AvalonBay: Purchases Land in Morris County, NJ For Immediate Release July 6, 1999 AVALONBAY ANNOUNCES 42 ACRE LAND PURCHASE IN MORRIS COUNTY, NJ AVALONBAY COMMUNITIES, INC. (NYSE/PCX Symbol: AVB) announced today the purchase of a 42 acre site in Florham Park, New Jersey and the commencement of construction of a luxury apartment community. The community, to be known as Avalon at Florham Park, will be located on Columbia Turnpike, a main thoroughfare in Morris County and one of the most desirable real estate locations in the state. Morris County has a large, high quality employment base and limited development sites. In Florham Park, no multifamily rental development has occurred in nearly 40 years and the Company believes that demand far exceeds availability. Avalon at Florham Park was designed to duplicate the feel of a colonial village through a unique "neo-tradional" design. The community will contain 270 townhomes in 45 buildings. A landscaped "Central Park" will be featured as the center of the community and the buildings will be configured into five repetitive u-shape designs centered around inner courtyards. The community will also feature a pool area with formal garden, a clubhouse, leasing office and a large fitness center. The uniqueness of the community will be enhanced by the individuality of the townhomes. Twenty different townhouse floor plans offer a mix of one (17%), two (40%) and three (43%) bedroom townhomes. Each townhome will feature an attached one or two car garage, designer kitchens, large walk-in closets, full-size washers and dryers, and in-home intrusion alarms. Select apartment homes will feature gas burning fireplaces, private porches, garden tubs and bay windows. The average net rentable square footage per townhome will be 1,228 square feet. Avalon at Florham Park is budgeted to cost $41 million or $152,000 per townhome, with a projected stabilized yield of 12.1%. Construction commenced on June 15, 1999 and is expected to be completed during the second quarter of 2001. Leasing is expected to commence in the first quarter of 2000, with stabilized occupancy anticipated during the third quarter of 2001. About AvalonBay 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 135 apartment communities containing 39,387 apartment homes in 16 states and the District of Columbia, of which presently 13 communities are under construction and 12 communities are under reconstruction. 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 regarding this news release, please contact Richard L. Michaux, Chief Executive Officer at (703) 317-4602 or Bryce Blair, Chief Operating Officer at (617) 847-1250. This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements include statements regarding the estimated budget for construction of the community described in this release and the expected construction and lease-up schedule and stabilized yield. Actual results may differ materially from those projected in the forward-looking statements. Risks associated with the Company's development, construction and land acquisition activities, which could impact the forward-looking statements made, include: construction costs of a community may exceed original estimates, possibly making the community uneconomical and affecting the projected stabilized yield; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs and affecting the projected stabilized yield; and changes in economic conditions, competition and competitive pricing may adversely affect the Company's projected rents and stabilized yield. These and other risks are detailed more fully in the Company's filings with the Securities and Exchange Commission. Notice of Earnings Release Attachments Distribution Please note that the Earnings Release Attachments ("the Attachments") will no longer be included in the fax distribution. The Attachments will be available via the company web site and through e-mail distribution. To access the Attachments through our web site at http://www.avalonbay.com., select "Press Releases" under "Investors Corner." If you would like to receive future press releases via e-mail, please register through our web site at http://www.avalonbay.com/website/PressRegistration.nsf. Copyright (c) 1999 AvalonBay Communities, Inc. All Rights Reserved Ends.