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Simon Property Group Resolves Giftcard Issues with New York Attorney General

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Simon Property Group Resolves Giftcard Issues with New York Attorney General Simon Property Group Resolves Giftcard Issues With New York Attorney General March 1, 2005 INDIANAPOLIS, March 1, 2005 /PRNewswire-FirstCall via COMTEX/ -- Simon Property Group, Inc. (the "Company" or "Simon") (NYSE: SPG) today announced that it has voluntarily entered into a consent agreement with the New York Attorney General that will resolve the dispute regarding the Simon Visa Giftcard program. "The consent agreement provides for a quick and effective resolution of this matter," said Stewart Stockdale, chief marketing officer of Simon Property Group and president of Simon Brand Ventures. "We believe that the Company has complied with all applicable laws," he added. As part of the agreement with the Attorney General's office, no administrative fee will be charged on any Simon Visa Giftcard sold in the state of New York on or after October 18, 2004 prior to the 13th consecutive month of non-use of the card, which is consistent with the terms of the New York statute. In fact, no administrative fees have been charged to date against any cards purchased on or after October 18, 2004, the effective date of the new gift card law, and the Simon Visa Giftcard currently includes full disclosure of all fees, the two issues raised in the dispute. "Since its introduction nationwide in 2003, consumers across the country have overwhelmingly embraced the affordability and versatility of the Simon Visa Giftcard, a bank-issued gift card, along with the ability to track purchases online, use the card at millions of locations worldwide that accept Visa debit cards, and obtain a replacement for a lost or stolen card," Mr. Stockdale said. "The sales growth of 20% in 2004 over the previous year, with 6.3 million cards sold at a total of more than $400 million, represents overwhelming acceptance of the Simon Visa Giftcard by America's consumers," he added. Other changes made to the Giftcard program that became effective nationwide on March 1, 2005 include extension of the card's expiration date from 12 months to 18 months; elimination of the 50¢ charge for calls to the Customer Service line (the first call has always been free); and the addition of an adhesive label to the front of the card that clearly spells out any charges that may be associated with the Simon Visa Giftcard. The sticker was created as an additional disclosure of all applicable fees to the ultimate card user, even though they are fully disclosed on the card carrier that accompanies the card at the time of purchase, as well as on the http://www.simon.com website. Simon owns, or has an interest in, and manages 11 malls in New York: Chautauqua Mall, Lakewood, NY* Jefferson Valley Mall, Yorktown Heights, NY* Nanuet Mall, Nanuet, NY* Roosevelt Field Mall, Garden City, NY* Smith Haven Mall, Lake Grove, NY* The Source, Westbury, NY* Walt Whitman Mall, Huntington Station, NY* The Westchester, White Plains, NY* Cobblestone Court, Victor, NY Waterloo Premium Outlets, Waterloo, NY Woodbury Common Premium Outlets, Central Valley, NY *Note: Simon Malls that currently sell the Simon Visa Giftcard Simon Malls in New York house approximately 1,400 retail and service tenants that generate more than $3 billion dollars in retail sales annually. Additionally, they attract 65 million shopper visits each year and are responsible for the employment of 23,000 people. About Simon Property Group 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(R) centers and community shopping centers. The Company's current total market capitalization is approximately $37 billion. Through its subsidiary partnerships, it currently owns or has an interest in 296 properties in the United States containing an aggregate of 202 million square feet of gross leasable area in 40 states plus Puerto Rico. Simon also holds interests in 51 European shopping centers in France, Italy, Poland and Portugal; 4 Premium Outlet(R) centers in Japan; one Premium Outlet(R) center in Mexico; and one shopping center in Canada. Additional Simon Property Group information is available at http://www.simon.com . About Simon Brand Ventures Simon Brand Ventures (SBV), Simon's business-to-consumer arm, has pioneered the transformation of shopping malls into a medium where consumer brands can build one-on-one relationships with shoppers who make approximately 2 billion visits to Simon Malls each year. Simon's vast franchise of market- leading shopping centers nationwide provides SBV the foundation to monetize the distribution system through numerous consumer ventures. SBV has engaged in a number of consumer business initiatives, including the Simon Giftcard(TM), launch of Simon platform programs such as Simon Kidgits Club(TM), Simon Super Chefs Live!(TM), Simon DTour Live(TM) and Simon Mall For You(TM), a national media delivery channel including experiential marketing methods, and multiple national and local marketing alliances with Coca-Cola, Visa U.S.A. and Cingular Wireless, among others. SOURCE Simon Property Group, Inc. Shelly Doran, +1-317-685-7220 - Investors, or Billie Scott, +1-317-263-7148 - Media, both of Simon Property Group, Inc..
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