FOR IMMEDIATE RELEASE                                  FOR MORE INFORMATION CALL

December 6, 2002                               Investors:      Robert A. Brvenik
                                                             President and Chief
                                                               Financial Officer
                                                                  (410) 234-1750

                                                 Media:          Steven A. Sless
                                                                Public Relations
                                                                  (410) 234-8333



     PRIME RETAIL COMPLETES SALE OF THREE OUTLET CENTERS FOR $132.5 MILLION
               Mega Deal Loan reduced to $264.1 million at closing
    Net proceeds to be used to pay down Mezzanine Loan to approximately $5.0
                                     million

     BALTIMORE - Prime Retail,  Inc. (the "Company") (OTC Bulletin Board:  PMRE,
PMREP, PMREO) today announced the completion on December 6, 2002 of two separate
transactions  involving  the sale of three  outlet  centers for  aggregate  cash
consideration of $132.5 million.
     The  first   transaction   involved   the  sale  of  two   outlet   centers
(collectively,  the "Colorado  Properties") located in Castle Rock, Colorado and
Loveland,  Colorado,  which contain an aggregate of 808,000 square feet of gross
leasable area ("GLA").  The Colorado  Properties  were sold to TGS (U.S.) Realty
for cash  consideration of $96.0 million.  The net proceeds from the sale of the
Colorado  Properties are expected to be approximately  $12.4 million,  after (i)
required defeasance of mortgage indebtedness,  (ii) payment of closing costs and
expenses and (iii) release of certain  escrowed funds.  The Colorado  Properties
were  part  of a  collateral  package  of  fifteen  properties  that  secured  a
non-recourse  mortgage  loan (the "Mega Deal  Loan").  The Mega Deal Loan has an
interest rate of 7.782% and is scheduled to mature on November 11, 2003.
     The second  transaction  involved the sale of Prime  Outlets of Puerto Rico
(the "Puerto Rico  Property"),  an outlet center located in Barceloneta,  Puerto
Rico consisting of 176,000 square feet of GLA. The Puerto Rico Property was sold
to PR Barceloneta, LLC for cash consideration of $36.5 million. The net proceeds
from the  sale  are  expected  to be  approximately  $13.9  million,  after  (i)
repayment in full of $19.2 million of existing  first mortgage  indebtedness  on
the  Puerto  Rico  Property,  (ii)  payment  of  closing  costs and fees,  (iii)
establishment of certain escrows at closing and (iv) release of certain escrowed
funds.  The Company will  continue to manage,  market and lease Prime Outlets of
Puerto Rico pursuant to a management agreement with the new owner.

     In connection  with the sale of the Colorado  Properties,  $74.8 million of
the sales proceeds were used to partially  defease the Mega Deal Loan,  reducing
the outstanding  principal balance of the Mega Deal Loan to $264.1 million.  The
Company  expects to use the estimated net proceeds from the sale of the Colorado
Properties  and the  Puerto  Rico  Property  to  make a  principal  pay  down of
approximately  $25.2 million on a mezzanine loan (the "Mezzanine Loan") obtained
in December 2000 in the original amount of $90.0 million. After the expected pay
down, the remaining  outstanding principal balance of the Mezzanine Loan will be
approximately  $5.0  million.  As  previously  announced,  under  the terms of a
modification to the Mezzanine Loan completed on November 1, 2002, the Company is
required to make mandatory  principal  prepayments  with net proceeds from asset
sales or other capital  transactions  of not less than $12.0 million by December
31, 2002.  The pay down of the  Mezzanine  Loan with the  estimated net proceeds
from the sale of the  Colorado  Properties  and the Puerto  Rico  Property  will
satisfy this mandatory principal repayment requirement.
     Prime Retail is a  self-administered,  self-managed  real estate investment
trust engaged in the  ownership,  leasing,  marketing  and  management of outlet
centers  throughout the United States.  After the sales described herein,  Prime
Retail owns and/or manages 38 outlet centers totaling approximately 10.5 million
square feet of GLA. The Company also owns 154,000  square feet of office  space.
Prime Retail has been an owner, operator and a developer of outlet centers since
1988.   For   additional   information,   visit   Prime   Retail's   website  at
www.primeretail.com.
     Some  of the  statements  contained  herein  which  are not  statements  of
historical  facts are  forward-looking  statements  within  the  meaning  of the
Private  Securities  Litigation  Reform  Act of 1995 that  reflect  management's
current views with respect to future events and financial performance. The words
"believes,"   "expects,"   "anticipates,"   "estimates"  and  similar  words  or
expressions  are  generally  intended  to identify  forward-looking  statements.
Actual  results may differ  materially  from those  expected  because of various
risks and  uncertainties,  including,  but not  limited  to,  changes in general
economic  conditions,  adverse  changes in real estate  markets as well as other
risks and uncertainties included from time to time in the Company's filings with
the Securities and Exchange  Commission.  Prime Retail accepts no responsibility
for updating forward-looking statements.

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