Press Release

East Baltimore Developers Announce Construction Start of Life Sciences Building: Event marks significant milestone in development of the New East Baltimore Community

For immediate release - April 17, 2006

Baltimore, MD – Forest City-New East Baltimore Partnership today announced the start of construction of the first Life Sciences building at the site of the 855 N. Wolfe Street building. The event marks a significant milestone for the development of the New East Baltimore Community project - a community revitalization effort that includes plans for new housing, new business and retail opportunities for residents.

"We are pleased to be a partner in the development of the New East Baltimore Community," said Gayle Farris, president of the Forest City Science + Technology Group. "Our expertise enables us to bring the worlds of science, technology and mixed-use real estate together to support and enable the shared vision we all hold for a revitalized community with greater opportunities for East Baltimore residents, the City of Baltimore as a whole, and the State of Maryland." Forest City has joined with Presidential Partners, a consortium of Baltimore-based developers, to form the Forest City - New East Baltimore Partnership, which is the master developer for the 31-acre first phase of the 80-acre project.

The New East Baltimore Community is a $1 billion project that combines economic and human development interests to create an improved quality of life for its residents. It includes the Science + Technology Park at Johns Hopkins, 150,000 square feet of office and retail space and over 1500 new homes for mixed-income buyers. It is estimated the project will generate up to 6,000 jobs.

"We're all very encouraged by this progress," said Jack Shannon, president and CEO of EBDI. "With our partners on board, we can continue to move forward both with the physical development of the property and our ongoing commitments to the residents of this community."

The 282,000 square foot Wolfe Street Building is the first component of the Science + Technology Park at Johns Hopkins, which will provide more than 1 million square feet of lab and office space for life science research along with increased economic and social opportunities for the historic East Baltimore neighborhood. "The productive partnership that has been formed among area residents, civic officials, the foundation community, corporations, and Johns Hopkins has set a clear vision for a vibrant and economically successful community," said Johns Hopkins President Dr. William R. Brody. "I'm convinced that East Baltimore and its residents will reap the dividends from investments we have all made in this pioneering project."

855 N. Wolfe Street, the first of five planned life science/office facilities in the park, will be anchored by the Institute for Basic Biomedical Sciences of the Johns Hopkins School of Medicine. Connected to other university research facilities via sky bridge, the building is intended to provide state-of-the-art facilities for organizations seeking to participate in joint research programs with Johns Hopkins. The university has also pledged to make sophisticated research equipment elsewhere on its campus available to building tenants.

Forest City Enterprises, Inc. is an $8.0 billion NYSE-listed national real estate company. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate throughout the United States. For more information, go to www.forestcity.net.

Safe Harbor Language
Statements made in this news release that state the Company or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, real estate development and investment risks, economic conditions in the Company's target markets, reliance on major tenants, the impact of terrorist acts, the Company's substantial leverage in the ability to service debt, guarantees under the Company's credit facility, changes in interest rates, continued availability of tax-exempt government financing, the sustainability of substantial operations at the subsidiary level, significant geographic concentration, illiquidity of real estate investments, dependence on rental income from real property, conflicts of interest, competition, potential liability from syndicated properties, effects of uninsured loss, environmental liabilities, partnership risks, litigation risks, risk associated with an investment in a professional sports franchise and other risk factors as disclosed from time to time in the Company's SEC filings, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2006.