MLS Mills Corp

The Mills Corporation (NYSE:MLS) announced today that, consistent with the terms of the Company�s Credit and Guaranty Agreement with Goldman Sachs Mortgage Company entered into on May 19, 2006 (the �Senior Term Loan�), no cash dividend will be paid for the third or fourth quarter of 2006 on the Company�s common stock or on the following outstanding series of the Company�s preferred stock: The Mills Corporation 9% Series B Cumulative Redeemable Preferred Stock (NYSE:MLS_PrB); The Mills Corporation 9% Series C Cumulative Redeemable Preferred Stock (NYSE:MLS_PrC); The Mills Corporation 8.75% Series E Cumulative Redeemable Preferred Stock (NYSE:MLS_PrE); The Mills Corporation 6.75 % Series F Convertible Cumulative Redeemable Preferred Stock (NYSE:MLS_PrF); and The Mills Corporation 7.875% Series G Cumulative Redeemable Preferred Stock (NYSE:MLS_PrG) As was disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on May 24, 2006, under the terms of the Senior Term Loan, an aggregate amount of up to $38 million was permitted to be declared and paid as dividends during the remainder of 2006, with the entire amount of such dividends available to be paid in August 2006 if so elected by The Mills. With the payment of the second quarter dividend on the Company�s common and preferred stock, the Company has no further ability to declare and pay dividends on its outstanding common and preferred stock without the consent of Goldman Sachs so long as the Senior Term Loan is outstanding. The Mills Limited Partnership is subject to similar restrictions on its ability to pay distributions on its outstanding common and preferred units. The Company currently estimates that it has already distributed sufficient amounts to satisfy its required distribution to its stockholders for 2006 for REIT qualification purposes. Pursuant to the terms of each series of the Company�s outstanding preferred stock, the Company may not declare or pay dividends, or set apart any payment for dividends, on or with respect to shares of its common stock unless full cumulative dividends on such series of preferred stock for all past dividend periods and the then current dividend period have been or contemporaneously are either declared and paid in cash or declared and a sum sufficient for the payment of such dividends in cash is set apart for payment. The Mills Corporation The Mills Corporation, based in Chevy Chase, MD, is a developer, owner and manager of a diversified global portfolio of retail destinations, including regional shopping malls and market-dominant retail and entertainment centers. It currently owns 39 properties in the United States totaling approximately 48 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 website at www.themills.com. Statements in this press release that are not historical may be deemed forward-looking statements, including as to the distribution of amounts estimated to be sufficient to satisfy the Company�s distribution requirements to its stockholders in 2006, 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 circumstances and 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 SEC, 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 The Mills Corporation (NYSE:MLS) announced today that, consistent with the terms of the Company's Credit and Guaranty Agreement with Goldman Sachs Mortgage Company entered into on May 19, 2006 (the "Senior Term Loan"), no cash dividend will be paid for the third or fourth quarter of 2006 on the Company's common stock or on the following outstanding series of the Company's preferred stock: -- The Mills Corporation 9% Series B Cumulative Redeemable Preferred Stock (NYSE:MLS_PrB); -- The Mills Corporation 9% Series C Cumulative Redeemable Preferred Stock (NYSE:MLS_PrC); -- The Mills Corporation 8.75% Series E Cumulative Redeemable Preferred Stock (NYSE:MLS_PrE); -- The Mills Corporation 6.75 % Series F Convertible Cumulative Redeemable Preferred Stock (NYSE:MLS_PrF); and -- The Mills Corporation 7.875% Series G Cumulative Redeemable Preferred Stock (NYSE:MLS_PrG) As was disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on May 24, 2006, under the terms of the Senior Term Loan, an aggregate amount of up to $38 million was permitted to be declared and paid as dividends during the remainder of 2006, with the entire amount of such dividends available to be paid in August 2006 if so elected by The Mills. With the payment of the second quarter dividend on the Company's common and preferred stock, the Company has no further ability to declare and pay dividends on its outstanding common and preferred stock without the consent of Goldman Sachs so long as the Senior Term Loan is outstanding. The Mills Limited Partnership is subject to similar restrictions on its ability to pay distributions on its outstanding common and preferred units. The Company currently estimates that it has already distributed sufficient amounts to satisfy its required distribution to its stockholders for 2006 for REIT qualification purposes. Pursuant to the terms of each series of the Company's outstanding preferred stock, the Company may not declare or pay dividends, or set apart any payment for dividends, on or with respect to shares of its common stock unless full cumulative dividends on such series of preferred stock for all past dividend periods and the then current dividend period have been or contemporaneously are either declared and paid in cash or declared and a sum sufficient for the payment of such dividends in cash is set apart for payment. The Mills Corporation The Mills Corporation, based in Chevy Chase, MD, is a developer, owner and manager of a diversified global portfolio of retail destinations, including regional shopping malls and market-dominant retail and entertainment centers. It currently owns 39 properties in the United States totaling approximately 48 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 website at www.themills.com. Statements in this press release that are not historical may be deemed forward-looking statements, including as to the distribution of amounts estimated to be sufficient to satisfy the Company's distribution requirements to its stockholders in 2006, 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 circumstances and 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 SEC, 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