GREAT NECK, N.Y., June 4 /PRNewswire-FirstCall/ -- Feldman Mall Properties, Inc. (Pink Sheets: FMLP) made the following announcements: Sale of Colonie Center Interests On May 28, 2009, the Company sold its interests in Colonie Center to its partner, Heitman Value Partners, for approximately $4.1 million. The transaction allows the Company to receive proceeds that will be used to continue recapitalizing its obligations. As a result of this transaction, the Company expects to recognize a loss on the further writedown of its investment in Colonie Center during 2009. Trust Preferred Securities On May 29, 2009, the Company completed a transaction with Kodiak CDO I, Ltd. and Kodiak CDO II, Ltd. (collectively, the "Sellers") to purchase from the Sellers 1,140 preferred securities of FMP Statutory Trust I, a Delaware statutory trust and an indirect subsidiary of the Company, having an aggregate liquidation amount of $28.5 million (the "TruPS"). The purchase price for the TruPS was comprised of $1.5 million and 1.2 million shares of the Company's common stock. The TruPS and the common securities of the Trust will be cancelled and the Trust liquidated and dissolved, also resulting in the cancellation of the $29.4 million in aggregate principal amount of the unsecured fixed/floating rate junior subordinated notes issued by the Company's operating partnership subsidiary due April 2036 (the "Junior Notes"), which are held by FMP Statutory Trust. The Company used a portion of the Colonie sales proceeds to fund the transaction. As a result of this transaction, the Company anticipates that it will recognize a gain on the retirement of these preferred securities. John F. Dougherty John F. Dougherty, Jr. has been elected Senior Vice President and General Counsel of the Company, effective June 1, 2009. Mr. Dougherty recently retired as a Partner of Stradley, Ronon, Stevens & Young, LLP, of Philadelphia, Penn., where a major portion of his practice was transactional in nature, both corporate and real estate. He has served on a number of publicly- and privately-held company boards of directors and as a trustee and director of several educational and other non-profit entities. A graduate of the University of Notre Dame (BBA-Finance) and Villanova University School of Law (Juris Doctor), he served as a Captain in the United States Air Force prior to entering private practice. Thomas McAuley Thomas McAuley has resigned as a member of the Company's Board of Directors. Mr. McAuley joined the Company during 2008, being nominated by Inland American Real Estate Trust, Inc., pursuant to the terms of the Company's Series A Preferred Stock. A board member to replace Mr. McAuley has not been named. Properties Northgate Mall One of the mall's non-owned anchor tenants totaling approximately 203,000 square feet, Dillard Department Stores, Inc., has announced that it will close on December 31, 2009 and is seeking to sell its premises. Although the Company does not own the anchor store, if the anchor space is not successfully retained or replaced, certain co-tenancy provisions in leases with other tenants could be triggered, which would allow such other tenants to reduce or abate their current rent and possibly vacate the property. Golden Triangle Mall As previously disclosed, the Company has a $30 million line of credit, which is partially secured by the Golden Triangle Mall up to $24.6 million and a guarantee by a direct subsidiary of the Company for any outstanding balance over $24.6 million. As of today, the outstanding balance is $27.8 million and the Company has also violated certain financial covenants. The Company is currently negotiating with the lender for a forbearance through December 31, 2009. Harrisburg Mall As previously disclosed, the Company had an indirect 25% interest in a joint venture limited partnership owning the Harrisburg Mall. In addition, a direct subsidiary of the Company had a limited guarantee to fund a $1.85 million portion of the partnership's mortgage indebtedness in the event the partnership was unable to repay the loan. The lender has instituted foreclosure proceedings, which the partnership is not contesting, and the Company's subsidiary has a remaining obligation under its guarantee totaling approximately $150,000. About Feldman Mall Properties, Inc. The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote. The Company's portfolio, including non-owned anchor tenants, consists of four regional malls aggregating approximately 3.7 million square feet. For more information on Feldman Mall Properties Inc., visit the Company's website at http://www.feldmanmall.com/. DATASOURCE: Feldman Mall Properties, Inc. CONTACT: Thomas E. Wirth, President & Chief Financial Officer of Feldman Mall Properties, Inc., +1-516-684-1239 Web Site: http://www.feldmanmall.com/

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