AvalonBay: Dividend Distributions For Immediate News Release January 18, 1999 AVALONBAY COMMUNITIES, INC. ANNOUNCES INCOME ALLOCATIONS OF 1998 COMMON AND PREFERRED SHARE DIVIDEND DISTRIBUTIONS AVALONBAY COMMUNITIES, INC. (NYSE/PCX: "AVB") reported today the following taxable allocations of the 1998 dividend distributions on its Common Stock and Preferred Stock. In June 1998, Avalon Properties, Inc. ("Avalon") merged with and into Bay Apartment Communities, Inc. ("Bay"), with Bay as the surviving corporation. In connection with the merger, Bay changed its name to AvalonBay Communities, Inc. Distribution information for Avalon and Bay reporting as independent companies for the period January 1, 1998 through June 3, 1998 is also presented below. Unrecap- Declara- Distri- Taxable Return 20% tured tion Record Payable bution Ordinary of Rate Section Date Date Date Per Share Income Capital Gain 1250 Gain -------- -------- -------- --------- -------- ------- ----- --------- Avalon Properties, Inc. ----------------------- Common Shares (CUSIP #053469102) 01/22/98 02/06/98 02/07/98 $0.3900 56.0% 44.0% 0.0% 0.0% 04/21/98 05/04/98 05/15/98 $0.3900 56.0% 44.0% 0.0% 0.0% Totals: $0.7800 56.0% 44.0% 0.0% 0.0% Preferred Shares Series A (CUSIP #053469201) 01/22/98 02/06/98 02/17/98 $0.5625 100.0% 0.0% 0.0% 0.0% 04/21/98 05/04/98 05/15/98 $0.5625 100.0% 0.0% 0.0% 0.0% Totals: $1.1250 100.0% 0.0% 0.0% 0.0% Preferred Shares Series B (CUSIP #053469300) 01/22/98 02/06/98 02/17/98 $0.5600 100.0% 0.0% 0.0% 0.0% 04/21/98 05/04/98 05/15/98 $0.5600 100.0% 0.0% 0.0% 0.0% Totals: $1.1200 100.0% 0.0% 0.0% 0.0% Bay Apartment Communities, Inc. ------------------------------- Common Shares (CUSIP #072012107) 03/16/98 03/31/98 04/15/98 $0.4200 77.0% 0.0% 9.0% 14.0% Totals: $0.4200 77.0% 0.0% 9.0% 14.0% Preferred Shares Series A (CUSIP #N/A) 12/09/97 12/31/97 02/13/98 $0.4326 100.0% 0.0% 0.0% 0.0% 03/16/98 03/31/98 05/15/98 $0.4326 100.0% 0.0% 0.0% 0.0% Totals: $0.8652 100.0% 0.0% 0.0% 0.0% Preferred Shares Series B (CUSIP #072012206) 12/09/97 12/31/97 02/13/98 $0.4326 100.0% 0.0% 0.0% 0.0% 03/16/98 03/31/98 05/15/98 $0.4326 100.0% 0.0% 0.0% 0.0% Totals: $0.8652 100.0% 0.0% 0.0% 0.0% Preferred Shares Series C (CUSIP #072012305) 12/09/97 03/01/98 03/31/98 $0.53125 100.0% 0.0% 0.0% 0.0% Totals: $0.53125 100.0% 0.0% 0.0% 0.0% Preferred Shares Series D (CUSIP #072012404) 02/19/98 03/01/98 03/13/98 $0.4834 100.0% 0.0% 0.0% 0.0% Totals: $0.4834 100.0% 0.0% 0.0% 0.0% AvalonBay Communities, Inc. --------------------------- Common Shares (CUSIP #053484101) 06/19/98 06/30/98 07/15/98 $0.5100 77.0% 0.0% 9.0% 14.0% 08/31/98 09/30/98 10/15/98 $0.5100 77.0% 0.0% 9.0% 14.0% 12/07/98 12/31/98 01/15/99 $0.5100 77.0% 0.0% 9.0% 14.0% Totals: $1.5300 77.0% 0.0% 9.0% 14.0% Preferred Shares Series C (CUSIP #053484200) 03/16/98 06/01/98 06/15/98 $0.53125 100.0% 0.0% 0.0% 0.0% 06/19/98 09/01/98 09/15/98 $0.53125 100.0% 0.0% 0.0% 0.0% 08/31/98 12/01/98 12/15/98 $0.53125 100.0% 0.0% 0.0% 0.0% Totals: $1.59375 100.0% 0.0% 0.0% 0.0% Preferred Shares Series D (CUSIP #053484309) 03/16/98 06/01/98 06/15/98 $0.5000 100.0% 0.0% 0.0% 0.0% 06/19/98 09/01/98 09/15/98 $0.5000 100.0% 0.0% 0.0% 0.0% 08/31/98 12/01/98 12/15/98 $0.5000 100.0% 0.0% 0.0% 0.0% Totals: $1.5000 100.0% 0.0% 0.0% 0.0% Preferred Shares Series F (CUSIP #053484507) 06/16/98 08/03/98 08/14/98 $0.5625 100.0% 0.0% 0.0% 0.0% 08/31/98 11/02/98 11/13/98 $0.5625 100.0% 0.0% 0.0% 0.0% Totals: $1.1250 100.0% 0.0% 0.0% 0.0% Preferred Shares Series G (CUSIP #053484606) 06/19/98 08/03/98 08/14/98 $0.5600 100.0% 0.0% 0.0% 0.0% 08/31/98 11/02/98 11/13/98 $0.5600 100.0% 0.0% 0.0% 0.0% Totals: $1.1200 100.0% 0.0% 0.0% 0.0% Preferred Shares Series H (CUSIP #053484705) 11/13/98 12/03/98 12/15/98 $0.3625 36.3% 0.0% 0.0% 0.0% Totals: $0.3625 36.3% 0.0% 0.0% 0.0% The Company did not incur any foreign taxes. The information above presents final income allocations. AvalonBay is an equity REIT operating in the high barrier-to-entry markets of the United States. The Company owns 141 communities totaling 41,173 apartment homes in 29 distinct markets, of which 14 communities are under construction and 13 are under redevelopment. In addition, the Company holds future development rights for 27 communities. For more information on AvalonBay, visit the Company's web site at http://www.avalonbay.com. For additional information, please contact Thomas J. Sargeant, CFO, at (703) 317-4635. End.