The St. Joe Company Issues $175 Million Senior Notes

Press Release: The St. Joe Company
February 11, 2002
JACKSONVILLE, FL -- The St. Joe Company (NYSE:JOE) Friday announced the successful completion of the issuance, as a private placement, of a series of senior notes with an aggregate principal amount of $175 million and maturities ranging from three to ten years. JOE sought this financing to provide additional financial flexibility by adding a layer of fixed-rate, longer term debt to its balance sheet. Wachovia Securities acted as sole placement agent.

``JOE received a great reaction from institutional investors, particularly as they have become more familiar with us and the unique competitive advantages we enjoy,'' said Peter S. Rummell, chairman and CEO of St. Joe. ``We're pleased we were able to complete this offering with this fine group of investors. We appreciate their confidence in both our strategy and our execution, as expressed through their willingness to provide financing at investment grade rates.''

``We sought this financing as part of our on-going efforts to optimize our financial strategy,'' said Kevin M. Twomey, president, COO and CFO of JOE. ``We are pleased to be able to secure this medium and longer term financing at this stage in the rate cycle. Proceeds from the offering will be used to reduce outstanding variable rate bank debt as well as be available for other general corporate purposes.''

The securities mentioned herein have not been registered under the Securities and Exchange Act. This is not an offer to buy or sell or a solicitation of an offer to buy or sell. All securities have been sold.

The St. Joe Company, a publicly held company based in Jacksonville, is Florida's largest real estate operating company. It is engaged in community, commercial, industrial, hospitality, leisure and resort development, along with residential and commercial real estate services. The company also has significant interests in timber.

More Information about St. Joe can be found online at http://www.joe.com.

Forward-Looking Statements

Certain matters discussed in this press release are ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risk and uncertainty, and there can be no assurance that the results described in such forward-looking statements will be realized. In particular, discussionsregarding the size and number of commercial buildings, residential units, development timetables, development approvals and the ability to obtain approvals, anticipated price ranges of developments, the number of units that can be supported upon full build-out of development, the number and price of anticipated land sales, and the absorption rate and expected gain on land sales and statements concerning future operating performance and short and long term revenue and earnings growth rates are forward-looking statements. Such statements are based on current expectations and are subject to certain risks. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, the company's actual performance may differ materially from that indicated or suggested by any forward-looking statement contained herein. Additional risk factors that may cause actual results to differ materially from those expressed in forward-looking statements contained in the press release are described in various documents filed by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 1999.

``Advantis,'' ``Advantis, a St. Joe company,'' ``WaterColor'' and the ``taking flight'' logo are service marks of The St. Joe Company. Arvida is a registered trademark.

Wachovia Securities is the trade name for the corporate and investment banking activities of Wachovia Corporation and its subsidiaries, including First Union Securities, Inc., member NASD, NYSE, SIPC.



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Contact: 

     The St. Joe Company, Jacksonville
     Media Contact:
     Jerry M. Ray, 904/858-2707
     or
     Investor Contact:
     Steve Swartz, 904/858-5295