Contact for Investor Relations: Greg Neeb 703/526-5150

For Immediate Release

THE MILLS CORPORATION INFORMED BY TRI TOWN: CONTRACT WILL BE TERMINATED

Arlington, Va., November 9, 2000--The Mills Corporation (NYSE: MLS), owner and operator of market-dominant retail and entertainment destinations, expects the South Shore Tri Town Development Corporation (Tri Town) to terminate the contract for Mills to build at the former South Weymouth Naval Air Station. The Mills had entered into an agreement with the SSTTDC to build a 1.1 million square foot Mills, with an additional 200,000 square feet of retail and up to 325,000 square feet of office on 155 acres. The Mills has been informed by Tri Town that they will terminate the contract before the November 13, 2000 Weymouth Town Council vote on the project.

Several years ago, The Mills was invited by the local, State and Federal political leaders to consider building a Mills as the centerpiece of the base's redevelopment. The three towns involved overwhelmingly voted in 1998 to rezone the base to permit this redevelopment to happen. Mills has worked in good faith with the leadership, the towns, and the Tri Town Board to make the project a reality.

"When The Mills began discussions on this project several years ago we recognized the challenges to this site and to base redevelopment in general," said James Dausch, Senior Executive Vice President, Development. "Mills has conducted a significant amount of due diligence and community outreach and we know New England Mills would be a success and that the support for the project remains strong among the unions, business groups, and in much of the community."

Nevertheless, Tri Town has advised Mills that without unanimous local political support of Weymouth, Rockland and Abington, the required public funding to develop the project would not be forthcoming. Without assurance of the requisite funding, it would not be prudent for Mills to continue to pursue the project.

"It has come down to lack of local political support, a vocal minority and uncertain public funding," Dausch said. "The Mills can not move forward with absolute certainty that all of the infrastructure and improvements that are necessary for New England Mills and the entire Reuse Project can occur in the timeframe needed and we expect Tri Town to recognize this situation and terminate our contract."

The greater Boston/New England region remains of great interest to The Mills. Dausch added, "The New England market is primed and ready for The Mills and if our contract is terminated we will pursue another site that we have identified to invest $250 million in building the first-of-its-kind shopping and entertainment destination in the area."

The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Va., that owns, develops, leases, manages and markets a portfolio of 11 market dominant retail and entertainment destinations (10 Mills and one Block) totaling approximately 16 million square feet in 9 states. Arundel Mills, located in the Baltimore-Washington corridor at the intersection of routes 100 and 295, will be the 12th project developed by The Mills Corporation. Currently, the company has six projects under construction and/or development in the United States and one in Toronto, Canada. The Mills Corporation's Internet address is www.millscorp.com.