Tanger Factory Outlets and Blackstone Real Estate Advisors Close on Acquisition of Charter Oak Partners Factory Outlet Portfolio for $491 Million

December 22, 2003

December 22, 2003

Tanger Finances the Majority of Its Share of Equity Through the Issuance of Common Shares Transaction is Expected to be Accretive in First Year/Balance Sheet Remains Solid Strategic Acquisition Solidifies Tanger’s Position in Factory Outlet Sector

GREENSBORO, N.C., Dec. 22 /PRNewswire-FirstCall/ – Tanger Factory Outlet Centers, Inc. (NYSE: SKT), a leading owner, developer and manager of factory outlet centers, announced today the closing of the acquisition of the Charter Oak Partners’ portfolio of nine factory outlet centers totaling approximately 3.3 million square feet. Tanger and an affiliate of Blackstone Real Estate Advisors acquired the portfolio through a joint venture in the form of a limited liability company. Tanger owns one-third and Blackstone owns two-thirds of the joint venture. Tanger is providing operating, management, leasing and marketing services to the properties for a fee.

The purchase price for this transaction was $491 million, including the assumption of approximately $187 million of debt. Tanger financed the majority of its equity in the joint venture with proceeds from the issuance of 2.3 million common shares at $40.50 per share and expects that the transaction will be accretive to its operating results in 2004. The successful equity financing will allow Tanger to maintain a strong balance sheet and its current financial flexibility. The New York-based international investment banking partnership of Compass Advisers, LLP were advisors to Tanger on the transaction. The New York based real estate company COP Holdings LLC, an affiliate of RFR Holding LLC, were advisors to Blackstone and participated in the transaction.

The factory outlets being acquired are located in: Rehoboth Beach, Delaware; Foley, Alabama; Myrtle Beach, South Carolina; Park City, Utah; Hilton Head, South Carolina; Tilton, New Hampshire; Lincoln City, Oregon; Westbrook, Connecticut and Tuscola, Illinois.

“We are excited about this acquisition because, in our opinion, it is an excellent economic fit for our shareholders, an accretive investment, and in line with our strategy of creating increased presence in high-end resort locations,” stated Stanley K. Tanger, Founder, Chairman of the Board and Chief Executive Officer of Tanger. “Adding the Tanger brand to these outstanding shopping centers creates a more recognizable shopping experience for our customers. As we have proven, based upon our 22-year historical performance, our managerial skills and marketing expertise will add value to these established centers. An extensive remerchandising strategy will be designed to enhance the centers and increase occupancy rates by adding additional upscale tenants to the existing high quality roster.”

Mr. Tanger noted that this acquisition would increase the centers owned or managed by Tanger from 31 centers with 6.1 million square feet to 40 centers with 9.3 million square feet, and solidify its position in the outlet industry. He stated that the increased size of the Tanger portfolio will diversify Tanger’s profile, build on its management skills, and enhance the company’s shareholder value. “We look forward to a long-term successful partnership with Blackstone,” Mr. Tanger added.

“We share Tanger Outlet Centers’ enthusiasm for these assets,” added Jonathan Gray, Senior Managing Director of Blackstone. “After thoroughly reviewing the portfolio and the factory outlet industry, we decided to enter into partnership with Tanger. We have a very high regard for the Tanger management team, and this investment is in keeping with our longstanding tradition of partnering with high-quality corporations,” he added.

Tanger Factory Outlets, Inc. (NYSE: SKT), a fully integrated, self- administered and self-managed publicly traded REIT, presently operates 40 centers in 23 states coast to coast, totaling approximately 9.3 million square feet of gross leasable area. For more information on Tanger, visit our web site at www.tangeroutlet.com .

About The Blackstone Group

The Blackstone Group, a private investment bank with offices in New York, London and Hamburg, was founded in 1985. Blackstone Real Estate Advisors has raised four funds representing approximately $4 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties with a total transaction value in excess of $15 billion. In addition to real estate, The Blackstone Group’s core businesses include Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Mergers & Acquisitions Advisory, and Restructuring & Reorganization Advisory.

This press release may contain forward-looking statements regarding our remerchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, operating results, funds from operations and the acquisition or development of new centers. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and local real estate conditions, the availability and cost of capital, our ability to lease our properties, our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition. For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and the Company’s current report on Form 8K/A dated December 12, 2003, which includes a proforma financial statement for the Charter Oak portfolio.

Source: Tanger Factory Outlet Centers, Inc.