LAS VEGAS, LAKELAND FACTORY OUTLET MALLS SOLD TO CHELSEA PROPERTY GROUP, INC.
Companies Divest 2 Malls, Concentrate on Future Development Projects

MEMPHIS, Tenn., (August 1, 2003) – The sale of Belz Factory Outlet World - Las Vegas and Belz Factory Outlet World-Lakeland, managed by Belz and owned by Estein & Associates USA Ltd. of Orlando, Fla., was completed today.

Belz retains ownership of a 51,874-square-foot annex at the Las Vegas mall as well as 12 acres of outparcels fronting Las Vegas Boulevard and the mall. In addition, Belz still owns more than 100 acres adjacent to the Lakeland mall and currently is working with the city of Lakeland to develop a multi-use town center on the site.

The two malls were part of a portfolio of various Belz Factory Outlet Worlds developed and managed by Belz and owned by Estein. The two companies retain Belz Factory Outlet Worlds in Orlando, Fla.; St. Augustine, Fla.; Pigeon Forge, Tenn., San Juan, Puerto Rico, and Belz Designer Outlet Centre in Orlando, and 100 Oaks Mall in Nashville, Tenn.

"We've witnessed enormous growth in Las Vegas over the last five years," said Belz Factory Outlet President Andrew J. Groveman in announcing the sale. "The city's retail sector has kept pace with this rapid development and is a highly saturated market right now. It's a strategic time for us to move onto other development initiatives. We believe it has reached its full potential."

Belz developed and opened the Las Vegas center in November 1993 with a 255,000-square-foot of gross leasable space Mall. Belz added 225,000 of gross leasable space in September 1996 and a 51,874-square-foot annex in March 1997.

Estein currently has substantially more square footage under contract to purchase, as well as other deals that they are negotiating. The Las Vegas and Lakeland malls represented less than 15 percent of the company's real estate portfolio.

Belz continues to evaluate new development opportunities as they arise. "We are currently working on the second phase of our Belz Factory Outlet World in San Juan, Puerto Rico," said Andrew J. Groveman.

About Belz Enterprises
With headquarters in Memphis, Belz Enterprises is a multi-faceted real estate company with more than 30 million square feet of developed property, including more than 40 shopping complexes, ranging from community shopping centers to regional malls. In addition to its retail holdings, the company has developed and owns a group of premier hotels, including the flagship Peabody Hotels in Memphis and Orlando and the recently opened Peabody Hotel in Little Rock, Ark.