Carey Named President of Flagler Development Company.

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JACKSONVILLE, Fla.--(BUSINESS WIRE)--Dec. 7, 2000

G. John Carey was named president of Flagler Development Company (Flagler), the commercial real estate development arm of Florida East Coast Industries, Inc. (NYSE:FLA) (NYSE:FLA.b).

Previously, Carey was chief operating officer of Flagler. Robert F. MacSwain, was president of Flagler and was recently promoted to Vice Chairman of FECI. Flagler's Board then named Carey president of Flagler. "We are pleased to have the talents of both these seasoned professionals. In his new position, Bob will continue to advise us on advancing Flagler's position, and Flagler will continue to report through him," said FECI Chairman, President and CEO Robert W. Anestis.

"John has, over the past several years, gained an intimate knowledge of both Flagler's portfolio and the Florida markets. He is the ideal person to take Flagler to the next level for FECI's shareholders," said MacSwain.

Carey joined Flagler from The St. Joe Company, in December, of 1999. At St. Joe, he served as Vice President and Senior Investment Officer of St. Joe Commercial, the commercial real estate arm of St. Joe. At Flagler, he has been responsible for the oversight of the development, leasing and management of Flagler's 6.5 million square feet of office, showroom and warehouse space. Flagler's holdings include a number of industrial and commercial parks in Jacksonville, Orlando, Ft. Lauderdale and Miami, including entitlements to develop approximately 16 million square feet of industrial and commercial space, and approximately 17,000 acres of real estate primarily along the east coast of Florida.

As president, Carey will continue to provide strategic oversight of Flagler's significant portfolio and will also pursue new initiatives for the Company. Flagler's current portfolio is located in four of Florida's fastest growing metropolitan markets, and Carey is actively pursuing entrance into some of the state's other profitable real estate markets, such as Tampa Bay.

During Carey's tenure at Flagler overall occupancy rate from operating properties has increased from 85 percent to 92 percent. During 2000, Flagler completed 515,000 square feet of space and currently has 535,000 under construction.

Carey has 20 years of commercial real estate experience as a leasing and development executive with Trammell Crow Company as president of Sabal Corporation, Stone & Webster's real estate subsidiary. Carey earned his bachelor's degree in business administration and accounting from the University of North Carolina at Chapel Hill.

Florida East Coast Industries, Inc., headquartered in St. Augustine, Fla., conducts operations through four wholly owned subsidiaries, Flagler Development Company (Flagler), Florida East Coast Railway Company (FECR), International Transit, Inc. (ITI) and EPIK Communications Incorporated (EPIK). Flagler owns, develops, leases and manages approximately 6 million square feet of commercial space and owns approximately 17,000 acres of land, all in Florida. FECR is a regional freight railroad that operates 351 miles of main line track, from Jacksonville to Miami. ITI provides truckload service, intermodal drayage and transportation logistics and brokerage services. EPIK, based in Orlando, Fla., is a carrier's carrier that provides bandwidth capacity, dark fiber leases and collocation services to telecommunications providers.

This news release contains "forward-looking statements" concerning revenues, expenses, earnings, assessments of current industry and market conditions, technology, and prospects for the future. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties which could cause actual results to materially differ from those contained in these forward looking statements, including, but not limited to, the ability to complete systems and expand and enhance its telecommunications network within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace and to respond to customer demands and industry changes; the ability to achieve revenues from products and services in the telecommunications business that are in the early stages of development or operation; the ability to manage growth, changes in business strategy, changes in regulations and technological changes, and general economic conditions particularly in the state of Florida. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K and most recently filed 10Q. The Company assumes no obligation to update the information contained in this news release which speaks only as of the date of this press release.

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