MLS Mills Corp

The Mills Corporation (NYSE:MLS) announced today that the Audit Committee of its Board of Directors has completed its comprehensive investigation into various issues related to the historical accounting policies and practices of The Mills Corporation (the �Company�). The investigation was conducted with the assistance of Gibson, Dunn & Crutcher, LLP, the Audit Committee's independent counsel, and included the collection and review of over four million pages of documents and 240 interviews of nearly 100 individuals. The Audit Committee and its independent counsel have reported the findings of the investigation to the Company�s Board of Directors, to Ernst & Young, the Company�s outside auditor, and to the staff of the U.S. Securities and Exchange Commission (�SEC�), Division of Enforcement. The Company continues to cooperate fully with the SEC in its ongoing investigation. To address the concerns identified during the course of the investigation, including material weaknesses in the Company�s internal control over financial reporting, the Company, with the oversight of the Board of Directors, has taken several important remedial steps, including, over the course of the past year, a near-complete change of executive management personnel. As the result of various accounting adjustments arising in part from the investigation, as previously disclosed, the Company and The Mills Limited Partnership (�TMLP�) will be restating their financial statements for 2001-2004 and the first three quarters of 2005. Details regarding the investigation and certain remedial measures taken, an update on the anticipated ranges of the cumulative impacts of the restatement on the Company�s and TMLP�s financial statements, the anticipated effect of the planned changes in accounting principles, 2005 and 2006 impairment charges and outstanding consolidated debt and mandatory redeemable preferred stock is provided in a report on Form 8-K filed today with the SEC. About The Mills Corporation The Mills Corporation, based in Chevy Chase, MD, is a developer, owner and manager of a diversified portfolio of retail destinations, including regional shopping malls and market-dominant retail and entertainment centers. It currently owns 38 properties in the United States totaling approximately 47 million square feet. 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, including, among other things, as to the anticipated impacts of the pending restatement of the Company�s and TMLP�s financial statements and changes in accounting principles and the amount of the impairment charges that are expected to be recorded, may be deemed forward-looking statements within the meaning of the federal securities laws. Although the Company 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 its actual circumstances and results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties, including the identification of any additional matters requiring adjustment, completion of the restated financial statements, the length of time needed for E&Y to complete their procedures, any actions taken by the SEC or other factors. The Company 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.