DDR Ddr Corp.

Developers Diversified Realty (NYSE: DDR) today announces progress on de-leveraging initiatives and provides the following updates on recent company activities:

--  Equity sale to Otto Family: The second tranche of 15 million common
    shares was sold to the Otto family for $60 million on September 18, 2009,
    completing the transaction announced in February 2009 to sell 30 million
    shares to the Otto Family.  An additional 1.8 million common shares were
    also issued, representing dividends paid since the date of the agreement.
    Warrants for an additional five million common shares were issued at the
    time of closing at $6.00 per share as per the agreement.  The warrants,
    aggregating 10 million in total, may be exercised at the discretion of the
    Otto Family any time within five years of issuance.  Additional information
    about the Otto Family and the common share sale can be found in a press
    release dated February 23, 2009.

--  New director appointment: In conjunction with the closing of the second
    tranche of equity described above, the Company's Board of Directors elected
    Dr. Thomas Finne as a new director.  Dr. Finne was appointed to the
    Dividend Declaration Committee.  The Board of Directors now consists of 11
    members, four of whom (Dr. Thomas Finne, Mr. James Boland, Mr. Daniel
    Hurwitz and Dr. Volker Kraft) have joined the Board in the past six months.

--  Equity issuance: Between August 10 and September 17, the Company sold
    approximately 18.4 million common shares for approximately $157 million
    through the common equity program established through BNY Mellon Capital
    Markets, LLC, completing the $200 million program established in late 2008.

--  Asset sales: Year to date, the Company has generated over $439 million in
    gross proceeds from asset sales, $260 million of which closed during the
    third quarter.  In conjunction with the sales this year, $151 million of
    mortgage debt was eliminated.  The Company's share of proceeds year to date
    is $289 million gross and $230 million net of mortgage debt eliminated.
    The Company has an additional $192 million of assets under contract for
    sale or subject to letter of intent, most of which are expected to close in
    2009.

--  Senior unsecured note purchases: In addition to the tender offers for
    unsecured notes that retired $250 million aggregate principal amount of
    debt on September 14 and 17, the Company purchased $38.7 million of its
    convertible senior unsecured notes in the third quarter at a weighted
    average 84% of par.  Including the notes tendered in the tender offer and
    notes bought on the open market, the total discount to par achieved was
    approximately $28 million for the third quarter and approximately $164
    million year to date.

--  Macquarie DDR Trust joint venture: The Company has liquidated its entire
    equity interest in Macquarie DDR Trust (ASX: MDT).  In addition, the
    Company anticipates that the redemption of its interest in the DDR
    Macquarie Fund in exchange for 100% ownership in three assets will occur
    early in the fourth quarter, subject to the receipt of approvals from MDT
    unitholders.  Once the redemption is complete, the Company will no longer
    share in over $1 billion of mortgage debt owed by the DDR Macquarie Fund.

--  Mortgage financing: As previously disclosed, the Company continues to
    make progress on two large mortgage financings, each secured by a pool of
    assets, and now expects that if both were completed, proceeds would exceed
    the original guidance of $600 million.  The Company expects to close on the
    first new mortgage loan of approximately $400 million early in the fourth
    quarter. The Company is working to structure a large portion of the loans
    to be TALF-eligible.

--  Operating FFO guidance lowered: As a result of these transactions that
    have reduced leverage well in excess of prior guidance, the Company has
    lowered 2009 operational guidance, excluding certain non-recurring and one-
    time items, to $1.90-$2.00 per share from $2.00-$2.15 per share.
    

David Oakes, Senior Executive Vice President of Finance and Chief Investment Officer, commented, "The above transactions and financings represent our continued commitment to improve liquidity, lower leverage and simplify our structure. We are pleased by what we have accomplished thus far in 2009 and we look forward to continuing to execute upon the capital plan that we have previously outlined."

The Company periodically evaluates opportunities to issue and sell additional debt or equity and purchase, refinance or otherwise restructure debt for strategic reasons or to further strengthen the financial position of the Company, and anticipates continuing to utilize a combination of these capital initiatives to achieve its goals of deleveraging and enhancing liquidity.

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 our 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; our ability to sell assets on commercially reasonable terms; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to successfully complete the portfolio mortgage loan transaction; our ability to successfully have our interest in DDR Macquarie Fund redeemed; and our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements. For additional factors that could cause the results of the Company to differ materially from these 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.

Developers Diversified as of June 30, 2009 owned and managed approximately 690 retail operating and development properties in 45 states, plus Puerto Rico, Brazil and Canada totaling approximately 151 million square feet. The Company is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and leases shopping centers. Additional information about Developers Diversified is available on the Internet at http://www.ddr.com.

Contact: Kate Deck Investor Relations Director Developers Diversified Realty Main: (216) 755-5500 E-mail: Email Contact