INDIANAPOLIS, June 28 /PRNewswire/ -- Simon Property Group, Inc. ("Simon") (NYSE: SPG) today announced that the merger of SPG Properties, Inc. ("Properties") with and into Simon Property Group, Inc. was approved by the shareholders of Properties. The merger will be effective July 1, 2001.

The purpose of the merger is to streamline the Simon Property Group structure by eliminating Properties as a separate subsidiary of Simon. Under the terms of the merger agreement, each share of the two outstanding series of Properties' preferred stock will be converted into shares of one of two newly established series of Simon preferred stock with identical powers, designations, preferences and rights.

Each share of Properties 8 3/4% Series B Cumulative Redeemable Preferred Stock (NYSE: SGVPrB) will be converted into one share of Simon Property Group, Inc. 8 3/4% Series F Cumulative Redeemable Preferred Stock (NYSE: SPGPrF). Each share of Properties 7.89% Series C Cumulative Step-Up Premium Rate Preferred Stock (not listed) will be converted into one share of Simon Property Group, Inc. 7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock (SPGPrG). The newly established series of Simon preferred stock will commence trading on the New York Stock Exchange on Monday, July 2, 2001.

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 250 properties containing an aggregate of 185 million square feet of gross leasable area in 36 states and five assets in Europe. Together with its affiliated management company, Simon owns or manages approximately 190 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

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SOURCE Simon Property Group

CONTACT: Investors, Shelly Doran, 317-685-7330, or Media, Billie Scott, 317-263-7148, both of Simon Property Group/