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Back Porch, Ron Jon Surf Shop, Southern Theatres to Open at Pier Park

PANAMA CITY BEACH, FL (February 10, 2006) - Great restaurants with a loyal local following, state-of-the-art movie theatres, and a world-famous surf shop highlight the first announcement of retailers coming to Pier Park which will be developed by Simon Property Group, Inc. (NYSE:SPG), the country's largest owner, developer and manager of high quality retail real estate.

Southern Restaurant Group's Back Porch Seafood House and Reggae J's Island Grill, Southern Theatres, and Ron Jon Surf Shop will be at Pier Park, a much-anticipated 900,000 square-foot retail and entertainment complex located on 93 acres that covers land from Front Beach Road (at the City Pier) to the heavily traveled Highway 98. Phase I of Pier Park is scheduled to open in the spring of 2007.

"The development of Pier Park is the singular most significant event in this city's history," said Lee Sullivan, the mayor of Panama City Beach. "Pier Park will allow Panama City Beach to truly have a city identity. We're thrilled to be working with Simon Property Group and have the opportunity to truly create a 'downtown' for our city."

The Southern Restaurant Group (SRG) announced that it would open two restaurants at Pier Park. One of the restaurants will be the Back Porch Seafood House, modeled after the world famous Back Porch in Destin. The other restaurant will be Reggae J's Island Grill, featuring seafood with a Caribbean flair. Both restaurants will be located on Front Beach Road and will have direct views of the Gulf of Mexico. Grand opening for both restaurants is scheduled for the spring of 2007.

"The Pier Park project fits very well with what our mission is at Southern Restaurant Group - to serve the highest quality seafood in a scenic and fun environment," said SRG president, John Comer. "Partnering with Simon and their great vision for Pier Park, we're confident that we'll create two great restaurants that will be part of the Panama City Beach community for years to come."

Southern Theatres will open a 16-screen, 3,000 seat movie theatre at Pier Park. The Grand 16 will feature stadium seating, digital sound, advance ticketing over the Internet, three concession areas, a specialty café and game room. The stadium seating, featuring an eighteen-inch height difference between each row, will allow patrons to enjoy unobstructed views from plush, high-backed rocking chair seats.

"We are looking forward to opening this state-of-the-art movie theatre at Pier Park," said George Solomon, of Southern Theatres, LLC. "We are confident that our patrons will experience first-hand our total commitment to customer service and enjoy watching a movie in this theatre which features the latest technology and amenities available."

Southern Theatres, LLC currently owns and operates 101 screens in Louisiana, Mississippi, and Texas. In addition to Pier Park, upcoming projects include a Grand Theatre in Winston-Salem, NC and Slidell, LA. Southern Theatres, LLC is responsible for the development and daily operations of these theatres and is backed by Veronis Suhler Stevenson (VSS), a New York and London based investment firm. For additional information: www.thegrandtheatre.com.

Ron Jon Surf Shop will bring its signature concept to a 12,000 square foot store at Pier Park. Ron Jon Surf Shop was founded in 1961 when surfing enthusiast Ron DiMenna began selling surfboards at his tiny oceanside shop in Long Beach Island, N.J. The lifestyle-apparel and board-sports-equipment retailer has since opened stores in Cocoa Beach, Ft. Lauderdale and Orlando Fla., and Orange, Calif. The company's flagship store in Cocoa Beach is the world's largest surf shop. It operates 24 hours a day, 365 days a year.

"Ron Jon Surf Shop is excited about our expansion into Panama City Beach as part of the Pier Park development, bringing Florida's world famous surf and beach lifestyle brand to the Panhandle market," said Ed Moriarty, president of Ron Jon Surf Shop. "We are extremely pleased with the location and the opportunity to work with a great retail developer like Simon. Ron Jon Surf Shop and the beach are a perfect match and this new beachside store location will be a natural fit for the Ron Jon brand."

Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet® centers and community/lifestyle centers. The Company's current total market capitalization is approximately $42 billion. Through its subsidiary partnership, it currently owns or has an interest in 286 properties in the United States containing an aggregate of 200 million square feet of gross leasable area in 39 states plus Puerto Rico. Simon also owns interests in 51 European shopping centers in France, Italy, and Poland; 5 Premium Outlet® centers in Japan; and one Premium Outlet® center in Mexico. Additional Simon Property Group information is available at www.simon.com.

Les Morris
Simon Property Group
(317) 263-7711
E-mail: lmorris@simon.com