Underwriters Exercise Over-Allotment for CBL Offering

CHATTANOOGA, TN-Underwriters of CBL & Associates’ recent offering have exercised their over-allotment option to purchase 400,000 depositary shares related to the company’s sale of 4.6 million depository shares, which raised $115 million to partially finance its $340-million acquisition of four regional shopping malls and to use for its general corporate purposes.

Each of the depository shares represent a 1/10th fractional interest of a share of 7.75% Series C Cumulative Redeemable Preferred Stock at $25.00 apiece. Bear, Stearns & Co. Inc. and Wachovia Securities acted as Joint Book-Running Managers and A.G. Edwards & Sons, Inc. acted as Co-Lead Manager. The co-managers were Legg Mason Wood Walker Inc., McDonald Investments Inc., RBC Capital Markets, J.J.B. Hilliard, W.L. Lyons Inc., Stifel Nicolaus & Company Inc. and Wells Fargo Securities, LLC.

The preferred stock underlying the depositary shares may be redeemed at par at the election of CBL on or after Aug. 22, 2008. The securities have no stated maturity, sinking fund or mandatory redemption and are not convertible into any other CBL securities.