Developers Diversified Announces Pricing of Common Share Offering

CLEVELAND, Feb. 9 /PRNewswire-FirstCall/ -- Developers Diversified Realty Corporation (NYSE: DDR) today announced it has priced an offering of 37,295,000 of its common shares at a price of $8.16 per share. The offering is expected to close on February 12, 2010.

The Company intends to use the net proceeds from the offering to repay debt with short-term maturities and reduce balances on the Company's revolving credit facilities.

Morgan Stanley, J.P. Morgan, Goldman, Sachs & Co. and Wells Fargo Securities are the joint book-running managers for this offering. In addition, Citi, Deutsche Bank Securities, KeyBanc Capital Markets, Scotia Capital and UBS Investment Bank are senior co-managers, and PNC Capital Markets LLC, RBC Capital Markets, RBS, SunTrust Robinson Humphrey and The Williams Capital Group, L.P. are co-managers, for this offering. The underwriters have been granted a 30-day option to purchase up to an additional 5,594,250 common shares to cover over-allotments, if any.

A final prospectus supplement and accompanying prospectus relating to this offering will be filed with the Securities and Exchange Commission. A copy of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained from: Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by emailing [email protected], or by calling toll free at (866) 718-1649; or from J.P. Morgan via Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling toll-free at (866) 803-9204; or from Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, NY 10004, telephone: (866) 471-2526, facsimile: (212) 902-9316 or by emailing [email protected]; or from Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, NY 10152 or by e-mailing [email protected], or by calling (800) 326-5897.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective.

About Developers Diversified Realty

Developers Diversified owns and manages approximately 665 retail operating and development properties in 44 states, Brazil, Canada and Puerto Rico. Totaling more than 147 million square feet, the Company's shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company.

Cautionary Note on Forward-Looking Statements

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the Company's results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; the Company's ability to sell assets on commercially reasonable terms; the Company's ability to secure equity or debt financing on commercially acceptable terms or at all; the Company's ability to enter into definitive agreements with regard to its financing and joint venture arrangements or the Company's failure to satisfy conditions to the completion of these arrangements; the finalization of the financial statements for the year ended December 31, 2009; and the Company's ability to successfully complete this proposed public offering due to market conditions or any other reason. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's Form 10-K as of December 31, 2008. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof, unless otherwise required by law.

SOURCE Developers Diversified Realty Corporation