Avalon: Dividend News Release


For Immediate Release
June 19, 1998

                      AVALON BAY COMMUNITIES DECLARES
                          SECOND QUARTER DIVIDENDS


        AVALON BAY COMMUNITIES, INC. (NYSE/PCX Symbol: AVB) announced today
that its Board of Directors declared dividends on the Company's Common Stock
(par value $.01) and the Series C, Series D, Series F and Series G Cumulative
Redeemable Preferred Stock for the second quarter of 1998. The Common Stock
dividends are payable on July 15, 1998 to all common stockholders of record as
of June 30, 1998.  The Common Stock dividend is 51 cents per share.  This
represents an increase of nine cents per share from the prior quarter or a
21.4% increase.  The Series C Cumulative Redeemable Preferred Stock dividend is
53.125 cents per share.  The Series D Cumulative Redeemable Preferred Stock
dividend is 50 cents per share.  The Series C and Series D Cumulative
Redeemable Preferred Stock dividends are payable on September 15, 1998 to all
Series C and Series D shareholders of record as of September 1, 1998.  The
Series F Cumulative Redeemable Preferred Stock dividend is 56.25 cents per
share.  The Series G Cumulative Redeemable Preferred Stock dividend is 56 cents
per share.  The Series F and Series G Cumulative Redeemable Preferred Stock
dividends are payable on August 14, 1998 to all Series F and Series G
shareholders of record as of August 3, 1998.
        
Avalon Bay is an equity REIT operating in the high barrier-to-entry markets of
the United States.  The Company owns 146 communities totaling 42,074 apartment
homes in 29 distinct markets, of which 17 communities are under construction
and 24 are under redevelopment.  In addition, the Company holds future
development rights for 20 communities.  For more information on Avalon Bay,
visit the Company's website at http://www.avalonbay.com.  For additional
information, please contact Richard L. Michaux, CEO, at (703) 317-4602 or
Thomas J. Sargeant, CFO, at (703) 317-4635.


Ends.