St. Joe Breaks Ground On Second Office Building in Panama City Beach; New Facility to Open by Next Summer.

Business Editors/Real Estate Writers

PANAMA CITY BEACH, Fla.--(BUSINESS WIRE)--Oct. 24, 2002

With the help of local citizens and civic and business leaders, The St. Joe Company (NYSE:JOE) announced today that it has broken ground on the second of four multi-tenant buildings at the Beckrich Business Park in Panama City Beach. The first building, Beckrich One, opened in May 2002.

Beckrich Two, designed as a 35,000 square-foot twin of Beckrich One, is slated for completion by next summer. Current plans are for two more buildings of about the same size. The park also includes a separate, custom-built call center for the wireless phone company Nextel. The Nextel building opened in December 2001 and currently employs approximately 300, with plans to expand to 600 employees.

"The Beckrich Business Park and its continued expansion is the best kind of public-private partnership - business development that advances the interest of the community," U.S. Rep. Allen Boyd said. "These type of initiatives - one fueling the other - translates into opportunities to grow and diversify the job base. We are working here to create jobs for the people of Bay County that can bring long-term prosperity."

"Beckrich Business Park is a magnet for quality jobs that pay good salaries year round," said Panama City Beach Mayor Lee Sullivan at a groundbreaking ceremony. "It's precisely the type of facility our community needs as we work to build an economy that hums 12 months a year."

In addition to Nextel, Park tenants include First American Bank and three engineering and land use consulting firms - Wilson Miller; Dyer, Ribble, Mills and Precourt (DRMP) and Post, Buckley, Schuh & Jernigan (PBS&J). DRMP and Wilson Miller opened the local offices within the past year. The St. Joe Company and several of its subsidiaries also have offices in Beckrich One.

"As the regional economy grows, Beckrich can grow, too," said St. Joe president Kevin Twomey. "This kind of development is good for our shareholders and the community. We were proud to play a part in attracting Nextel to this community, and we are delighted that a number of outstanding professional firms have chosen Beckrich."

Beckrich Business Park, is being developed by St. Joe Commercial. It is one of four St. Joe commerce parks either under construction, in the permitting process, or in operation across Northwest Florida.

St. Joe Commercial is the commercial real estate development unit of The St. Joe Company, based in Jacksonville. St. Joe Commercial has developed over 3.5 million square feet of commercial and industrial space since its inception in 1998.

The St. Joe Company, a publicly held company based in Jacksonville, is one of Florida's largest real estate operating companies. It is engaged in community, commercial, industrial, hospitality, leisure and resort development, along with commercial real estate services. The company also has significant interests in timber.

More information about St. Joe can be found online at http://www.joe.com.

FORWARD LOOKING STATEMENTS

Certain matters discussed in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some matters involve risk and uncertainty, and there can be no assurance that the results described in such forward-looking statements will be realized. In particular, discussions regarding the size and number of commercial buildings, expected development timetables and development approvals, and the ability to obtain approvals, anticipated price ranges of developments, the number of units that can be supported upon full build-out of development, the number and price of anticipated land sales, estimated land holdings for particular use within a specific timeframe, the absorption rate and expected gain on land sales are forward-looking statements. Such statements are based on current expectations and are subject to certain risks. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, the company's actual performance may differ materially from that indicated or suggested by any forward-looking statement contained herein. Additional risk factors that may cause actual results to differ materially from those expressed in forward-looking statements contained in the press release are described in various documents filed by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2001 and a Prospectus dated June 17, 2002.

The "Taking Flight" logo and "St. Joe Commercial" are registered service marks of The St. Joe Company.