AvalonBay: 3rd Quarter Activity For Immediate News Release October 30, 1998 AVALONBAY COMMUNITIES, INC. ANNOUNCES DEVELOPMENT, ACQUISITION AND DISPOSITION ACTIVITY (Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX Symbol: AVB) announced today development, acquisition and disposition activities for the quarter ended September 30, 1998. Development Starts In the third quarter of 1998, the Company commenced development of Avalon Court North, a 340 unit apartment home located in Melville, New York. The garden style community will contain one, two and three bedroom direct entry apartment homes in twenty-three two story buildings. All apartment homes have individual, ground floor entries and 236 have direct access garages. Community amenities include a clubhouse with leasing center, resident business center, indoor half-court basketball, racquetball court, fitness center, swimming pool, fitness trail, putting green, tot lot and picnic area. Avalon Court North is budgeted to cost $40.3 million with a projected initial year stabilized yield of 11.7%. The average size of an apartment home is 1,192 square feet with a weighted average leased rent of $1,512. Construction is scheduled to begin late in the fourth quarter of 1998 and is expected to be completed by the first quarter of 2000. Leasing is expected to commence in the third quarter of 1999 with stabilized operations by the third quarter of 2000. The Company also commenced development of Avalon Fox Mill, a 165 unit apartment community located in Herndon, VA. Avalon Fox Mill will be constructed in fifteen three-story buildings. The floor plans will contain a mix of two and three bedroom town home and three bedroom garden-style apartment homes. All apartment homes have individual, ground floor entries and 119 will have direct-access garages. Community amenities will feature a clubhouse with marketing center and fitness center, a swimming pool with deck, a tot lot and picnic areas. Avalon Fox Mill is budgeted to cost $20.1 million with a projected initial year stabilized yield of 10.2%. The average size of an apartment home is 1,335 square feet with a weighted average leased rent of $1,385. Construction is scheduled to begin late in the fourth quarter of 1998 and is expected to be completed by the first quarter of 2000. Leasing is expected to commence in the third quarter of 1999 with stabilized operations by the second quarter of 2000. Disposition Activity Also during the third quarter, the Company sold three existing communities, Village Park of Troy and Aspen Meadows located in suburban Detroit, Michigan and Arbor Park in Upland, California. Proceeds from the sale of the Michigan communities, which were comprised of a total of 758 apartment homes, were approximately $44.0 million. The Company reinvested $24.0 million of these proceeds in a participating mortgage note with an expected yield of 10.1% in the first stabilized year. The participating note is secured by Fairlane Woods, a 288 apartment home community located in Dearborn, Michigan. The Company is pursuing the purchase of a 100% equity interest in this community. Proceeds from the sale of the California community, which included 260 apartment homes, were approximately $12.5 million. Proceeds from the sale of these three communities were used to repay amounts outstanding under our unsecured credit facility. In connection with the sale of the three communities AvalonBay recognized a non-recurring gain of approximately $40,000 in the third quarter. 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 130 apartment communities containing 38,132 apartment homes in sixteen states and the District of Columbia. Thirteen of these communities containing 4,855 apartment homes are presently under reconstruction. Sixteen communities which will contain 4,432 apartment homes are presently under construction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing multi family 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 or Bryce Blair, Senior Vice President, Development and Acquisitions at (617) 847-1250. 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. AvalonBay Communities, Inc. Ends.