Avalon: Dividend News Release



For Immediate Release
September 24, 1998

                      AVALON BAY COMMUNITIES DECLARES
                          THIRD 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 third quarter of 1998. The Common Stock
dividends are payable on October 15, 1998 to all common stockholders of record
as of September 30, 1998.  The Common Stock dividend is 51 cents per share. 
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 December 15, 1998 to all Series C and Series D
shareholders of record as of December 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 November 13, 1998 to all Series F and Series G shareholders of
record as of November 2, 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 42,563 apartment
homes in 29 distinct markets, of which 16 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.


This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The words "foreseeable," "expect," "anticipate,"
"estimate," "projected," "budgeted" and other similar expressions which are
predictions of or indicate future events and trends that do not relate solely
to historical matters, including information concerning the Company's future
FFO estimates, identify forward-looking statements.  Reliance should not be
placed on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which are in some cases beyond the
control of the Company and may cause the actual results, performance or
achievements of the Company to differ materially from anticipated future
results.  No assurance can be provided that the anticipated benefits of this
merger will be realized.  Factors that impact the Company's ability to meet
these forward-looking statements include, but are not limited to, the market
acceptance of the Company's new developments, local market conditions, the
ability to achieve projected costs, occupancy levels and revenues, the ability
to successful integrate the merged companies and other factors discussed
periodically in the Company's reports filed with the Securities and Exchange
Commission.


Ends.