Feldman Mall Properties, Inc. Announces Sale of Over Allotment Shares from Its IPO

GREAT NECK, N.Y.--(BUSINESS WIRE)--Jan. 11, 2005--Feldman Mall Properties, Inc. (NYSE: FMP), a real estate investment trust focused on the renovation and repositioning of enclosed shopping malls, today announced the completion of the sale of 1,600,000 additional shares of the Company's initial public offering common stock, at $13.00 per share, sold pursuant to exercise in full by the underwriters to cover over allotments. The additional net proceeds from the over allotment are $19.3 million, resulting in total gross proceeds from the IPO of approximately $159.5 million. After payment of expenses linked to the offering, the net proceeds are now approximately of $144.0 million. The shares are listed on The New York Stock Exchange under the symbol "FMP." The additional proceeds from the over-allotment will be used for the acquisition of additional malls and for working capital.

The shares are being offered through Friedman, Billings, Ramsey & Co. as sole bookrunning manager and RBC Capital Markets Corporation and BB&T Capital Markets, a division of Scott & Stringfellow, Inc., as co-managers. The offering of the securities is being made only by means of a prospectus, copies of which may be obtained from Friedman, Billings, Ramsey & Co. Prospectus Request Department at 1001 Nineteenth Street North, Arlington, Virginia 22209, or by calling (703) 469-1023.

A registration statement relating to the Company's common stock has been filed with the Securities and Exchange Commission and has been declared effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Offers for the shares of common stock will be made only by means of a prospectus (including a final prospectus) forming a part of Feldman Mall Properties, Inc.'s registration statement.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Feldman Mall Properties, Inc. business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Registration Statement on Form S-11 as filed with the Securities and Exchange Commission.

About Feldman Mall Properties, Inc.
Feldman Mall Properties, Inc. acquires, renovates and repositions enclosed retail shopping malls. FMP's investment strategy is to opportunistically acquire underperforming malls and transform them into physically attractive and profitable Class A or near Class A malls through comprehensive renovation and re-tenanting efforts aimed at increasing shopper traffic and tenant sales. For more information on Feldman Mall Properties Inc., visit the Company's website at www.feldmanmall.com.

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