Interstate Gen: Gets $20 Million Credit Facility

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
     September 23, 1997                                Edwin L. Kelly
                                                       (301) 843-8600
     
     
              IGC RECEIVES $20 MILLION CREDIT FACILITY
              TO FINANCE DEVELOPMENT OF FAIRWAY VILLAGE
                                  
          ST. CHARLES, Md._ Interstate General Company L.P. (AMEX,

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

     that it has closed a $20 million credit facility to repay

     existing indebtedness, provide working capital and fund the

     development of Fairway Village in IGC's planned community of

     St. Charles, Md.  The credit facility is provided by Banc One

     Capital Partners IV, Ltd., an affiliate of Columbus, Ohio based

     BancOne Corporation.

          Fairway Village will be the third of five villages in St.

     Charles, and is approved for 3,300 housing units.  Surrounding

     an existing 18-hole championship golf course, Fairway includes a

     180-acre business park and 42 acres of commercial land.

     Bisecting the village will be a cross-county connector highway,

     linking U.S. Route 301 with Maryland Route 5.  IGC has already

     begun construction of that road.

          Edwin L. Kelly, President of IGC, said, "This financing is

     a significant event for our company, our unitholders and the

     community of St. Charles.  Development of Fairway Village over

     time will generate approximately a ten-year supply of residential land-

     sale inventory, while providing excellent housing values and

     economic development for the local market.  We expect to begin

     development immediately and have building lots available in the

     spring of 1998."
                      
            In connection with closing the loan, IGC paid the

    unpaid balance of fines relating to the wetlands litigation.

    IGC will recover these payments if it prevails in its appeal of this

    matter.

          Located 20 miles from Washington, D.C., St. Charles was

     developed by IGC as a New Town under the 1968 New

     Communities Act.  The community has been carefully planned

     to contain a balanced mix of land uses, including

     residential, commercial, recreational and educational.

     Today the community has a population of approximately 33,000

     people with more than 11,000 homes, eight public schools,

     six neighborhood recreation centers and 4.6 million square

     feet of commercial and business space.  More than 20 percent

     of the land is being preserved as open space, which contains

     more than 14 lakes and miles of hiking and biking trails

     that connect neighborhoods with community amenities.

          Founded in 1957, IGC specializes in community

     development, homebuilding, investment apartment properties

     and asset management services.

                                  
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