fulfill its earlier commitment to cap its investment in Chelsea Interactive. Under the terms of the GSI agreement, Chelsea Interactive will no longer operate its e-commerce technology platform, but will retain a minority interest in GSI-Chelsea Solutions. Chelsea Interactive's largest clients have entered service agreements with GSI-Chelsea Solutions and will transition their e-commerce activities to the GSI-Chelsea platform by the second quarter of 2004.
The agreement with GSI does not affect Chelsea Property Group's most recent guidance with respect to funds from operations.
GSI Commerce is a leading outsource solution provider for e-commerce. The company develops and operates e-commerce businesses for retailers, branded manufacturers, media companies, television networks and professional sports organizations. The GSI Commerce platform includes Web site design and development, e-commerce technology, customer service, fulfillment, merchandising, content development and management, and online and database marketing.
Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that wholly or partially owns 60 Premium OutletŪ and other retail shopping centers - containing 16.1 million square feet of GLA - in 31 states and Japan. The company's leading properties include Woodbury Common Premium Outlets, near New York City; Wrentham Village Premium Outlets, near Boston; Orlando Premium Outlets, in Orlando, Florida; and Gotemba Premium Outlets, near Tokyo, Japan.
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 inherent to developing and marketing a technology based business; 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.
CONTACT: Chelsea Property Group, Inc.
Michael J. Clarke, 973-228-6111
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