Interstate Gen: Shareholder Information

                          News Release


FOR IMMEDIATE RELEASE                             CONTACT
October 2, 1998                                   Edwin L. Kelly
                                                  (301) 843-8600

              IGC ANNOUNCES ACPT DISTRIBUTION DATE

     ST. CHARLES, Md. --  Interstate General Company L.P.

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

that the date for the Distribution of common shares of American

Community Properties Trust (ACPT) has been set for October 5,

1998.  The Distribution will be made to Unitholders as of the

record date of September 1, 1998, on the basis of one ACPT Common

Share for every two IGC Units outstanding on that date.

     On October 19, 1998, IGC will implement a one-for-five

reverse Unit split with respect to the IGC Units (the "Reverse

Split").  As soon as practicable after the date of the Reverse

Split, IGC or its agent will mail transmittal instructions (the

"Instructions") to each IGC Unitholder of record on such date

advising such holder of the procedures for exchanging

certificates representing IGC Units prior to the Reverse Split

("Old Units").  No certificates or scrip representing fractional

New Units will be issued as a result of the Reverse Split.  Each

recordholder of Old Units who otherwise would be entitled to

receive fractional New Units as a result of the Reverse Split

will, upon surrendering its certificate(s) representing Old Units

in accordance with the Instructions, receive cash in an amount

equal to the applicable portion of the market value of the New

Unit based on the closing price of New Units on the American

Stock Exchange as of the date of the Reverse Split.

     Founded in 1957, IGC specializes in community development,

homebuilding, investment apartment properties, and asset

management services.

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