Avalon: Dividend News Release For Immediate Release November 18, 1998 AVALONBAY COMMUNITIES DECLARES INITIAL DIVIDEND FOR SERIES H PREFERRED STOCK AVALONBAY COMMUNITIES, INC. (NYSE/PCX Symbol: AVB) announced today that its Board of Directors declared the initial and partial dividend on the Company's Series H Cumulative Redeemable Preferred Stock. The dividend is payable on December 15, 1998 to all Series H shareholders of record as of December 3, 1998. The Series H Cumulative Redeemable Preferred Stock dividend is .3625 and represents the prorata dividend for the short period beginning October 15, 1998 (settlement date) through December 14, 1998. AvalonBay, named the NAHB Development Company of the year for 1998/1999 and the Property Management Company of the Year for 1996/1997, owns or holds an ownership interest in 131 apartment communities containing 38,592 apartment homes in sixteen states and the District of Columbia. Thirteen of these communities containing 4,855 apartment homes are presently under reconstruction. Fifteen communities which will contain 3,972 apartment homes are presently under construction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing multifamily apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay's Web Site 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. Copyright (c) 1998 AvalonBay Communities, Inc. All Rights Reserved Ends.