BZH Beazer Homes USA Inc New

The St. Joe Company (NYSE:JOE) and Beazer Homes USA, Inc. (NYSE:BZH) announced today the two companies have entered into a long-term relationship under which JOE would entitle, develop and sell home sites in a number of its Florida towns to Beazer Homes, who would build and market the single and multi-family homes. Initially, under the terms of several purchase agreements, JOE will sell Beazer Homes 681 residential single-family, townhouse and multifamily sites, including 82 townhouse sites in SouthWood in Tallahassee, 179 single-family sites at Victoria Park in DeLand and approximately 420 single-family, townhouse and multifamily sites in Panama City Beach. In addition, JOE has selected a proposal from Beazer Homes for the purchase of residential sites in RiverTown in St. Johns County near Jacksonville. "JOE and Beazer Homes have entered into a highly complementary relationship where each partner can leverage its strongest capabilities," said Beazer Homes President and Chief Executive Officer, Ian J. McCarthy. "As JOE applies its entitlement and place-making skills to its enormous Florida land holdings, there are multiple opportunities for Beazer Homes to apply its core strengths building a diverse range of homes and communities of superior quality and value. Florida's population and economy continue to grow at one of the fastest rates in the nation. We look forward to expanding our relationship with JOE and increasing market share throughout Florida." "As one of the country's ten largest homebuilders, Beazer Homes has significant experience building quality homes across a broad range, including single family, townhouse and multi-family products," said Peter S. Rummell, chairman and CEO of JOE. "Its homebuilding expertise brings superior quality and value to our new towns and significantly expands the range of new home choices for residents of JOE's Florida. With JOE's land holdings, entitlements expertise and place-making skills, combined with Beazer Home's market insight through its customer-focused brand, broad product capability and commitment to quality, this mutually beneficial relationship has significant long-term potential." Beazer Homes will have up to 120 days to conduct its due diligence investigations of the various properties under contract with JOE. The companies are expected to consummate transactions at SouthWood and Victoria Park by the end of 2006. The first closings at the two Bay County locations are expected to occur after JOE completes entitlements efforts, anticipated to be completed in 2007. About Beazer Homes USA, Inc. Beazer Homes USA, Inc., headquartered in Atlanta, is one of the country's ten largest single-family homebuilders with operations in Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia and also provides mortgage origination and title services to its homebuyers. Beazer Homes, a Fortune 500 company, is listed on the New York Stock Exchange. For further information, please visit http://www.beazer.com. About The St. Joe Company The St. Joe Company, a publicly held company based in Jacksonville, is one of Florida's largest real estate operating companies. It is engaged in town, resort, commercial and industrial development and land sales. JOE also has significant interests in timber. More information about JOE can be found at our website at http://www.joe.com. Forward-Looking Statements Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, changes in general economic conditions, changes in levels of customer demand, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition, potential liability as a result of construction defect, product liability and warranty claims, the possibility that Beazer Homes' strategies to broaden target price points and lessen dependence on the entry-level product offering in certain markets will not achieve desired results, and other factors described in the The St. Joe Company's Annual Report on Form 10-K for the year ended December 31, 2005 and Beazer Homes' Annual Report on Form 10-K/A for the year ended September 30, 2005. Copyright 2006 by The St. Joe Company and Beazer Homes USA, Inc. "St. Joe," "JOE," and the "taking flight" design are service marks of The St. Joe Company.