Arvida, a St. Joe Company, Breaks Ground On SouthWood; Northwest Florida's Largest Master-Planned Community Honors Architecture and Culture of the Region.

Business Editors

TALLAHASSEE, Fla--(BUSINESS WIRE)--Sept. 19, 2000

Arvida, the community development arm of The St. Joe Company (NYSE:JOE), held a ceremonial groundbreaking today at SouthWood, the largest and most comprehensively planned community in Florida's capital region. Set on 3,200 acres of rolling hills, open pastures, natural lakes and towering oaks, SouthWood is located in Tallahassee, just four miles from Florida's capitol. Infrastructure construction is underway and sales have begun for SouthWood's first release of 134 single-family homes and 60 townhomes.

SouthWood offers the appeal of being located in a vibrant, college town with close access to lakes, rivers and the Gulf of Mexico. In addition to educational opportunities, Tallahassee's two nationally recognized universities and community college provide a wealth of arts and entertainment programs that complement the area's array of cultural events. A mild change of season allows people to enjoy a variety of leisure activities, including boating, hunting, fishing and sporting events, year round. By creating a new living environment in Tallahassee, SouthWood provides a change of pace to those who want to escape the hustle and bustle of life in a larger city, while staying connected to all the things they enjoy.

"SouthWood is being developed on a foundation that is authentic," said James D. Motta, president and CEO of Arvida. "Our goal is to build a community that respects the history, the regional culture and the environment of the land that is being developed.

"We want to preserve the traditional college town feel at SouthWood, while creating homes for people there who support the work world of today - and tomorrow," said Motta. "Creating special places that add value to the broader community, that add value to people's lives, is the best strategy for creating value for our shareholders.

"Tallahassee is a hidden jewel tucked away in the rolling hills of north Florida, a truly wonderful and different Florida," said Motta. "There is no end to the potential of this warm and friendly college town. Arvida and St. Joe look forward to promoting the area, and being a part of the broader community for a long time to come."

Close proximity to downtown Tallahassee, the state capitol complex, Florida State University, Florida A&M University and the airport, makes SouthWood an attractive option for those drawn to the convenience of being near the "heart of the city." SouthWood's education village will include the state-of-the-art Florida State University Developmental Research School, the new John Paul II Catholic High School and will host Tallahassee Community College classes at the Capital Circle Office Complex. Together, these institutions will contribute several lifelong learning opportunities to both SouthWood residents and all of Tallahassee.

SouthWood will be a completely "wired" community with fiber optic service at every homesite. It will feature a corporate business park geared toward attracting technology companies to the area. Nationally recognized Datamaxx Applied Technologies, Inc., became SouthWood's inaugural corporate resident in June.

"The unmatched beauty of this land provides the perfect setting for SouthWood. The community design reflects the fact that we take very seriously our stewardship of the property, which St. Joe has owned since 1948. By combining the natural assets of the land with Arvida's 42-year history of community development, we have created a nurturing environment in which residents can live, work and play in a setting that embraces the gifts of nature. We feel honored to be able to create a place that will enhance the land and the lives of the people that call it home," said Timothy D. Edmond, president of Arvida's Capital Region.

Plans call for more than 4,700 homes by the year 2020 and a town center known as SouthWood Village Center, which will serve as SouthWood's central core and include housing, retail shops, restaurants, professional offices and community facilities adjacent to a 123-acre central park and lake. Recreational opportunities include over 12 miles of bike and walking trails, public parks, tot lots, a 1,000-acre interconnected park system, family picnic and play areas and a Fred Couples-signature, semi-private golf course. SouthWood is zoned for over 2.9 million square feet of commercial and office space and 2.7 million square feet of light industrial and distribution facilities.

Built to foster a sense of community and a relaxed pace, SouthWood's homes and public buildings will feature wide porches, tall columns, wood siding and brickwork that will showcase distinctive, timeless architectural designs based on classic architecture found throughout north Florida in decades past. Neighborhoods will be designed around beautifully landscaped squares with a variety of home styles and homesite sizes within each neighborhood reminiscent of historic small towns.

Arvida is the community development arm of St. Joe. Based in Boca Raton, Florida, Arvida is a primary developer of master-planned residential and resort communities nationwide. Since Arthur Vining Davis founded the company 42 years ago, it has developed more than 60 planned communities comprising more than 40,000 new homes in Florida, Georgia, North Carolina, Texas and California. For more information on Arvida, visit www.arvida.com.

St. Joe , a publicly held company based in Jacksonville, is Florida's largest real estate operating company. It is engaged in community, commercial, industrial, leisure hospitality and resort development, along with residential and commercial real estate services. The company also has significant interest in timber. For more information on St. Joe, visit www.joe.com.

Photos are available electronically; please contact Ziffer Marketing & Communication Consultants at 850.668-0010 or e-mail, [e-mail].

Certain matters discussed in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risk and uncertainty, including market risks, developments risks, competition and other risks detailed in the Company's public filings with the Securities Exchange Commission including the Company's Report on Form 10K for the year ended December 31, 1999.

(C) 2000 The St. Joe Company. Arvida Community Sales, Inc., Licensed Real Estate Broker. "Arvida," "St. Joe," and "Arvida, a St. Joe company" and the "Taking Flight" stylized logo are registered service marks of The St. Joe Company. "SouthWood" is a service mark of the St. Joe Company. Arvida is a registered trademark.