AvalonBay Communities Declares Third Quarter 2004 Dividends.

ALEXANDRIA, Va. -- AvalonBay Communities, Inc. (NYSE/PCX:AVB) announced today that its Board of Directors declared a dividend on the Company's Common Stock (par value $0.01 per share) for the third quarter of 2004. The Common Stock dividend is $0.70 per share and is payable on October 15, 2004 to all Common Stockholders of Record as of October 1, 2004.

The Board of Directors also declared a dividend on the Series H Cumulative Redeemable Preferred Stock (par value $0.01 per share) for the third quarter of 2004. The Series H Cumulative Redeemable Preferred Stock dividend is $0.54375 per share and is payable on December 15, 2004 to all Series H Stockholders of Record as of December 1, 2004.

About AvalonBay Communities

AvalonBay Communities, Inc., headquartered in Alexandria, Virginia, currently owns or holds an ownership interest in 148 apartment communities containing 42,880 apartment homes in ten states and the District of Columbia, of which fourteen communities are under construction and one community is under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring and managing apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay's Web site at http://www.avalonbay.com.