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FOREST CITY DEVELOPMENT AND GRUPO PROTEXA OF MEXICO ANNOUNCE JOINT VENTURE TO DEVELOP SHOPPING MALLS IN MEXICAN CITIES

 CLEVELAND, May 17 /PRNewswire/ -- Forest City Development, the commercial real estate development division of Forest City Enterprises, Inc., (AMEX: FCEA, FCEB) announced today a joint-venture partnership with Mexico's Grupo Protexa to develop and own shopping malls in major Mexican cities.
 Forest City's joint venture with Grupo Protexa marks the American real estate giant's entry into the Mexican commercial real estate market. Grupo Protexa is a $2 billion Mexican conglomerate headquartered in Monterrey, Nuevo Leon, with interests in transportation, construction, manufacturing, telecommunications, offshore drilling, petrochemicals, food processing, tourism and real estate. Forest City, which owns approximately $2 billion of real estate in 20 states and the District of Columbia, has been consistently ranked among the top development and management companies in the United States.
 "The time is right for major American developers to look to Mexico for new commercial real estate opportunities," said James Ratner, president and chief executive officer of Forest City Development. "Our new partnership with a company as well-regarded and financially strong as Grupo Protexa enables Forest City to use our vast development, leasing and management experience in a country with a big need for commercial development. At a time when commercial development in the United States is at a standstill, Mexico's stabilizing economy and its growing middle class make it a natural new market for our company and for American retailers looking to expand."
 "We are proud to participate with a company of Forest City's stature and experience in the commercial real estate business," said Humberto Lobo, Protexa chairman and chief executive officer. "We believe our companies' combined experience and financial strength can only spell success for our joint developments."
 The joint-venture partnership will focus on developing and owning shopping malls in Mexico's major cities. Forest City and Grupo Protexa will share their vast development experience to build state- of-the-art enclosed shopping malls. Forest City will also focus on attracting major American department stores and retailers to the Mexican market.
 "There is a pent-up demand among Mexican consumers for American retail goods, especially women's fashions," said Ratner. "With the North American Free Trade Agreement on the near horizon, we see Mexico as a timely opportunity not only for our company, but for American retailers looking to take advantage of free trade."
 Grupo Protexa is acknowledged as playing a strong and active role in Mexico's emerging economic and technological development. With business interests that touch on virtually every aspect of its country's livelihood, Grupo Protexa is among a handful of business organizations shaping Mexico's economic future. In 1991, Grupo Protexa entered into the first United States-Mexican joint transportation venture with Burlington Northern, Inc., to facilitate trade by integrating rail and barge services between interior points in Mexico and the U.S. Grupo Protexa also is involved in a consortium with Millicom, Inc., New York, to provide cellular telephone service to the Mexican states of Nuevo Leon, Tamaulipas and Coahuila. In addition, Grupo Protexa has formed strategic partnerships with Pepsico, Texaco, Bechtel, McDermott and Reliance.
 Forest City Enterprises, a member of the American Stock Exchange (FCEA, FCEB), is a vertically integrated full-service real estate development and management company based in Cleveland. The company owns 24 shopping centers with approximately 14 million square feet of GLA, as well as office buildings, apartments and hotels from New York to Los Angeles. Forest City's best known projects are MetroTech, a mixed-use development in downtown Brooklyn, N.Y., and Tower City Center, a redevelopment of Cleveland's famed Terminal Tower and Union Terminal into a mixed-use shopping, retail and transportation facility.
 -0- 5/17/93
 /CONTACT: David Eden of William Silverman, 216-696-7750, for Forest City Development/
 (FCEA FCEB)


CO: Forest City Enterprises; Grupo Protexa ST: Ohio IN: CST SU: JVN

AR -- CL003 -- 8980 05/17/93 08:01 EDT
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Date:May 17, 1993
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