AvalonBay Communities Names Bryce Blair Next CEO; Dick Michaux Assumes Executive Chairman Title; Other Company Executives Appointed to Key Roles.

Business Editors

ALEXANDRIA, Va.--(BUSINESS WIRE)--Feb. 26, 2001

AvalonBay Communities announced, effective today, that Bryce Blair, current president and chief operating officer (COO), will assume the titles of president and CEO. Richard L. Michaux the current chairman and CEO will become executive chairman.

Blair, 42, has held positions of increasing responsibility across a broad range of functions during his 16-year tenure with the company and its predecessors. In his role as president and COO, Blair successfully led the company's development, construction, property operations and investment departments to record results. He has been an integral part of the leadership of the company and its predecessors, dating back to the time of the company's IPO.

The company also announced additional senior management changes, including the promotions of longtime AvalonBay executives to key management positions. Tim Naughton, 39, current chief investment officer, will assume the COO position from Blair; Sam Fuller, 39, senior vice president of development and construction will become executive vice president of development and construction; Leo Horey, 38, regional vice president of property operations on the West Coast, will assume the title of senior vice president of property operations. Horey will relocate to AvalonBay headquarters in Alexandria, Va. from San Jose, Calif. With regret, the company also announced that Robert Slater, current executive vice president of property operations, will leave the company April 30, 2001.

"Bryce has been an essential member of the executive team, and an effective leader as the company developed its strategy and executed the plan that led to record results in 2000," said Michaux. "Today's announcement is the culmination of a thoughtful succession plan over several years. Bryce and I have worked together for the past 16 years, and I expect this to be a seamless transition. I am confident Bryce will provide the leadership to execute strategies that will build on the momentum of our record-setting year."

"We had a breakthrough year in 2000, and I am looking forward to building upon that success and taking the company to even higher achievements," said Blair. "As the industry leader in many of the country's high-barrier-to-entry markets, AvalonBay is uniquely positioned to capitalize on those accomplishments. Having worked closely with these officers, I have every confidence we will continue to achieve the kind of outstanding results this company is known for."

In his new role as COO, Naughton will assume responsibility for the performance and coordination of development, construction, property operations, marketing and investments. Naughton has been with the company and its predecessors since 1989. Naughton received his master's degree from Harvard Business School, and his undergraduate degree in economics from the University of Virginia.

Fuller, who led the establishment of the company's franchise position in the Northeast apartment market will be promoted to executive vice president and will continue to oversee development and construction activities nationwide. Fuller has been with the company and its predecessors since 1989. He received his master's degree from Harvard Business School and bachelor's degree in mechanical engineering from the University of New Hampshire.

In his new role, Horey will assume national responsibilities for all property operations. Horey has served as regional vice president of operations, first overseeing management of apartment communities across the Mid-Atlantic and Midwest, and most recently along the entire West Coast. Horey has been with the company and its predecessors since 1990, and is a graduate of Duke University, with a master's degree in business from University of North Carolina at Chapel Hill.

"Tim, Sam and Leo are each 10-year plus veterans of the company, and have extensive experience in our high-barrier-to-entry markets," said Blair. "They have all played critical leadership roles in expanding our presence on both coasts, and delivering consistently strong results in our core operations across our markets. Each of their promotions are reflections of their individual contributions and outstanding leadership demonstrated over many years. I have worked closely with each of them during my tenure with the company, and look forward to tapping their expertise and enthusiasm as we go forward."

Regarding the departure of Robert Slater, Michaux said, "Bob will surely be missed. He built one of the finest property management operations in the country, leading us to consistently outstanding performance, garnering numerous awards and accolades. Bob made significant contributions to the company both personally and professionally. He was instrumental in taking charge of AvalonBay's highly successful merger integration in 1998 and 1999. Bob will be missed, not only for his leadership qualities, but also for the camaraderie he fostered among all of us. There is a tremendous amount of respect and mutual affection between Bob and everyone at AvalonBay."

"We are pleased to have assembled, developed and retained a talented management team with deep bench strength," said Michaux. "As we transition to new leadership, we are proud we were able to look to our own people to lead the company into the future."

AvalonBay Communities, Inc., headquartered in Alexandria, Va., currently owns or holds an ownership interest in 138 apartment communities containing 40,631 apartment homes in 12 states and the District of Columbia, of which 12 communities are under construction and four communities are under reconstruction. AvalonBay is in the business of developing, redeveloping, and acquiring and managing luxury 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.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this release are statements that involve risks and uncertainties, including, but not limited to, changes in the demand for apartment homes, the effects of economic conditions, the impact of competition and competitive pricing, and other matters detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1999 under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations-Forward-Looking Statements." Because of these risks and uncertainties, the apartment mix, estimated number of apartment homes available for initial occupancy, and the anticipated completion date described in this release may be different than currently anticipated by the Company.