PORT WASHINGTON, NY (REIT Media) April 29, 2008 - Cedar Shopping Centers, Inc. (NYSE: CDR) today announced that it has entered into a joint venture with Tristate Ventures, L.P., an affiliate of the Fameco real state group, for the development of a 137,000 sq. ft. shopping center on approximately 18 acres to be anchored by a 76,500 sq. ft. supermarket. The property is located in Stroudsburg, Pennsylvania, at the intersection of Interstate 80 and Routes 611 and 33, approximately 80 miles west of New York City near the Pennsylvania/New Jersey border.

The estimated total project cost is approximately $37 million. Cedar will be obligated for capital contributions of up to $9.5 million, of which it has currently funded approximately $5.6 million from its existing secured revolving credit facility. Cedar will be entitled to a cumulative preferred return on its invested funds and will own a 60% profits interest in the venture. A "buy-sell" may be triggered by either party three years after stabilization.

The venture previously acquired the land parcels at a cost of approximately $14.9 million, subject to existing mortgage indebtedness of approximately $11.6 million; approximately $23.2 million remains available under an existing first mortgage construction/development loan in the initial amount of $27.7 million from Wachovia Bank, N.A.

The fully-executed supermarket lease is for an initial period of 20 years with eight 5-year extension options. Lease negotiations for the balance of the center are pending.

Construction is expected to be completed in 2009. Cedar has previously announced a joint venture with Tristate Ventures, L.P. for a 700,000 sq. ft. center in Pottsgrove, Pennsylvania, which will be anchored by a Giant supermarket, as well as Target and Best Buy stores, among others.

Leo S. Ullman, Cedar's CEO, stated, "This development project, with an excellent partner, evidences the continuing successes and growth of our fine supermarket anchor tenants which, as strong operators, are performing well and expanding in these challenging times, as customers drive shorter distances to shop and favor the prepared food items and necessities available at their local markets. This development limits the risk for Cedar, while providing an attractive return for our Company."

About Cedar Shopping Centers

Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping centers in nine mid-Atlantic and New England states. The Company has realized significant growth in assets and has completed a number of developments and redevelopments of retail properties since its public offering in October 2003. The Company presently owns and operates 120 properties aggregating approximately 12.1 million square feet of gross leasable area. The Company also owns a substantial pipeline of development properties as well as approximately 356 acres in primarily development parcels.

Forward-Looking Statements

Statements made or incorporated by reference in this press release include certain "forward-looking statements". Such forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express Company's beliefs, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, expectations or intentions, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such differences include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company's market areas in particular; the financial viability of the Company's tenants; the continuing availability of suitable acquisitions, and development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital (including the availability of property-specific construction financing) in the public and private markets; changes in interest rates; the fact that returns from development, redevelopment and acquisition activities may not be at expected levels or at expected times; inherent risks in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, changes in governmental regulations related thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration of current leases; and the financial flexibility to repay or refinance debt obligations when due.