Interstate Gen: Other News Release

                               
                           News Release


FOR IMMEDIATE RELEASE                                  CONTACT
October 8, 1997                                        Edwin L. Kelly
                                                       (301) 843-8600

                IGC COMPLETES SALE OF 1.5 ACRES IN
             ST. CHARLES FOR ASSISTED LIVING FACILITY
                                 
                                 
     ST. CHARLES, Md._  Interstate General Company L.P. (IGC) has
completed the sale of a one and one-half acre parcel on Village
Street in the Smallwood Village Center, St. Charles, to Morningside
Developments, L.L.C. for construction of an assisted-living
facility consisting of 74 elderly apartment suites.  The
Morningside Group is based in Middleburg, Virginia, and is an
assisted-living development and management company.
     The new facility, Morningside House, will provide 24-hour
licensed nursing supervision, medication administration, three home-
cooked meals a day and snacks, laundry and housekeeping services, a
scheduled program of activities and transportation to appointments.
As part of the facility, there will be a 15-bed Special Needs Unit
for Alzheimer's and dementia residents, respite care and
rehabilitation services.  The facility expects to open in early
summer 1998.
     St. Charles is a 9,100-acre planned community located in
Charles County, Md., approximately 20 miles from Washington, D.C.
The community's current population of 35,000 is expected to exceed
80,000 upon its projected completion.  As a master planned
community, St. Charles provides a balanced blend of residential,
shopping and employment centers in harmony with a quality living
environment, including neighborhood schools, parks, lakes, trails,
recreational amenities and community centers.
     IGC was founded in 1957 and specializes in four related areas
of operation:  community development, homebuilding, investment
apartment properties and asset management services.  A publicly
traded partnership, the company is listed on the American and
Pacific stock exchanges under the symbol IGC.

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