Atlantic Gulf Communities Announces $30 Million in Tract and Lot Sales.

MIAMI--(BUSINESS WIRE)--July 1, 1998--Atlantic Gulf Communities Corporation (Nasdaq:AGLF) announced Tuesday that it completed several large sales transactions over the past week totalling nearly $30 million.

First, Atlantic Gulf sold an 9/10th-acre parcel in downtown Ft. Lauderdale to Riverwalk Group, LLC for $7 million, or nearly $200 per square foot. The parcel, part of a 2.8-acre property the company owns on the New River and Las Olas Boulevard, will be developed as a high-rise office and hotel complex. The balance of the property is being developed by Atlantic Gulf as a luxury high-rise apartment building.

Second, the company sold 8,400 acres of agricultural property to Alico, Inc. for $8.1 million. The property, part of Atlantic Gulf's Port LaBelle holdings, is located in Hendry County. Port LaBelle is part of Atlantic Gulf's predecessor asset portfolio. Currently, an additional 4,300 acres of LaBelle agricultural property is under contract for sale, and 490 acres remain available.

Third, Atlantic Gulf closed on the sale of 181 homesites and a 29-acre multi-family tract in its Sunset Lakes project in southwest Broward County for $14.5 million. The single family homesites were purchased by Ambry Homes, Landmark Homes, Lennar Homes and Regency Homes. The multi-family tract, which is designed for 255 townhomes, was purchased by Lennar Homes. The four builders are currently building models at Sunset Lakes, which is scheduled to open in mid-July.

J. Larry Rutherford, Chairman of the Board, CEO and President of Atlantic Gulf stated that, "These transactions have, in one week, demonstrated the success of the company's business plan, both in the disposition of predecessor assets, and the profitability from sales in newly acquired core projects. I believe that our shareholders will recall the second quarter of 1998 as an inflection point, when profitability from core business began to dominate the company's operations."

Atlantic Gulf Communities Corporation is one of the Southeast's largest residential real estate developers. The company develops residential lots for homebuilders in many of Florida's most active markets, including South Florida, Tampa, Orlando and Naples, as well as new projects in Raleigh-Durham, North Carolina and Dallas. Headquartered in Miami, the company is a proven leader in professional development services and is known for its leadership role in environmental quality.

This press release includes "Forward looking" statements that are subject to risks and uncertainties. The following factors could affect the company's future results and could cause those results to differ materially from those expressed in the forward looking statements: (a) the inability to generate growth in revenues and net income; (b) unanticipated capital expenditures, including costs associated with real estate development prices; (c) unanticipated costs, difficulties or delays in completing or realizing the intended benefits of development projects; (d) adverse changes in current financial markets and general economic conditions, including interest rate increases; and (e) actions by competitors.

    CONTACT:  Atlantic Gulf Communities Corp., Miami
               Harry Rose, 305/859-4376
               Fax: [phone]
               http://www.atlanticgulf.com