MLS Mills Corp

The Mills Corporation (NYSE:MLS) today announced several important management changes as part of the Company's continuing efforts to restructure operations to facilitate the strategic alternatives process, create shareholder value by conserving cash and reducing debt. Chairman and Chief Executive Officer Laurence C. Siegel commented, "These organizational changes are intended to create a management structure that focuses on day-to-day operational matters that will enhance the value of our properties. These changes also will allow certain members of management, including President Mark Ettenger, to focus exclusively on the strategic alternatives process. "We are very pleased that the members of our senior management team, some relatively new to The Mills and some Company veterans, are taking on new responsibilities. These individuals, who are dedicated to the success of our strategic process, have also proven in their careers their ability and drive to make us better controlled and financially and operationally stronger." The changes announced today include the following: -0- *T -- Mark Ettenger, in a role designed to help deliver value to our shareholders, will exclusively devote his time to advising the newly formed Special Negotiating Committee of the Board and Mr. Siegel, who will manage the strategic alternatives process. -- Mark Ordan, who joined the Company as Chief Operating Officer in March 2006, will assume responsibility for Asset Management and International Operations, in addition to his previously announced responsibility for Leasing, Development and Marketing. Mark reports directly to Mr. Siegel. -- Rick Nadeau, who joined The Mills Corporation in March 2006 as Executive Vice President, Finance and Accounting, will assume the position of Chief Financial Officer effective July 1, 2006. He will be responsible for completing the Company's financial restatement; managing several parts of the Company's operations, including accounting, finance, information technology and human resources; and assisting in the strategic alternatives process. Mr. Nadeau reports directly to Mr. Siegel, as well as to the Audit Committee of the Board of Directors. M.J. Morrow, who has served as our CFO, will continue in the Finance Department and will assist in the financial reporting process. -- Mark Dorigan and Mary Ellen Seravalli, two individuals with a long tenure with The Mills, have been named Co-General Counsels. While in many areas, Mr. Dorigan and Ms. Seravalli will be collaborating, each will focus on different aspects of our business. Mr. Dorigan will be responsible for Real Estate Operations, Leasing and Project-Level Financings, and Ms. Seravalli will be responsible for SEC and Corporate matters, Governance and Corporate Ethics and Human Resources. Tad Glenn, our General Counsel since October 2005, has resigned for personal reasons. -- Scott Ball, formerly Senior Vice President of Leasing at The Rouse Company and Executive Vice President, Asset Management at The Mills Corporation, will now direct the daily operations of both Asset Management and In-Line leasing. This combination will further integrate the different aspects of property management and will strengthen our leasing operations. -- Jim Napoli, a key member of senior management, will now focus on strategic leasing matters and client relationships for both our domestic and international projects. -- Gregg Goodman, Executive Vice President, Anchor Leasing, will continue to direct major tenant activities and manage the disposition of peripheral land. -- Greg Neeb, reporting directly to Mr. Siegel, will direct all capital allocation issues at the Company, including the planning, budgeting and spending on all capital projects. Jamie Stolpestad, reporting to Greg Neeb, will assume responsibility for major project oversight. Together, Mr. Neeb and Mr. Stolpestad will also support the daily activities of our strategic alternatives process, reporting to Mr. Siegel and the Special Negotiating Committee of the Board. -- Scott DeCain, reporting to Mr. Ordan, will be responsible for the oversight of changes in our operating processes and assisting Mr. Ordan with the implementation of major Company initiatives. Mr. DeCain will also be responsible for investor relations. -- Peter Todd will now be responsible for our streamlined international operations. Ron Weidner will be leaving the Company, but will consult with the Company on our Mercati Generali development. Our international changes are part of our ongoing effort to right-size our operations, while focusing on our international core assets, developments and redevelopment opportunities. *T Mills' restructuring efforts over the last several months have resulted in 222 fewer full time employees. The Company expects that the future annual run rate savings from these reductions will be over $20 million, although in 2006 these savings will be offset by one-time charges. About The Mills Corporation The Mills Corporation, based in Arlington, Virginia, is a developer, owner and manager of a diversified global portfolio of retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. It currently owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction. The Mills is traded on the New York Stock Exchange under the ticker: MLS. For more information, visit the Company's web site at www.themills.com. Statements in this press release that are not historical may be deemed forward-looking statements within the meaning of the federal securities laws. Although The Mills Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The Mills Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and its annual reports on Form 10-K for a discussion of such risks and uncertainties. There can be no assurance that the exploration of strategic alternatives will result in any transaction.