The St. Joe Company - NYSE:JOE - Reports Strong Start for WaterColor Beachfront Properties
Contracts Totaling Approximately $27 Million Accepted on Entire Release of 22 Beachside Residences

Press Release
August 9, 2000
WATERCOLOR, FL -- Contracts totaling approximately $27 million were accepted on all 22 multi-family residential units released this weekend at WaterColor, the resort and residential community being created in northwest Florida by Arvida, the community development arm of The St. Joe Company (NYSE:JOE).

Town Center Beachside, as these units will be known, is a collection of 22 three- and four-bedroom beachfront multi-family residences directly facing the Gulf of Mexico. Graham Gund, the acclaimed Boston architect, designed the units. Contracts for all 22 of the residences were accepted on the release's opening day, Saturday, August 5, at an average price of $1.22 million. Construction is underway and closings are expected to begin in mid-2001.

``We are already seeing a premium being created by Arvida's place-making expertise,'' said Jim Motta, president of Arvida. ``Buyers are demonstrating a willingness to pay for units in locations they believe will be authentic, organic and original. By creating a true sense of place at WaterColor, we intend not only to add significant incremental value to the beachfront, but more importantly push that value from the beach inland.''

WaterColor is a Southern coastal resort and residential community in northwest Florida, directly on the Gulf of Mexico, adjacent to the acclaimed Grayton Beach State Recreation Area situated along south Walton County's Scenic Highway 30A. At full build-out, the community will include 1,140 residences; beach club; tennis club; boathouse; 60-room inn; 100,000-square-feet of commercial space; dune walkovers and boardwalks and a lakefront park. Nearly half the site is being devoted to open space and preservation areas.

Arvida is a primary developer of master-planned residential and resort communities. Since the company was founded more than 40 years ago by Arthur Vining Davis, it has completed more than 50 planned communities comprising more than 35,000 new homes and 28 golf courses in Florida, Georgia, Texas, California and North Carolina.

St. Joe, a publicly held company based in Jacksonville, is Florida's largest real estate operating company. It is engaged in community, commercial, industrial, leisure, hospitality and resort development, along with residential and commercial real estate services. The company also has significant interests in timber. Its stock is on the New York Stock Exchange and traded under the symbol JOE.

For more information about WaterColor, see the website at www.watercolorflorida.com or contact the WaterColor Sales Office in its new permanent location on the first floor of 1701 Town Center directly on Scenic Highway 30A or locally at 850/231-6500 or toll-free, 1-877/459-4537.

More information about St. Joe can be found at www.joe.com. Additional information about Arvida can be found at www.arvida.com.

All uses not yet constructed are subject to change in size, use or location.

The above discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Such statements are based on current expectations and are subject to certain risks, uncertainties and assumptions. 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.

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


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Contact:

The St. Joe Company, Jacksonville, Fla.
Media Contact:
Jerry M. Ray, 904/858-2707
or
Investor Contact:
Steve Swartz, 904/858-5295 or 904/396-6600
Fax: 904/858-2713