The St. Joe Company Provides Guidance for 2005; Earnings Growth Expect

The St. Joe Company Provides Guidance for 2005; Earnings Growth Expected to Continue in 2005

    Business Editors

    JACKSONVILLE, Fla.--(BUSINESS WIRE)--Jan. 10, 2005--The St. Joe Company (NYSE:JOE) today announced that the company expects to have another strong year in 2005 with earnings per share, excluding gains from conservation land sales, to be in the range of $1.35 to $1.50 per share.
    "We have finished 2004 with strong momentum," said Peter S. Rummell, chairman and CEO of JOE. "We are well positioned in Florida, a state with one of the nation's strongest economies, where we have significant demographic and geographic advantages. We believe 2005 will be another very good year for JOE."
    "We expect good earnings from all major segments of the company as we bring a broad array of real estate products to market," said Kevin M. Twomey, JOE's president.

    Towns & Resorts

    "We expect JOE's Towns & Resorts segment to drive the increase in earnings for the year 2005," said Twomey. "WaterColor and WaterSound Beach combined are expected to deliver fewer units than in 2004 but produce nearly as much earnings. Several existing projects, notably Artisan Park, Victoria Park, Palmetto Trace, Rivercrest and Paseos, should see earnings increases. Three new projects, WindMark Beach Phase II, SummerCamp and WaterSound West Beach, are expected to generate significant new income."
    "Notably, our expectations for 2005 do not include sales for three major entitled projects we expect to bring to market in 2006: WaterSound, RiverTown and Perico Island," said Twomey.

    Commercial Real Estate

    "During 2005, our commercial real estate segment is expected to continue adding value through development and land sales in Northwest Florida and from rental income from our Investment Property Portfolio," said Twomey. "Results from this segment are expected to be similar to 2004's level, despite the fact that we do not expect to replicate the gains from buildings sales in 2005."

    St. Joe Land Company

    "We expect St. Joe Land Company to deliver modestly higher income in 2005, with a substantially different mix of earnings sources," said Twomey. "We have decided not to sell two large tracts of land, which we had initially planned to sell in 2005 and 2006, because we see significantly greater profit opportunity from this land through future development. At the same time, we expect our RiverCamps products to deliver more sales with increased unit pricing."

    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, land sales and commercial real estate services. JOE also has significant interests in timber.
    More information about JOE can be found at our web site at http://www.joe.com.

    Forward-Looking Statements

    We made forward-looking statements in this press release. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ, possibly materially, from those in the information. Any statements in this release that are not historical facts are forward-looking statements. You can find many of these forward-looking statements by looking for words such as "intend," "anticipate," "believe," "estimate," "expect," "plan," "forecast," "should" or similar expressions. In particular, forward-looking statements include, among others, statements about the following:

--	earnings per share guidance, future operating performance, cash flows, and short and long-term revenue and earnings growth rates;
--	the size and number of residential units and commercial buildings;
--	the number, price and timing of anticipated land sales or acquisitions;
--	absorption rates and expected gains on land and home site sales;
--	the pace at which we release new product for sale; and
--	comparisons to historical projects.

    Forward-looking statements are not guarantees of future performance. You are cautioned not to place undue reliance on any of these forward-looking statements. These statements are made as of the date hereof based on current expectations, and we undertake no obligation to update the information contained in this release.
    Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by a forward-looking statement include the risk factors described in our annual report on Form 10-K for the year ended December 31, 2003 as well as, among others, the following:

    -- economic conditions, particularly in Northwest Florida,
    Florida as a whole and key areas of the southeast United
    States that serve as feeder markets to our Northwest Florida
    operations;

    -- changes in the demographics affecting projected population
    growth in Florida, including the demographic migration of Baby
    Boomers;

    -- whether our developments receive all land-use entitlements or
    other permits necessary for development and/or full build-out
    or are subject to legal challenge;

    -- local conditions such as the supply of homes and home sites
    and residential or resort properties or a change in the demand
    for real estate in an area;

    -- timing and costs associated with property developments and
    rentals;

    -- the pace of commercial development in Northwest Florida;

    -- competition from other real estate developers;

    -- whether potential residents or tenants consider our properties
    attractive;

    -- changes in operating costs, including real estate taxes and
    the cost of construction materials;

    -- changes in the amount or timing of federal and state income
    tax liabilities resulting from either a change in our
    application of tax laws, an adverse determination by a taxing
    authority or court, or legislative changes to existing laws;

    -- how well we manage our properties;

    -- changes in interest rates and the performance of the financial
    markets;

    -- changes in market rental rates for our commercial and resort
    properties;

    -- changes in the prices of wood products;

    -- the pace of development of public infrastructure, particularly
    in Northwest Florida, including a proposed new airport in Bay
    County, which is dependent on approvals of the local airport
    authority and the Federal Aviation Administration and the
    availability of adequate funding;

    -- potential liability under environmental laws or other laws or
    regulations;

    -- adverse changes in laws, regulations or the regulatory
    environment affecting the development of real estate;

    -- fluctuations in the size and number of transactions from
    period to period;

    -- adverse weather conditions or natural disasters and the impact
    on future demand in Florida; and

    -- acts of war, terrorism or other geopolitical events.

    The foregoing list is not exhaustive and should be read in conjunction with other cautionary statements contained in our periodic and other filings with the Securities and Exchange Commission.

    Copyright 2005, The St. Joe Company. "St. Joe," "JOE" and the "taking flight" design are service marks of The St. Joe Company.

--30--CP/mi*

CONTACT: The St. Joe Company, Jacksonville Media Contact: Jerry M. Ray, 904-301-4430 jray@joe.com or Investor Contact: Steve Swartz, 904-301-4347 sswartz@joe.com

KEYWORD: FLORIDA INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION EARNINGS SOURCE: The St. Joe Company

Copyright Business Wire 2005