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MORTON NAMED PRESIDENT OF FACTORY STORES, OUTLET TRADE GROUP; Outlet Retailers Endorse Senior Management Additions; Factory Stores Opens Designer Stores

MORTON NAMED PRESIDENT OF FACTORY STORES, OUTLET TRADE GROUP; Outlet Retailers Endorse Senior Management Additions; Factory Stores Opens Designer Stores

SMITHFIELD, N.C.–(BUSINESS WIRE)–Jan. 17, 1996–Factory Stores of America, Inc. (NYSE:FAC) announced that C. Cammack Morton was elected to the Board of Directors and named president in addition to his responsibilities as chief operating officer.

Morton, the former chairman, president and chief executive officer of Charter Oak, and a former managing director of Rothschild Realty, joined Factory Stores as chief operating officer on November 9, 1995. Morton replaces David A. Hodson, who resigned as president effective December 31, 1995. The Company also announced that Morton was recently elected to the position of president of the Developers of Outlet Council (DOC), the industry’s trade association.

“Despite our disappointment in not completing the Charter Oak merger and the acquisition of the outlet centers it managed for Rothschild Realty, we believe we have achieved one of the key positive objectives of the merger with the addition of Camm,” said J. Dixon Fleming, Jr., chairman and chief executive officer of Factory Stores. “He will increase the depth and breadth of our management team and will have the opportunity to participate in the future growth of Factory Stores.”

Factory Stores recently opened its first Liz Claiborne outlet store along with several other new outlets including Carole Little, Nine West and Mikasa at its Smithfield, North Carolina outlet center, highlighting the Company’s successful strategy of augmenting the current mix of American-branded tenants with upscale, designer names.

“Much of the new willingness of designer tenants to select Factory Stores for new store openings can be attributed to the strong relationships which Camm Morton has developed over the years,” Fleming added.

In response to the announced termination of the merger and the addition of Morton to Factory Stores’ management, Bob Negron, president of the Liz Claiborne Outlet Stores Division, said, “In outlet center development, the key success factor will not be the size of your portfolio but the quality of your locations and management team. In Camm Morton, Factory Stores has added a senior executive with the vision, operational skills and drive to consistently improve the performance of their existing outlet centers as well as the size of their eventual portfolio.”

Several other designer anchor tenants who are not currently tenants with Factory Stores, such as Polo, Nautica, Tommy Hilfiger and Ann Taylor, have successful stores which they developed with Morton in his previous role with Charter Oak. Negron spoke favorably of Morton’s track record. “The positive relationships which Camm brings to Factory Stores should be helpful in bringing new tenants to their portfolio which should complement the existing tenant mix, thus enhancing the productivity of their centers.”

“The election of Camm as president of the DOC reflects the high level of confidence and respect he enjoys within the industry,” said Joe Shannon, president of Bugle Boy Industries, and current president of the Manufacturer’s Idea Exchange (MIE). “I am very happy that Camm was named president and chief operating officer of Factory Stores. I have known him for a long time and feel that his industry knowledge, insight, reputation and integrity will only strengthen the largest developer in our industry.” Shannon and Morton work closely together, each as president of their respective branches of the industry’s professional associations. The DOC and MIE work in conjunction to provide enhanced opportunities for education and exposure in the Value Retailing Industry.

Morton has been involved in the shopping center industry for more than 15 years. Prior to founding Charter Oak in 1989, Morton was president of retail development for Western Development Corp. (now the Mills Corp.), where he was instrumental in the development of “The Mills Concept” and part of the team that created Potomac Mills in suburban Washington, D.C., now the number one tourist attraction in the state of Virginia. At Kravco, where he was vice president, development, Morton had responsibility for regional mall development and redevelopment as well as department store relationships and activities. At Federal Realty Investment Trust, which specialized in shopping center acquisition and redevelopment, Morton headed up the development division overseeing all of the redevelopment projects and helped establish the management and leasing company, Federal Realty Management which has since been folded into Federal Realty.

Factory Stores of America, a self-administered real estate investment trust, is one of the largest factory outlet REITs in terms of numbers of centers and square footage. Headquartered in Smithfield, North Carolina, the Factory Stores’ portfolio at December 31, 1995, included 36 centers in operation totaling 4.7 million square feet of gross leasable area in 21 states.

CONTACT: Factory Stores of America, Inc., Smithfield

Janet L. Grady, 919/934-9446, ext. 3006

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