Interstate Gen: Earnings News Release News Release FOR IMMEDIATE RELEASE CONTACT May 17, 1999 Mark Augenblick (703) 263-1191 IGC REPORTS FIRST QUARTER RESULTS CHANTILLY, Va. _ Interstate General Company L.P. (AMEX, PSE: IGC), today reported a loss for the three months ended March 31, 1999 of $549,000 or $.27 per Unit, on revenues of $2,946,000, compared to net income of $1,047,000 or $.51 per Unit, on revenues of $11,958,000 for the same period in 1998. On October 5, 1998 IGC distributed to its unitholders shares in a new publicly-traded company called American Community Properties Trust ("ACPT") and transferred its principal real estate operations to ACPT. IGC today is a smaller and different company than it was during the first quarter of 1998. IGC has three principal lines of business, (1) development of real estate holdings; (2) home-building in Virginia, North and South Carolina; and (3) development of environmentally superior waste-to-energy facilities. Management is currently pursuing various stages of developing its real estate projects. Mark Augenblick, IGC's President, said that "good progress is being made in all of the company's real estate operations." For example, at its Brandywine, Maryland site, building permits have been obtained for Phase 1 and construction should start on the first housing units in the next thirty to sixty days. Financing, planning, permitting and other development activities are underway for the balance of the project. Sales of single family homes are proceeding at the pace of about three a month in IGC's Westbury development near the Patuxent Naval Air Station in Southern Maryland. IGC has signed a letter of intent with a major Northern Virginia home-builder for the acquisition of approximately 60 more townhouse lots in the Montclair Community in Prince William County, Virginia. Delivery is expected to start by September of this year. These real estate activities are being financed on a traditional project finance basis. Due to normal and expensive front-end development costs, IGC does not expect to report profits from its real estate activities in 1999. Benjamin L. Poole, President of IGC's home-building subsidiary, American Family Homes ("AFH"), reported that substantial progress is being made in restructuring AFH. New product offerings, more emphasis on information technology for better sales, cost-control, and other purposes, as well as employee incentive programs have sharply increased home sales while maintaining good profit margins. As of March 31, 1999, AFH has settled on 23 homes, has 36 homes under construction and 63 contracts to begin construction in the next three months. Mr. Poole estimates it will take approximately one year before the full effect of the various restructuring activities should enable AFH to return to profitability. Mr. Augenblick said that development activities in IGC's waste-to-energy companies continue to move forward. Caribe Waste Technologies Inc., was "qualified" by the Solid Waste Authority to respond with a final bid for a facility in Puerto Rico. An additional facility is being pursued in Puerto Rico, together with other project opportunities in the U.S. Virgin Islands, Dutch St. Maarten, the Caribbean and elsewhere. Mr. Augenblick cautioned that these development activities are best viewed as long-term investments. They take time to develop and obviously there can be no assurance of success. Chairman and CEO, James J. Wilson, recently explained to unitholders in a letter that IGC is in a period of transition. The company is not likely to be profitable nor to pay dividends to unitholders in 1999. Mr. Augenblick emphasized that the company's operating results should be evaluated over an extended period of time, not on a quarterly basis, due to the cyclical nature of its business. more Interstate General Company, L.P. Financial Highlights (Unaudited) For the Three Months Ended 3/31/99 3/31/98 Revenues $ 2,946,000 $11,958,000 Expenses 3,495,000 10,378,000 (Loss) Income before income taxes and minority interest (549,000) 1,580,000 Provision for income taxes ----- 335,000 (Loss) Income before minority interest (549,000) 1,245,000 Minority interest ----- (198,000) Net (loss) income $ (549,000) $ 1 ,047,000 Net (loss) income per Unit $ (.27) $ .51 Weighted average Units outstanding 2,056,000 2,066,000 # # # Ends. News Release FOR IMMEDIATE RELEASE CONTACT May 17, 1999 Mark Augenblick (703) 263 1191 IGC REPORTS FIRST QUARTER RESULTS CHANTILLY, Va. _ Interstate General Company L.P. (AMEX, PSE: IGC), today reported a loss for the three months ended March 31, 1999 of $549,000 or $.27 per Unit, on revenues of $2,946,000, compared to net income of $1,047,000 or $.51 per Unit, on revenues of $11,958,000 for the same period in 1998. On October 5, 1998 IGC distributed to its unitholders shares in a new publicly-traded company called American Community Properties Trust ("ACPT") and transferred its principal real estate operations to ACPT. IGC today is a smaller and different company than it was during the first quarter of 1998. IGC has three principal lines of business, (1) development of real estate holdings; (2) home-building in Virginia, North and South Carolina; and (3) development of environmentally superior waste-to-energy facilities. Management is currently pursuing various stages of developing its real estate projects. Mark Augenblick, IGC's President, said that "good progress is being made in all of the company's real estate operations." For example, at its Brandywine, Maryland site, building permits have been obtained for Phase 1 and construction should start on the first housing units in the next thirty to sixty days. Financing, planning, permitting and other development activities are underway for the balance of the project. Sales of single family homes are proceeding at the pace of about three a month in IGC's Westbury development near the Patuxent Naval Air Station in Southern Maryland. IGC has signed a letter of intent with a major Northern Virginia home-builder for the acquisition of approximately 60 more townhouse lots in the Montclair Community in Prince William County, Virginia. Delivery is expected to start by September of this year. These real estate activities are being financed on a traditional project finance basis. Due to normal and expensive front-end development costs, IGC does not expect to report profits from its real estate activities in 1999. Benjamin L. Poole, President of IGC's home-building subsidiary, American Family Homes ("AFH"), reported that substantial progress is being made in restructuring AFH. New product offerings, more emphasis on information technology for better sales, cost-control, and other purposes, as well as employee incentive programs have sharply increased home sales while maintaining good profit margins. As of March 31, 1999, AFH has settled on 23 homes, has 36 homes under construction and 63 contracts to begin construction in the next three months. Mr. Poole estimates it will take approximately one year before the full effect of the various restructuring activities should enable AFH to return to profitability. Mr. Augenblick said that development activities in IGC's waste-to-energy companies continue to move forward. Caribe Waste Technologies Inc., was "qualified" by the Solid Waste Authority to respond with a final bid for a facility in Puerto Rico. An additional facility is being pursued in Puerto Rico, together with other project opportunities in the U.S. Virgin Islands, Dutch St. Maarten, the Caribbean and elsewhere. Mr. Augenblick cautioned that these development activities are best viewed as long-term investments. They take time to develop and obviously there can be no assurance of success. Chairman and CEO, James J. Wilson, recently explained to unitholders in a letter that IGC is in a period of transition. The company is not likely to be profitable nor to pay dividends to unitholders in 1999. Mr. Augenblick emphasized that the company's operating results should be evaluated over an extended period of time, not on a quarterly basis, due to the cyclical nature of its business. more Interstate General Company, L.P. Financial Highlights (Unaudited) For the Three Months Ended 3/31/99 3/31/98 Revenues $ 2,946,000 $11,958,000 Expenses 3,495,000 10,378,000 (Loss) Income before income taxes and minority interest (549,000)1,580,000 Provision for income taxes ----- 335,000 (Loss) Income before minority interest (549,000) 1,245,000 Minority interest ----- (198,000) Net (loss) income $ (549,000)$ 1 ,047,000 Net (loss) income per Unit $ (.27)$ .51 Weighted average Units outstanding 2,056,000 2,066,000 # # # Ends.