Office Depot Breaks Ground on New Global Headquarters in Boca Raton.

South Florida-Based Multi-Channel Retailer Celebrates Relocation of Corporate Campus

DELRAY BEACH, Fla. -- Office Depot (NYSE:ODP), a leading global provider of office products and services, today officially broke ground on its new global headquarters in Boca Raton. For the company, which is now celebrating its 20th Anniversary, the 28-acre corporate campus provides a home that will fuel its continued growth over the next 20 years and beyond.

The approximately 625,000-square-foot facility being built inside the Arvida Park of Commerce on the southeast corner of Military Trail and Clint Moore Road, will house state-of-the-art technology and a design that inspires productivity and team work. The project will consist of three vertical, interconnected, five-story buildings that are linked by glass-enclosed atriums and will accommodate up to 2,500 Office Depot associates. As part of its relocation from Delray Beach to Boca Raton, Office Depot expects to expand its workforce over time.

"The creation of a new global headquarters marks a significant milestone in Office Depot's history," noted Steve Odland, Chairman and CEO of Office Depot. "It symbolizes not only our growth - from a company operating a single store in South Florida to a $15 billion enterprise serving customers in 42 countries - but also our commitment to the local community that gave us our start."

"I am honored to recognize Office Depot's longtime commitment to Florida, the state where it first established roots in 1986," said Florida Governor Jeb Bush. "While this fine global corporate headquarters would be welcomed anywhere, I am distinctly proud they chose South Florida to foster their future success. We greatly value their presence, economic contributions, and corporate citizenship, and I look forward to their ongoing success in the Sunshine State."

"Office Depot is instrumental to the economic engine that is South Florida and I'm pleased that we were able to support their decision to stay in Palm Beach County," said Boca Raton Mayor Steven Abrams.

"We know that Office Depot had many options for leaving Palm Beach County and the state of Florida," added Mary McCarty, Palm Beach County Commissioner. "We're thrilled they chose to keep their global headquarters here in Florida."

According to Odland, Office Depot expects to occupy the new headquarters building in 2008.

Office Depot is leasing the facility from Flagler/Codina Development Group, the wholly owned commercial real estate arm of Florida East Coast Industries, Inc. (NYSE:FLA), and joint venture partner TIAA-CREF Global Real Estate Group. Flagler Development Group will oversee the design, development and lease of the complex.

"Office Depot, a Fortune 150 Company, is recognized worldwide not only as a business leader but as an outstanding corporate citizen," said Jose Hevia, Chief Operating Officer of Flagler/Codina Development Group. "We are excited by the opportunity to develop a new global headquarters, which will be a high-caliber facility that has a positive economic impact on the community."

Office Depot's other partners in the project include:

* Centex Construction - general contractor

* Retzsch Lanao Caycedo (RLC) - exterior architect

* Hellmuth, Obata + Kassabaum, Inc. (HOK) - interior architect

* TLC Engineering - engineering design for the base building and interiors

* EDI, Ltd. - information technology design

* Cushman & Wakefield - construction advisory services 

"South Florida is a growing business community that has much to offer," said Bob Rohrlack, Senior Vice President, Enterprise Florida. "We hope that Office Depot's continued presence in the area attracts other businesses to locate or expand here."

About Office Depot

Office Depot provides more office products and services to more customers in more countries than any other company.

Incorporated in 1986 and headquartered in Delray Beach, Fla., Office Depot has annual sales of nearly $15 billion, and employs approximately 50,000 associates around the world. Currently, the Company sells to customers directly or through affiliates in 42 countries.

Office Depot is a leader in every distribution channel -- from retail stores and contract delivery to catalogs and e-commerce. As of September 30, 2006, Office Depot had 1,121 retail stores in North America and another 323 stores, either company-owned, licensed or franchised, in other parts of the world. Office Depot serves a wide range of customers through a dedicated sales force, telephone account managers, direct mail offerings, and multiple web sites. With $4.2 billion in online sales during the last twelve months, the Company is also one of the world's largest e-commerce retailers.

Office Depot's common stock is listed on the New York Stock Exchange under the symbol ODP and is included in the S&P 500 Index. Additional press information can be found at: http://mediarelations.officedepot.com.

Florida East Coast Industries, Inc., (FECI) headquartered in St. Augustine, FL, conducts operations through Flagler Development Group (Flagler) and Florida East Coast Railway, L.L.C. (FECR). FECI conducts its real estate operations through Flagler which owns, develops, leases and holds in joint ventures approximately 8.8 million square feet of Class-A office and industrial space, as well as an additional 1.1 million square feet under construction. Flagler space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, Ft. Lauderdale and Miami. In addition, Flagler provides construction, consulting, third party brokerage and property management (approximately 10.5 million square feet) services and owns 828 acres of entitled land in Florida, which is available for development of up to an additional 15.8 million square feet. Flagler also owns approximately 3,158 acres of other Florida properties. Florida East Coast Railway, L.L.C. (FECR), a subsidiary of FECI, is a regional freight railroad that operates 351 miles of

mainline track from Jacksonville to Miami and provides intermodal drayage services at terminals located in Atlanta, Jacksonville, Ft. Pierce and Miami. For more information, visit the Company's website at http://www.feci.com.