Pershing Square Capital Management Defers Discussion on Real Estate Structuring for Target Corporation Until After the Start of 2009

Pershing Square Capital Management, L.P. announced that it will defer discussions with Target Corporation on a potential real estate transaction until after the new year.

On October 29, 2008, Pershing Square outlined a potential transaction in which Target would spin-off what it termed “Target Inflation Protected Real Estate Investment Trust” or TIP REIT, a land-only and facilities services real estate investment trust that would include substantially all of Target’s owned land.

On November 19, 2008, Pershing Square revised the transaction in a webcast that addressed the feedback it received from Target, shareholders, bondholders, and other market participants. A replay of that webcast and the accompanying presentation can be found at www.visualwebcaster.com/pstgt.

On Friday, November 21, 2008, Target issued a statement that it would not pursue the revised transaction.

“We respectfully disagree with the company’s and its advisors’ present conclusion. We believe that the revised transaction would create tremendous value and improve the company’s access to capital, with minimal risk,” said William A. Ackman of Pershing Square. “We intend to pursue the matter in the new year, after the holiday season.”

Pershing Square Capital Management, L.P., based in New York City, is a SEC registered investment advisor to private investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square have long positions in stock, options and other financial instruments tied to the performance of Target Corporation’s stock. Pershing Square has and in the future may increase, decrease, dispose of, or change the form of its investment in Target Corporation for any or no reason.