News Release     

 

Contact: Jim Williams   

                 (336) 834-6800

GREENSBORO, NC - August 10, 2006, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) announced that its subsidiary, Tanger Properties Limited Partnership (TPLP), has priced its previously announced offering of exchangeable senior notes due 2026. TPLP is selling $130 million aggregate principal amount of the notes with a coupon of 3.75%. The notes will be exchangeable into Tanger Factory Outlet Centers, Inc. common shares at an initial exchange ratio, subject to adjustment, of 27.6856 shares per $1,000 principal amount of notes (or an initial exchange price of $36.1198 per common share). Up to an additional $19.5 million principal amount of notes may be issued pursuant to the underwriters’ 30 day over-allotment option. The offering is expected to close on August 16, 2006.

The notes will be senior unsecured obligations of TPLP and will be guaranteed by Tanger Factory Outlet Centers, Inc. on a senior unsecured basis. TPLP intends to use the net proceeds from the offering to repay certain mortgage debt outstanding including associated prepayment charges, unsecured revolving lines of credit and other variable rate debt. Any remaining proceeds will be used to make investments in additional properties or development of existing properties and for general corporate purposes. The notes may be exchanged at the option of holders at any time on or after August 18, 2011, and prior thereto only upon the occurrence of specified events. Upon exchange, TPLP will pay cash in an amount equal to the lesser of the exchange value and the aggregate principal amount of the notes to be exchanged, and, at the option of Tanger Factory Outlet Centers, Inc., company common shares, cash, or a combination thereof for any excess, at the applicable exchange rate. The notes will be redeemable at par at the option of TPLP on or after August 18, 2011, and noteholders may require TPLP to repurchase the notes on August 18, 2011, August 15, 2016, or August 15, 2021 at par plus any accrued and unpaid interest up to, but excluding, the repurchase date.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Copies of the prospectus and the prospectus supplement, subject to completion, relating to these securities may be obtained from Citigroup Global Markets Inc. and from Banc of America Securities LLC. You should direct any requests to Citigroup Global Markets Inc., 388 Greenwich Street, New York, New York 10013, by phone at (800) 248-3580, and/or to Banc of America Securities LLC, Capital Markets Operations, 100 West 33^rd Street, New York, New York 10001, by email at dg.prospectus_distribution@bofasecurities.com. You may also get a copy of the prospectus and the prospectus supplement, subject to completion, and other documents the company and TPLP have filed with the Securities and Exchange Commission for free by visiting the Commission’s web site at www.sec.gov.