Simon Property Group and Park Place Entertainment Announce Expansion of the Forum Shops At Caesars

LAS VEGAS--(BUSINESS WIRE)--April 22, 2002--Simon Property Group, Inc. (NYSE: SPG) and Park Place Entertainment Corporation (NYSE: PPE), parent company of Caesars Palace, today announced plans for the Phase III expansion of The Forum Shops at Caesars.

    The 200,000-square-foot, three-level expansion will extend from the existing Phase I structure to the Las Vegas Strip, adding an array of upscale specialty retail tenants to further expand its selection of luxury brand merchandise. The addition of several new restaurants also will further broaden The Forum Shops' appeal as the premier venue for an exclusive fine dining experience.

    A new grand pedestrian plaza from Las Vegas Boulevard featuring breathtaking Roman architecture will serve as the exterior focal point from the Strip, punctuating the entrance to the expanded area. Construction on Phase III will begin in the near future with a projected 2004 opening.

    "The Forum Shops is undeniably the most valuable retail real estate in all of Las Vegas," said David Simon, chief executive officer of Simon Property Group. "Already recognized as one of the country's premier shopping and entertainment destinations for both domestic and international visitors, we feel the addition offers even greater potential, evidenced by the interest we have received from world class retailers who have waited for this expansion to establish their presence in Las Vegas," he added.

    In recent weeks, several designer and couture tenants have signed leases to join the existing Forum Shops including Robert Cavalli, Chopard, Dolce & Gabbana, D & G Sport, Furla, MAC Cosmetics, Donald Pliner, Tod's, Tourneau, Valentino and Louis Vuitton, which will relocate and expand its existing store to be situated adjacent to Valentino and Tod's.

    "Adding this major new component to The Forum Shops will significantly enhance the drawing power and appeal of Caesars Palace and the critical mass of attractions within our resort cluster at the Four Corners in Las Vegas," said Thomas E. Gallagher, president and chief executive officer of Park Place Entertainment. "The Forum Shops expansion will strongly complement our new 4,000-seat Colosseum, which opens in March 2003 with a spectacular new theatrical production starring Celine Dion." Park Place's other mid-Strip resorts include Flamingo, Bally's and Paris Las Vegas.

    The Forum Shops at Caesars opened in May, 1992 with 283,000 square feet of GLA. Simon Property Group and Gordon Group Holdings, LLC, developers of Phase I, proceeded with Phase II in response to the project's overwhelming success. The second phase, which increased The Forum Shops' size to 500,000 square feet, was completed in August, 1997. In 2001 alone, the center welcomed 20 million visitors, and The Forum Shops continues to be widely acclaimed as the most productive shopping center in the U.S. Simon and the Gordon Company will continue as joint venture partners for development of Phase III, which, like earlier phases, will be built on land leased to the developers. Simon will provide funding for the expansion. The expansion is subject to execution of definitive agreements by all parties.

    About Simon Property Group

    Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a self-administered and self-managed real estate investment trust which, through its subsidiary partnerships, is engaged in the ownership, development, management, leasing, acquisition and expansion of income-producing properties, primarily regional malls and community shopping centers. It currently owns or has an interest in 249 properties containing an aggregate of 185 million square feet of gross leasable area in 36 states and seven assets in Europe and Canada. Together with its affiliated management company, Simon owns or manages approximately 191 million square feet of gross leasable area in retail and mixed-use properties. Shares of Simon Property Group, Inc. are paired with beneficial interests in shares of stock of SPG Realty Consultants, Inc. Additional Simon Property Group information is available at www.shopsimon.com.

    About Gordon Group Holdings, LLC

    Sheldon M. Gordon's firm has always been successful in developing unique and exciting entertainment oriented retail complexes. Always "breaking the mold," Gordon Group Holdings, LLC has developed or co-developed innovative projects such as the Beverly Center in Los Angeles and San Francisco Center, as well as The Forum Shops at Caesars. Other themed retail entertainment projects currently in development by the Gordon Group Holdings, LLC include The Ocean One Pier in Atlantic City, New Jersey, a 250,000-square-foot retail entertainment complex at the heart of The Boardwalk, scheduled to open in 2004, as well as The Shops at Mohegan Sun Casino in Uncasville, Connecticut.

    About Park Place Entertainment Corporation

    Park Place Entertainment Corporation (NYSE: PPE) is the world's largest gaming company. Park Place Entertainment owns, manages or has an interest in 28 gaming properties around the world that operate under the Bally's, Caesars, Flamingo, Grand Casinos, Hilton and Paris brands with a total of two million square feet of gaming space, more than 28,000 hotel rooms and 55,000 employees.