Avalon Bay Communities Inc., Cornerstone Realty Income Trust Added To S&P REIT Composite Index.

NEW YORK--(BUSINESS WIRE)--June 3, 1998--Standard & Poor's Financial Information Services will replace Bay Apartment Communities (BYA) and Avalon Properties (AVN) in the S&P REIT Composite Index with Avalon Bay Communities Inc. (AVB) and Cornerstone Realty Income Trust (TCR) after the close of trading on Thursday, June 4, 1998. Avalon Bay Communities is the company formed by the merger of Bay Apartment Communities and Avalon Properties. The merger is expected to close on that date.

Cornerstone Realty Income Trust is a self-administered and self-managed REIT focusing on multifamily properties in select markets in Virginia, North Carolina, South Carolina, and Georgia. The company, headquartered in Richmond, Virginia, will be added to the S&P REIT Residential property category.

Following is a summary of the announced changes: -0-

                S&P REIT COMPOSITE INDEX--JUNE 4, 1998
            COMPANY            REIT TYPE          PROPERTY CATEGORY

ADDED     Avalon Bay         Equity             Residential
           Communities Inc.

          Cornerstone Realty     Equity             Residential
           Income Trust

DROPPED   Bay Apartment          Equity             Residential
           Communities

          Avalon Properties      Equity             Residential

Standard & Poor's Financial Information Services, a division of The McGraw-Hill Companies, provides financial, economic, and investment information, as well as analytical services, to the global financial community and commodity trading markets.

In addition to the S&P REIT Composite Index, Standard & Poor's also calculates and maintains the S&P 500, S&P MidCap 400, S&P SmallCap 600, and the S&P Super Composite 1500 stock price indexes, which are widely considered key barometers of stock market activity and performance benchmarks for professional money managers. Approximately $653 billion is currently indexed to the S&P Equity Indexes, including $626 billion indexed to the S&P 500, $20 billion indexed to the S&P MidCap 400, and $7 billion linked to the S&P SmallCap 600. Company additions to and deletions from the S&P equity indexes do not in any way reflect an opinion on the investment merits of the company.

    CONTACT: David Blitzer
              V.P. & Chief Economist
              212/208-8434
              or
              Elliott Shurgin
              V.P., Index Services
              212/208-8709