Simon Property Group To Purchase In Palo Alto, California

July 1, 2003

INDIANAPOLIS, Ind., Jul 1, 2003 /PRNewswire-FirstCall via COMTEX/ -- Simon Property Group (NYSE: SPG) announced today that it has agreed to purchase a 100 percent stake in Stanford Shopping Center for $333 million. Stanford University, as required under its Founding Grant, will continue to hold, as lessor, a long-term ground lease underlying the asset. This transaction, which is subject to customary due diligence and closing conditions, is expected to close in early August, 2003. Eastdil Realty assisted Stanford in arranging the sale.

Stanford Shopping Center, which has been managed by the University's Stanford Management Company, is one of the most successful regional malls in the with 2002 total sales in excess of $500 million and comparable tenant sales per square foot of approximately $600. Stanford Shopping Center is one of the few open-air super regional shopping centers in the United States and is anchored by five major department stores -- Neiman Marcus, Nordstrom, Bloomingdale's, Macy's, and Macy's Men's Store. It was developed by the University in multiple phases beginning in 1956 and comprises over 1.3 million square feet of gross leasable area. Revenues from the shopping center support the University's teaching and research mission.

"We are pleased that Simon Property Group will be the new owner and manager of Stanford Shopping Center," said William Phillips, Managing Director of Real Estate for Stanford Management Company. "Simon has an extensive portfolio of highly productive properties whose operating performance is strong and continues to improve. Simon is also aware that the Shopping Center is an integral part of University and Palo Alto life and they will manage the Center in a way that meets the needs of shoppers and the local community."

"Stanford Shopping Center is the premier super regional shopping center in the San Francisco Bay Area, and one of the top regional malls in the United States," said David Simon, Chief Executive Officer of Simon Property Group. "This asset is a perfect fit in our strategy to own and manage high-quality, highly-productive retail real estate; it strengthens our presence in the West; and it reinforces our position as the marketplace leader. We have the opportunity to finance the acquisition at attractive rates, and the transaction is expected to be immediately accretive to earnings."

Certain matters discussed in this press release 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, it can give no assurance that its expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward- looking statements due to a variety of risks and uncertainties.

Those risks and uncertainties include, but are not limited to, the national, regional and local economic climate, competitive market forces, changes in market rental rates, trends in the retail industry, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and changes in market rates of interest. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K for a discussion of such risks and uncertainties.

About Simon Property Group, Inc.

Simon Property Group, Inc. (NYSE: SPG), headquartered in , Indiana, is a real estate investment trust engaged in the ownership and management of income-producing properties, primarily regional malls and community shopping centers. Through its subsidiary partnerships, it currently owns or has an interest in 238 properties containing an aggregate of 182 million square feet of gross leasable area in 36 states, as well as nine assets in Europe and and ownership interests in other real estate assets. Additional Simon Property Group information is available at www.simon.com .

SOURCE Simon Property Group, Inc.

Investors, Shelly Doran, +1-317-685-7330, or Media, Les Morris, +1-317-263-7711, both of Simon Property Group, Inc.; or William Phillips of Stanford Management Company, +1-650-926-0212