Net income (loss) allocable to common shareholders per diluted share (EPS) was $(0.05) for the quarter ended June 30, 2006 versus $(0.09) for the quarter ended June 30, 2005. EPS for the six months ended June 30, 2006 was $0.05 per diluted common share, versus $(0.04) per diluted common share for the first six months of 2005.

Taubman Centers' Adjusted Funds from Operations (FFO) per diluted share was $0.61 for the quarter ended June 30, 2006, an increase of 17.3 percent from $0.52 per diluted share for the same period last year. For the six months ended June 30, 2006, Adjusted FFO per diluted share was $1.23, up 12.8 percent from $1.09 for the first six months of 2005. Adjusted FFO excludes financing-related charges that were incurred during the first and second quarters of 2006.

Taubman Centers' FFO per diluted share was $0.55 for the quarter ended June 30, 2006, an increase of 5.8 percent from $0.52 per diluted share for the second quarter of 2005. For the six months ended June 30, 2006, FFO per diluted share was $1.15, up 5.5 percent from $1.09 for the first six months of 2005.

"This strong performance was due to growth in rents and recoveries at our centers, the continuing contribution from last year's opening of Northlake Mall (Charlotte, N.C.), increased land sale gains during the quarter and interest income from the cash on our balance sheet," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers.

Robust Tenant Sales

Mall tenant sales per square foot gained momentum during the second quarter, increasing 8.5 percent for the quarter and 6.9 percent for the year- to-date period. "We've now experienced strong sales performance at our centers for over three years," said Mr. Taubman. "Clearly consumers are continuing to favor our regional malls. During this quarter, the categories of women's apparel and accessories, children's apparel, jewelry, electronics and sit down restaurants showed double-digit sales per square foot growth across our portfolio. This sales strength continues to drive retailer confidence and leasing in our centers."

Leased space at June 30, 2006 was 91.8 percent, up 0.9 percent from June 30, 2005. Total occupancy for the portfolio was 89.0 percent at June 30, 2006, up 0.3 percent from June 30, 2005.

Strong Balance Sheet

During May, the company refinanced Cherry Creek Shopping Center (Denver, Colo.). The new $280 million, 10-year non-recourse, interest-only loan carries an interest rate of 5.24 percent and was used to pay off the existing $173 million 7.68 percent loan.

Also during the quarter, the company redeemed its $113 million 8.30% Series A Preferred Stock with Series I Preferred Stock and at the end of the quarter, redeemed that issue with available cash. The company incurred a charge of $4.7 million (or $0.055 FFO per share) during the second quarter representing the difference between the carrying values and redemption prices of each issue. In future periods, these transactions are expected to increase FFO per share by $0.03 to $0.04 per annum, as the preferred stock has been replaced with lower cost debt. The company continues to have $217 million of other classes of preferred equity outstanding.

"At June 30, we reported $79 million of cash on our balance sheet," said Lisa A. Payne, vice chairman and chief financial officer of Taubman Centers. "In August, we plan to repay the existing $140 million floating rate loan on Dolphin Mall (Miami, Fla.) with available cash and a portion of our currently unused $390 million credit facilities. This culminates our efforts to reduce floating rate debt, which subsequent to the Dolphin Mall payoff will be approximately 4 percent of our total debt. Our average fixed interest rate is currently 5.67 percent and we have a laddered maturity schedule that extends to 2016. These transactions clearly demonstrate how strong real estate with growing cash flows generates capital."

The Pier at Caesars Opens

The Pier at Caesars (Atlantic City, N.J.) opened its doors in late June. This center, built on a pier 900 feet into the Atlantic Ocean is steadily rolling out additional stores and restaurants throughout the summer and into the fall. At its completion, The Pier at Caesars will be home to over 100 mid to high-end luxury retailers and restaurants. The center has 35 stores open to date including Gucci, Coach, Louis Vuitton, Bottega Veneta, Salvatore Ferragamo and Tourneau. Openings next week include Tiffany & Co., Apple, Armani Exchange and several others. The Pier will also offer an exciting restaurant lineup including Stephen Starr's Buddakan and The Continental, Jeffrey Chodorow's rumjungle, and Patrick Lyon's Game On, Sonsie and The Trinity Pub. The center is over 95 percent leased and committed and is anticipated to be about 80 percent occupied by year end. Taubman Centers will have a 30 percent interest in The Pier, a project that will transform Atlantic City's retail and dining experience.

Increased Guidance

The company is increasing its guidance for 2006 FFO per share to the range of $2.43 to $2.48 and Adjusted FFO per share to the range of $2.52 to $2.57. Adjusted FFO excludes financing-related charges for the paydown of The Shops at Willow Bend (Plano, Texas) loans in the first quarter, the refinancing of the 8.30% Series A Preferred Stock and the payoff of the Series I Preferred Stock in the second quarter, and a previously announced $1 million charge relating to the payoff of the loan on Dolphin Mall anticipated in the third quarter.

Net Income (loss) allocable to common shareholders for the year is expected to be in the range of $0.36 to $0.57 per share.

Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online at http://www.taubman.com under "Investor Relations." This includes the following:

* Income Statements

* Earnings Reconciliations

* Changes in Funds from Operations and Earnings Per Share

* Components of Other Income, Other Operating Expense and Gains on Land

Sales and Interest Income

* Balance Sheets

* Debt Summary

* Other Debt and Equity Information

* Construction and Center Openings

* Capital Spending

* Divestitures

* Operational Statistics

* Owned Centers

* Major Tenants in Owned Portfolio

* Anchors in Owned Portfolio

Investor Conference Call

The company will host a conference call on July 28 at 10:00 a.m. (EDT) to discuss these results and will simulcast the conference call at http://www.taubman.com under "Investor Relations" as well as http://www.earnings.com and http://www.streetevents.com . The online replay will follow shortly after the call and continue for approximately 90 days. In addition, the conference call will be available as a podcast at http://www.reitcafe.com .

Taubman Centers, Inc., a real estate investment trust, owns and/or manages 23 urban and suburban regional and super regional shopping centers in 11 states. In addition, The Mall at Partridge Creek is under construction and scheduled to open in October 2007. Taubman Centers is headquartered in Bloomfield Hills, Mich.

This press release contains forward-looking statements within the meaning of the Securities Act of 1933 as amended. These statements reflect management's current views with respect to future events and financial performance. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to changes in general economic and real estate conditions, changes in the interest rate environment and availability of financing, and adverse changes in the retail industry. Other risks and uncertainties are discussed in the company's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.

TAUBMAN CENTERS, INC.

Table 1 - Summary of Results

For the Three and Six Months Ended June 30, 2006 and 2005

(in thousands of dollars, except as indicated)

Three Months Six Months

Ended June 30 Ended June 30

2006 2005 2006 2005

Income before minority and

preferred interests (1) 20,972 11,227 42,380 29,443

Minority share of

consolidated joint

ventures (2) (3,671) (10) (4,132) (16)

Minority share of income

of TRG (2) (2,780) (2,364) (8,497) (7,529)

Distributions in excess of

minority share of income

of TRG (6,115) (6,602) (9,296) (10,612)

TRG preferred

distributions (615) (615) (1,230) (1,230)

Net income 7,791 1,636 19,225 10,056

Preferred dividends (3) (10,403) (6,150) (16,406) (12,300)

Net income (loss)

allocable to common

shareowners (2,612) (4,514) 2,819 (2,244)

Net income (loss) per

common share - basic and

diluted (0.05) (0.09) 0.05 (0.04)

Beneficial interest in

EBITDA - consolidated

businesses (4) (5) 71,926 57,970 144,629 118,838

Beneficial interest in

EBITDA - unconsolidated

joint ventures (4) (5) 21,389 26,278 43,757 52,946

Funds from Operations (4) 45,410 42,562 94,530 89,134

Funds from Operations

allocable to TCO (4) 29,563 26,522 61,145 55,053

Funds from Operations per

common share - basic (4) 0.56 0.52 1.17 1.10

Funds from Operations per

common share - diluted (4) 0.55 0.52 1.15 1.09

Weighted average number of

common shares

outstanding-basic 52,782,144 50,520,169 52,456,890 50,084,438

Weighted average number of

common shares outstanding

-diluted 52,782,144 50,520,169 52,701,933 50,084,438

Common shares outstanding

at end of period 52,786,236 50,697,418

Weighted average units -

Operating Partnership -

basic 81,076,833 81,074,086 81,076,598 81,054,654

Weighted average units -

Operating Partnership -

diluted 82,215,216 81,956,693 82,192,903 82,005,515

Units outstanding at end

of period - Operating

Partnership 81,078,342 81,074,098

Ownership percentage of

the Operating Partnership

at end of period 65.1% 62.5%

Number of owned shopping

centers at end of period 22 21 22 21

Operating Statistics (6):

Mall tenant sales 989,275 913,408 1,916,414 1,799,299

Mall tenant sales -

comparable (7) 943,352 878,807 1,824,544 1,721,213

Ending occupancy (8) 89.0% 88.7% 89.0% 88.7%

Ending occupancy -

comparable (7) (8) 88.7% 88.7% 88.7% 88.7%

Average occupancy (8) 88.7% 88.5% 88.5% 88.5%

Average occupancy -

comparable (7) (8) 88.6% 88.6% 88.5% 88.6%

Leased space at end of

period (8) 91.8% 90.9% 91.8% 90.9%

Leased space at end of

period - comparable (7) (8) 91.6% 91.0% 91.6% 91.0%

Mall tenant occupancy

costs as a percentage of

tenant sales-consolidated

businesses (5) 15.6% 15.9% 15.6% 15.9%

Mall tenant occupancy

costs as a percentage of

tenant sales-

unconsolidated joint

ventures (5) 13.4% 14.3% 13.6% 14.4%

Rent per square foot -

consolidated

businesses (5) (7) 43.28 41.72 43.22 41.60

Rent per square foot -

unconsolidated joint

ventures (5) (7) 41.12 42.64 41.48 42.62

(1) Income before minority and preferred interests for the six months ended June 30, 2006 includes a $2.1 million charge incurred in connection with the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date.

(2) Because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures are less than zero, the income allocated to the minority and outside partners during the three months and six months ended June 30, 2006 and 2005 is equal to their share of distributions. The net equity of these minority partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.

(3) Preferred dividends for the three and six months ended June 30, 2006 include charges of $4.0 million and $0.6 million incurred in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively.

(4) Beneficial Interest in EBITDA represents the Operating Partnership's share of the earnings before interest and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes Beneficial Interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure.

The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. FFO is primarily used by the Company in measuring performance and in formulating corporate goals and compensation.

These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use common definitions. None of these non-GAAP measures should be considered alternatives to net income as an indicator of the Company's operating performance, and they do not represent cash flows from operating, investing, or financing activities as defined by GAAP.

As previously reported for 2005, because of a change in the Company's business practice to offer its tenants the option to pay a fixed charge or pay their share of common area maintenance (CAM) costs and related change to contractual terms of leases, the Company began adding back in the fourth quarter of 2005 all depreciation on CAM assets to calculate EBITDA and FFO, including depreciation on CAM assets that were recovered from tenants in the period of acquisition and depreciated over the recovery period. The Company has restated previously reported amounts in order to be comparable with 2006 amounts. For the three months ended June 30, 2006 and 2005, TRG's beneficial interest in the depreciation of center replacement assets that were reimbursed in the period of acquisition for its Consolidated Businesses and Unconsolidated Joint Ventures was $1.4 million and $0.6 million, respectively (in total, $0.025 per share) and $1.8 million and $0.3 million, respectively (in total, $0.025 per share). For the six months ended June 30, 2006 and 2005, TRG's beneficial interest in the depreciation of center replacement assets that were reimbursed in the period of acquisition for its Consolidated Businesses and Unconsolidated Joint Ventures was $1.5 million and $0.7 million, respectively (in total, $0.025 per share) and $2.0 million and $0.6 million, respectively (in total, $0.030 per share). The Company's share of depreciation on all CAM capital expenditures, which were previously included as a component of recoverable expenses, was $3.8 million and $4.0 million for the three months ended June 30, 2006 and 2005, respectively, and $5.7 million and $6.4 million for the six months ended June 30, 2006 and 2005, respectively.

(5) The results of Cherry Creek Shopping Center are presented within the Consolidated Businesses for periods beginning January 1, 2006, as a result of the Company's adoption of EITF 04-5. Results of Cherry Creek prior to 2006 are included within the Unconsolidated Joint Ventures.

(6) All operating statistics exclude The Pier at Caesars, which opened in late June 2006.

(7) Statistics exclude Northlake Mall, Waterside Shops at Pelican Bay, and Woodland. 2005 statistics have been restated to include comparable centers to 2006.

(8) Statistics include anchor spaces at value centers (Arizona Mills, Dolphin Mall, and Great Lakes Crossing).

TAUBMAN CENTERS, INC.

Table 2 - Income Statement (1)

For the Quarters Ended June 30, 2006 and 2005

(in thousands of dollars)

2006

UNCONSOLIDATED

CONSOLIDATED JOINT

BUSINESSES VENTURES(2)

REVENUES:

Minimum rents 76,587 35,896

Percentage rents 709 786

Expense recoveries 52,152 20,427

Management, leasing and

development services 3,160

Other 6,668 1,175

Total revenues 139,276 58,284

EXPENSES:

Maintenance, taxes and utilities 40,485 14,237

Other operating 16,476 5,919

Management, leasing and

development services 1,527

General and administrative 7,546

Interest expense 31,871 13,353

Depreciation and amortization (3) 33,315 10,242

Total expenses 131,220 43,751

Gains on land sales and interest

income 5,504 270

13,560 14,803

Equity in income of Unconsolidated

Joint Ventures 7,412

Income before minority and preferred

interests 20,972

Minority and preferred interests:

TRG preferred distributions (615)

Minority share of consolidated

joint ventures (3,671)

Minority share of income of TRG (2,780)

Distributions in excess of

minority share of income of TRG (6,115)

Net income 7,791

Preferred dividends (4) (10,403)

Net income (loss) allocable to

common shareowners (2,612)

SUPPLEMENTAL INFORMATION (5):

EBITDA - 100% 78,746 38,398

EBITDA - outside partners' share (6,820) (17,009)

Beneficial interest in EBITDA 71,926 21,389

Beneficial interest expense (28,658) (7,617)

Non-real estate depreciation (612)

Preferred dividends and

distributions (11,018)

Funds from Operations

contribution 31,638 13,772

Net straightline adjustments to

rental revenue, recoveries,

and ground rent expense at TRG % 197 298

TAUBMAN CENTERS, INC.

Table 2 - Income Statement (1)

For the Quarters Ended June 30, 2006 and 2005

(in thousands of dollars)

2005

UNCONSOLIDATED

CONSOLIDATED JOINT

BUSINESSES VENTURES(2)

REVENUES:

Minimum rents 63,300 46,024

Percentage rents 721 343

Expense recoveries 41,222 24,239

Management, leasing and

development services 3,334

Other 8,629 1,786

Total revenues 117,206 72,392

EXPENSES:

Maintenance, taxes and utilities 32,161 17,704

Other operating 16,164 7,192

Management, leasing and

development services 2,125

General and administrative 7,786

Interest expense 26,492 16,742

Depreciation and amortization (3) 33,570 12,312

Total expenses 118,298 53,950

Gains on land sales and interest

income 2,947 162

1,855 18,604

Equity in income of Unconsolidated

Joint Ventures 9,372

Income before minority and preferred

interests 11,227

Minority and preferred interests:

TRG preferred distributions (615)

Minority share of consolidated

joint ventures (10)

Minority share of income of TRG (2,364)

Distributions in excess of

minority share of income of TRG (6,602)

Net income 1,636

Preferred dividends (4) (6,150)

Net income (loss) allocable to

common shareowners (4,514)

SUPPLEMENTAL INFORMATION (5):

EBITDA - 100% 61,917 47,658

EBITDA - outside partners' share (3,947) (21,380)

Beneficial interest in EBITDA 57,970 26,278

Beneficial interest expense (25,108) (9,318)

Non-real estate depreciation (495)

Preferred dividends and

distributions (6,765)

Funds from Operations

contribution 25,602 16,960

Net straightline adjustments to

rental revenue, recoveries,

and ground rent expense at TRG % 307 206

(1) The results of Cherry Creek Shopping Center are presented within the Consolidated Businesses for periods beginning January 1, 2006, as a result of the Company's adoption of EITF 04-5. Results of Cherry Creek prior to 2006 are included within the Unconsolidated Joint Ventures. In addition, in 2006 the Company modified its income statement presentation for depreciation of center replacement assets, revenues and expense related to marketing and promotion services, and gains on land sales and interest income. As a result, certain reclassifications have been made to prior year amounts to conform to current year classifications.

(2) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest. In its consolidated financial statements, the Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.

(3) Included in depreciation and amortization of the Consolidated Businesses and Unconsolidated Joint Ventures (both at 100%) are $3.0 million and $1.4 million, respectively, of depreciation of center replacement assets for the three months ended June 30, 2006, and $3.3 million and $1.5 million, respectively, for the three months ended June 30, 2005.

(4) Preferred dividends for the three months ended June 30, 2006 include charges of $4.0 million and $0.6 million incurred in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively.

(5) In order to be comparable to 2006 amounts, EBITDA and FFO for the three months ended June 30, 2005 have been restated from amounts previously reported to include an add-back of depreciation of center replacement assets reimbursed in the period of acquisition. See Note 4 to Table 1 of this release.

TAUBMAN CENTERS, INC.

Table 3 - Income Statement (1)

For the Year to Date Periods Ended June 30, 2006 and 2005

(in thousands of dollars)

2006

UNCONSOLIDATED

CONSOLIDATED JOINT

BUSINESSES VENTURES(2)

REVENUES:

Minimum rents 152,582 70,430

Percentage rents 3,599 1,714

Expense recoveries 97,045 38,499

Management, leasing and

development services 6,083

Other 17,988 5,965

Total revenues 277,297 116,608

EXPENSES:

Maintenance, taxes and utilities 75,283 27,619

Other operating 33,071 11,161

Management, leasing and

development services 3,045

General and administrative 14,470

Interest expense (3) 66,154 26,595

Depreciation and amortization (4) 66,704 20,424

Total expenses 258,727 85,799

Gains on land sales and interest

income 7,927 522

26,497 31,331

Equity in income of Unconsolidated

Joint Ventures 15,883

Income before minority and preferred

interests 42,380

Minority and preferred interests:

TRG preferred distributions (1,230)

Minority share of consolidated

joint ventures (4,132)

Minority share of income of TRG (8,497)

Distributions in excess of

minority share of income of TRG (9,296)

Net income 19,225

Preferred dividends (5) (16,406)

Net income (loss) allocable to common

shareowners 2,819

SUPPLEMENTAL INFORMATION (6):

EBITDA - 100% 159,355 78,350

EBITDA - outside partners' share (14,726) (34,593)

Beneficial interest in EBITDA 144,629 43,757

Beneficial interest expense (59,864) (15,173)

Non-real estate depreciation (1,183)

Preferred dividends and

distributions (17,636)

Funds from Operations contribution 65,946 28,584

Net straightline adjustments to

rental revenue, recoveries,

and ground rent expense at TRG % 171 223

TAUBMAN CENTERS, INC.

Table 3 - Income Statement (1)

For the Year to Date Periods Ended June 30, 2006 and 2005

(in thousands of dollars)

2005

UNCONSOLIDATED

CONSOLIDATED JOINT

BUSINESSES VENTURES(2)

REVENUES:

Minimum rents 126,378 91,265

Percentage rents 2,417 1,662

Expense recoveries 78,782 47,111

Management, leasing and

development services 5,534

Other 16,252 4,825

Total revenues 229,363 144,863

EXPENSES:

Maintenance, taxes and utilities 62,159 33,737

Other operating 29,589 14,866

Management, leasing and

development services 3,320

General and administrative 13,745

Interest expense (3) 52,032 33,517

Depreciation and amortization (4) 63,069 25,892

Total expenses 223,914 108,012

Gains on land sales and interest

income 5,552 274

11,001 37,125

Equity in income of Unconsolidated

Joint Ventures 18,442

Income before minority and preferred

interests 29,443

Minority and preferred interests:

TRG preferred distributions (1,230)

Minority share of consolidated

joint ventures (16)

Minority share of income of TRG (7,529)

Distributions in excess of

minority share of income of TRG (10,612)

Net income 10,056

Preferred dividends (5) (12,300)

Net income (loss) allocable to common

shareowners (2,244)

SUPPLEMENTAL INFORMATION (6):

EBITDA - 100% 126,102 96,534

EBITDA - outside partners' share (7,264) (43,588)

Beneficial interest in EBITDA 118,838 52,946

Beneficial interest expense (49,382) (18,647)

Non-real estate depreciation (1,091)

Preferred dividends and

distributions (13,530)

Funds from Operations contribution 54,835 34,299

Net straightline adjustments to

rental revenue, recoveries,

and ground rent expense at TRG % 796 124

(3) Interest expense for the six months ended June 30, 2006 includes a $2.1 million charge representing the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date.

(4) Included in depreciation and amortization of the Consolidated Businesses and Unconsolidated Joint Ventures (both at 100%) are $4.7 million and $2.1 million, respectively, of depreciation of center replacement assets for the six months ended June 30, 2006, and $5.0 million and $3.0 million, respectively, for the six months ended June 30, 2005.

(5) Preferred dividends for the six months ended June 30, 2006 include charges of $4.0 million and $0.6 million incurred in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively.

(6) In order to be comparable to 2006 amounts, EBITDA and FFO for the six months ended June 30, 2005 have been restated from amounts previously reported to include an add-back of depreciation of center replacement assets reimbursed in the period of acquisition. See Note 4 to Table 1 of this release.

TAUBMAN CENTERS, INC.

Table 4 - Reconciliation of Net Income (Loss) Allocable to Common

Shareowners to Funds from Operations and Adjusted Funds from Operations

For the Periods Ended June 30, 2006 and 2005

(in thousands of dollars; amounts allocable to TCO may not recalculate due

to rounding)

Three Months Ended Year to Date

2006 2005 2006 2005

Net income (loss) allocable to common

shareowners (2,612) (4,514) 2,819 (2,244)

Add (less) depreciation and

amortization (1):

Consolidated businesses at 100% 33,315 33,570 66,704 63,069

Minority partners in consolidated

joint ventures (2,874) (2,594) (5,997) (4,678)

Share of unconsolidated joint

ventures 6,360 7,588 12,701 15,857

Non-real estate depreciation (612) (495) (1,183) (1,091)

Add minority interests:

Minority share of income of TRG 2,780 2,364 8,497 7,529

Distributions in excess of

minority share of income of TRG 6,115 6,602 9,296 10,612

Distributions in excess of

minority share of income of

consolidated joint ventures 2,938 41 1,693 80

Funds from Operations 45,410 42,562 94,530 89,134

TCO's average ownership percentage of

TRG 65.1% 62.3% 64.7% 61.8%

Funds from Operations allocable to

TCO 29,563 26,522 61,145 55,053

Funds from Operations (1) (2) 45,410 42,562 94,530 89,134

Charge upon redemption of Series A

Preferred Stock 4,045 4,045

Charge upon redemption of Series I

Preferred Stock 607 607

Write-off of financing costs 2,065

Adjusted Funds from Operations (2) 50,062 42,562 101,247 89,134

TCO's average ownership percentage of

TRG 65.1% 62.3% 64.7% 61.8%

Adjusted Funds from Operations

allocable to TCO (2) 32,591 26,522 65,500 55,053

(1) Depreciation and amortization includes depreciation of center replacement assets recoverable from tenants, which were previously classified as recoverable expenses in the Company's financial statements. TRG's beneficial interest in these amounts are $3.8 million and $4.0 million for the three months ended June 30, 2006 and 2005, respectively, and $5.7 million and $6.4 million for the six months ended June 30, 2006 and 2005, respectively. In order to be comparable to 2006 amounts, 2005 amounts have been restated to include depreciation of center replacement assets that were reimbursed in the period of acquisition. See Note 4 to Table 1 of this release.

(2) Adjusted FFO excludes the following unusual and/or nonrecurring items: charges of $4.0 million ($0.050 per share) and $0.6 million ($0.005 per share) incurred during the second quarter of 2006 in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively, and a $2.1 million ($0.025 per share) charge during the first quarter of 2006 in connection with the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date. The Company discloses this Adjusted FFO due to the significance and infrequent nature of the charges. Given the significance of the charges, the Company believes it is essential to a reader's understanding of the Company's results of operations to emphasize the impact on the Company's earnings measures. The adjusted measures are not and should not be considered alternatives to net income or cash flows from operating, investing, or financing activities as defined by GAAP.

TAUBMAN CENTERS, INC.

Table 5 - Reconciliation of Net Income to Beneficial Interest in EBITDA

For the Periods Ended June 30, 2006 and 2005

(in thousands of dollars; amounts allocable to TCO may not recalculate

due to rounding)

Three Months Ended Year to Date

2006 2005 2006 2005

Net income 7,791 1,636 19,225 10,056

Add (less) depreciation and

amortization (1):

Consolidated businesses at 100% 33,315 33,570 66,704 63,069

Minority partners in consolidated

joint ventures (2,874) (2,594) (5,997) (4,678)

Share of unconsolidated joint

ventures 6,360 7,588 12,701 15,857

Add (less) preferred interests and

interest expense:

Preferred distributions 615 615 1,230 1,230

Interest expense:

Consolidated businesses at 100% 31,871 26,492 66,154 52,032

Minority partners in

consolidated joint ventures (3,213) (1,384) (6,290) (2,650)

Share of unconsolidated joint

ventures 7,617 9,318 15,173 18,647

Add minority interests:

Minority share of income of TRG 2,780 2,364 8,497 7,529

Distributions in excess of

minority share of income of TRG 6,115 6,602 9,296 10,612

Distributions in excess of

minority share of income of

consolidated joint ventures 2,938 41 1,693 80

Beneficial Interest in EBITDA 93,315 84,248 188,386 171,784

TCO's average ownership percentage of

TRG 65.1% 62.3% 64.7% 61.8%

Beneficial Interest in EBITDA

allocable to TCO 60,749 52,498 121,875 106,125

(1) Depreciation and amortization includes depreciation of center replacement assets recoverable from tenants, which were previously classified as recoverable expenses in the Company's financial statements. In order to be comparable to 2006 amounts, 2005 amounts have been restated to include depreciation of center replacement assets that were reimbursed in the period of acquisition. See Note 4 to Table 1 of this release.

TAUBMAN CENTERS, INC.

Table 6 - Balance Sheets

As of June 30, 2006 and December 31, 2005

(in thousands of dollars)

As of

June 30, 2006 December 31, 2005

Consolidated Balance Sheet of Taubman

Centers, Inc. (1):

Assets:

Properties 3,311,749 3,081,324

Accumulated depreciation and

amortization (766,109) (651,665)

2,545,640 2,429,659

Investment in Unconsolidated Joint

Ventures 109,316 106,117

Cash and cash equivalents 79,091 163,577

Accounts and notes receivable, net 32,821 41,717

Accounts and notes receivable from

related parties 3,782 2,400

Deferred charges and other assets 101,910 54,110

2,872,560 2,797,580

Liabilities:

Notes payable 2,377,494 2,089,948

Accounts payable and accrued

liabilities 213,952 235,410

Dividends and distributions payable 16,099 15,819

Distributions in excess of

investments in and net income of

Unconsolidated Joint Ventures 94,078 101,028

2,701,623 2,442,205

Preferred Equity of TRG 29,217 29,217

Shareowners' Equity:

Series A Cumulative Redeemable

Preferred Stock 45

Series B Non-Participating

Convertible Preferred Stock 28 29

Series G Cumulative Redeemable

Preferred Stock

Series H Cumulative Redeemable

Preferred Stock

Common Stock 528 519

Additional paid-in capital 580,326 739,090

Accumulated other comprehensive

income (loss) (5,144) (9,051)

Dividends in excess of net income (434,018) (404,474)

141,720 326,158

2,872,560 2,797,580

Combined Balance Sheet of

Unconsolidated Joint Ventures (2):

Assets:

Properties 922,456 1,076,743

Accumulated depreciation and

amortization (303,915) (363,394)

618,541 713,349

Cash and cash equivalents 28,283 33,498

Accounts and notes receivable 14,615 23,189

Deferred charges and other assets 17,189 24,458

678,628 794,494

Liabilities:

Notes payable 820,420 999,545

Accounts payable and other

liabilities 39,535 59,322

859,955 1,058,867

Accumulated Deficiency in Assets:

Accumulated deficiency in assets - TRG (138,269) (170,124)

Accumulated deficiency in assets -

Joint Venture Partners (40,226) (91,179)

Accumulated other comprehensive

income (loss) - TRG (2,242) (2,430)

Accumulated other comprehensive

income (loss) - Joint Venture

Partners (590) (640)

(181,327) (264,373)

678,628 794,494

(1) The June 30, 2006 balance sheet amounts include Cherry Creek Shopping Center, which the Company began consolidating upon the adoption of EITF 04-5 on January 1, 2006. The effect of adopting EITF 04-5 on the January 1, 2006 balance sheet was an increase in assets of approximately $128 million and liabilities of approximately $180 million, and a $52 million reduction of additional paid-in capital, representing the cumulative effect of change in accounting principle.

(2) Amounts exclude The Pier at Caesars, which TRG made a $4 million contribution to in January 2005. Amounts as of June 30, 2006 also exclude Cherry Creek Shopping Center, which the Company began consolidating upon the adoption of EITF 04-5.

TAUBMAN CENTERS, INC.

Table 7 - 2006 Earnings Guidance

(all dollar amounts per common share on a diluted basis; amounts may not

add due to rounding)

Range for Year

Ended

December 31, Range

2006 Before for Year

Equity and Equity and Ended

Financing Financing December 31,

Costs Costs(1) 2006

Guidance for Funds from Operations

per common share 2.52 2.57 (0.09) 2.43 2.48

Real estate depreciation - TRG (1.68) (1.59) (1.68) (1.59)

Depreciation of TCO's additional basis

in TRG (0.13) (0.13) (0.13) (0.13)

Distributions in excess of earnings

allocable to minority interest (0.21) (0.13) (0.05) (0.26) (0.19)

Guidance for net income (loss)

allocable to common shareholders,

per common share 0.51 0.72 (0.15) 0.36 0.57

(1) The Company recognized a charge of $2.1 million during the first quarter of 2006 in connection with the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend. The Company also recognized charges of $4.7 million during the second quarter of 2006 in connection with the redemption of the Series A and Series I Preferred Stock. The Company expects to recognize a charge of $1.0 million during the third quarter of 2006 in connection with the write-off of financing costs related to the pay-off of the loan on Dolphin Mall, when it becomes prepayable in August 2006.

Source: prnewswire