The Rouse Company Arranges $900 Million Line of Credit

COLUMBIA, Md.--(BUSINESS WIRE)--July 31, 2003--Officials of The Rouse Company (NYSE:RSE) today announced a new refinancing and increase in its unsecured corporate revolving credit facility to $900 million.

The facility, which closed on Wednesday, July 30, 2003, has a three-year term, with the Company having the option to extend it for an additional year. The interest rate has been reduced 10 basis points to LIBOR plus 90 basis points (2.01% as of the close of business on July 30, 2003). The facility also contains a competitive bid option (for up to half of the total availability), which allows the Company to hold auctions for lower pricing on short-term borrowings.

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The facility will be used to refinance the existing $450 million line of credit that was scheduled to mature on December 20, 2003. It will also be available to reduce secured property debt, fund acquisitions and new development initiatives and for general corporate purposes.

There are 23 institutions participating in the new facility, including the Joint Bookrunners and Joint Lead Arrangers, J.P. Morgan Securities Inc. and Deutsche Bank Securities. Bank One NA, will serve as Administrative Agent and Bank of America and Eurohypo as Documentation Agents. There are four Managing Agents: Commerzbank, Key Bank, U.S Bank and Wells Fargo Bank.

"We are very pleased by the favorable response of the banking community and the vote of confidence and support of the participating institutions," said Anthony W. Deering, Chairman and CEO of The Rouse Company. "The Company's strong financial position has been enhanced by the completion of this financing."

Headquartered in Columbia, Md., The Rouse Company was founded in 1939 and became a public company in 1956. A premier real estate development and management company, The Rouse Company, through its numerous affiliates, operates more than 150 properties encompassing retail, office, research and development and industrial space in 22 states. The Company is also the developer of the planned communities of Columbia, Md., and Summerlin, on the western edge of Las Vegas, Nev.

This release includes forward-looking statements, which reflect the Company's current view with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical or anticipated results. The words "believe," "expect," "anticipate" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Rouse Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a discussion of certain factors that could cause actual results to differ materially from historical or anticipated results, including real estate investment risks, development risks and changes in the economic climate, see Exhibit 99.1 of The Rouse Company's Form 10-K for the year ended December 31, 2002.