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                     Interstate Gen: Dividend News Release

Interstate General Company L.P., A Limited Partnership
Executive Offices:  222 Smallwood Village Center, St. Charles, Maryland
20602  (301) 843-8600  FAX (301) 870-8481

                                  
                            News Release
     
     
     FOR IMMEDIATE RELEASE                             CONTACT
     December 5, 1997                                  Edwin L. Kelly
                                                       (301) 843-8600
     
     
          IGC BOARD REPORTS NO QUARTERLY CASH DISTRIBUTION
                                  
                                  
          ST. CHARLES, Md._ Interstate General Company L.P. (AMEX,

     PSE: IGC), a diversified real estate organization, announced

     today that the Board of Directors of its managing general

     partner has voted to make no cash distribution to the

     Unitholders related to operations for the three months ended

     September 30, 1997.

          Edwin L. Kelly, IGC President and Chief Operating Officer,

     said the Company plans to distribute in early 1998 shares in

     American Community Properties Trust ("ACPT").  Currently, the

     Securities and Exchange Commission is reviewing preliminary

     proxy materials that describe the Company's proposed

     restructuring plan including the ACPT distribution.

          Founded in 1957, IGC specializes in community

     development, homebuilding, investment apartment properties

     and asset management services.

                                  
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