CHADDS FORD, PA--(Marketwire - May 16, 2012) - Feldman Mall Properties, Inc. (PINKSHEETS: [ FMLP ]) (the "Company") made the following announcement:

As previously announced in connection with the Company's definitive agreement dated April 23, 2012, between the Company and its operating partnership, Feldman Equities Operating Partnership, LP, and Trade Street Capital, LLC, Trade Street Property Fund I, LP, and BCOM Real Estate Fund, LLC, the Company's Board of Directors has declared a special dividend to all stockholders of record as of May 17, 2012 (the "Record Date"), in an amount equal to $0.05 per share payable upon the earlier of the date the Company sells its 9.089 acre Northgate parcel, in which case the distribution will be payable in cash no later than five business days following the closing of the sale of the property (but in no event more than 60 days after the Record Date), or 60 days after the Record Date, in which case the distribution will be payable in shares of the Company's common stock based upon a price per share of common stock equal to $0.12. Additionally, the Company's Board of Directors has approved the issuance of non-transferable warrants, to all stockholders of record as of the Record Date, to purchase 1.37 shares of common stock for each share owned by them on the Record Date at a strike price of $0.144 per share, subject to adjustment in the event of any recapitalization, reorganization, reclassification, stock split, stock dividend or reverse stock split by the Company. The warrants are exercisable for 2 years commencing on the date the Company's common stock is listed on a national securities exchange.

About Feldman Mall Properties, Inc.

The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote. For more information on Feldman Mall Properties, Inc. visit the Company website at [ www.feldmanmall.com ].