AvalonBay: Announces Disposition Activity For Immediate News Release January 6, 1999 AVALONBAY COMMUNITIES, INC. ANNOUNCES DISPOSITION ACTIVITY (Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX Symbol: AVB) announced today that it completed the disposition of six communities in December 1998. Four disposition communities were located in the Mid-Atlantic region of the United States and two of the disposition communities were located in California. Gross Estimated Disposition Sales Net Communities Location Homes Debt Price Proceeds ----------------------------------------------------------------------------- 1) Avalon Pointe Stafford, VA 140 $ 6.380M $ 9.45M $ 2.92M 2) Avalon Ridge Silver Spring, MD 432 $26.815M $35.21M $ 7.70M 3) Chase Lea Owings Mill, MD 296 $16.835M $21.84M $ 4.50M 4) Avalon at Carter Lake Reston, VA 259 -0- $16.80M $16.56M 5) Reflections Fresno, CA 516 -0- $22.42M $21.98M 6) Sommerset Vacaville, CA 136 $ 6.320M $ 7.90M $ 1.38M ----- ------- ------- Total 1,779 $113.62M $55.04M ===== ======== ======= To facilitate the December closing for Sommerset, the Company provided 90 day financing to the purchaser for 80% of the purchase price. Accordingly, the Company will receive an additional $6.32M of net proceeds following the maturity of this financing. These year end sales combined with sales completed earlier in 1998 bring the total value of communities sold during 1998 to $170.3 million. Proceeds from the sale of the six communities listed above will be re-deployed to development and redevelopment communities currently under construction or reconstruction. In connection with the sale of the six communities, AvalonBay expects to recognize a non-recurring gain of approximately $17.3 million in the fourth quarter. Speaking for the Company, Gilbert M. Meyer noted "These sales are part of our strategy to manage the Company's balance sheet and to reduce the Company's dependence on capital markets in today's capital constrained environment. Investors can expect us to continue to pursue sales or exchanges, as we have targeted an additional eight communities with an estimated value of approximately $147.0 million for possible sale or exchange in the first quarter of 1999. We have additional assets under review for disposition later in the year." About AvalonBay Communities, Inc. 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 126 apartment communities containing 37,201 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, Chief Executive Officer at (703) 317-4602, Bryce Blair, Senior Vice President, Development and Acquisitions at (617) 847-1250 or Max Gardner, Senior Vice President, Development and Acquisitions at (408) 260-3776. 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 "expect," "anticipate," "estimate," "projected," "budgeted," and other similar expressions which are predictions of or indicate future events and trends and which 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. 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 development, local market conditions, the ability to achieve projected costs and other factors discussed periodically in the Company's reports filed with the Securities and Exchange Commission. Copyright(c) 1999 AvalonBay Communities, Inc. All Rights Reserved