Response to Letter from Simon Property Group, Inc.

CAPITAL SHOPPING CENTRES GROUP PLC

12 December 2010

Capital Shopping Centres Group PLC

Response to SPG letter

Capital Shopping Centres Group PLC ("CSC" or the "Company") is responding to the announcement and the accompanying letter to the Chairman of CSC by Simon Property Group, Inc. ("SPG") released earlier today which suggests fundamental changes to the transaction with Peel.

CSC considers that what SPG is suggesting is incapable of implementation and completely impracticable.

The CSC Board notes that, by making this proposal, SPG is now recognising the strategic importance of the Trafford Centre as a future part of CSC's portfolio.

Peel has reiterated to the CSC Board its consistent view that it wishes to remain invested in UK regional shopping centres and does not wish to sell the Trafford Centre for cash as SPG is suggesting. Peel's stated objective remains to be a long-term supportive shareholder in CSC as part of Peel's overall strategy of investment diversification.

The CSC Board has reviewed what SPG proposes which is that CSC could issue 153.3 million new ordinary shares at 400p per share and £209 million of bonds convertible into 52.2 million new ordinary shares directly to SPG for cash. The issue would be subject to a clawback of 50% by existing CSC shareholders.

The CSC Board notes that what SPG proposes would provide SPG with a holding of between approximately 18.4% and 26.9% in CSC, together with a seat on CSC's Board.

It is not open to CSC unilaterally to alter the terms of its legally binding contract with Peel. Therefore, what SPG proposes does not provide a genuine alternative for CSC shareholders.

The CSC Board continues to believe it is in CSC shareholders' best interests to proceed with the acquisition on the terms agreed with Peel which represents a compelling transaction of significant benefit to CSC shareholders.

Accordingly, the CSC Board reiterates its recommendation that CSC shareholders vote in favour of the Trafford Centre acquisition at the Extraordinary General Meeting to be held on 20 December 2010.

Contacts:

Capital Shopping Centres Group PLC: +44 (0)20 7887 4220

David Fischel Chief Executive

Matthew Roberts Finance Director

Kate Bowyer Investor Relations

Hudson Sandler (UK Public Relations) +44 (0)20 7796 4133

Michael Sandler

Wendy Baker

College Hill Associates (SA Public Relations) +27 (0)11 447 3030

Nicholas Williams

Disclosure requirements of the Takeover Code (the "Code")

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of the Company or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the Company and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of the Company or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the Company or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of the Company or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the Company and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of the Company or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the Company and by any offeror and Dealing Disclosures must also be made by the Company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the Company and any offeror in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129.

General

A copy of this announcement will be available free of charge on the Company's website, www.capital-shopping-centres.co.uk/investors/shareholderinfo/simon_approach/, later today.

Capitalised terms used in this announcement but not defined herein shall have the meaning attributed to them in the announcement made at 7:00 a.m. on 25 November 2010 by the Company in connection with the Acquisition.