News Release

For Immediate Release

Contact: Anne Monson, APR, 505-244-8479 Melanie J. Majors, APR, 505-266-5637

MESA DEL SOL and FIDELITY INVESTMENTS OFFICIALS CUT RIBBON ON FIRST PHASE OF 217,892 SQUARE FOOT BUILDING

Albuquerque, NM – Dec. 10, 2008 – Continuing the momentum that is transforming Albuquerque’s southwest mesa into a vibrant 21st century community, Mesa del Sol and Fidelity Investments’ officials today held a ribbon cutting ceremony for phase one of its new two-story operations center.

The 217,892 square foot office building will house Fidelity’s Human Resource Services business, which provides corporate clients with payroll, health and welfare, and human resources services. The building stands on 24.8 acres on the north end of Mesa del Sol’s Innovation Park. In January, Gov. Bill Richardson announced that Fidelity would become a tenant at Mesa del Sol. The new building was erected in less than 12 months with Fidelity employees set to begin moving to the new facility later this month.

Initially, Fidelity will have 300 people at Mesa del Sol with more than 1,200 expected at full occupancy. Phase II of the building is scheduled to be ready for the tenant in March 2009.

“We told the Fidelity team that if they moved here we would get their building up and ready for occupancy in record time and we have made good on that promise,” Michael Daly, president of Mesa del Sol, told a group of local dignitaries prior to the ribbon cutting. “The real story here is jobs and in today’s economy, creating jobs in this community is critical.”

Daly said that the aggressive building schedule saw the building shell completed in six months with the 116,000 square foot Phase I, including tenant improvements, completed in 8 months. He said the 100,000 square foot Phase II will be completed after 10 months. During peak construction, there were approximately 300 local workers on the job site.

“Fidelity is excited to be one of the first major businesses to begin operations at Mesa del Sol, and we're proud to be part of the growth and success of this remarkable mixed-use community,” said Kerry Prine, Fidelity senior vice president and general manager for Albuquerque. “We are particularly pleased with the quality of the 300 associates we have hired in Albuquerque so far, and we look forward to continued success here in 2009 and beyond.”

The building consists of 55,000 square feet on each of two floors with a shared lobby. Large glass strip windows provide light and take advantage of views. The lobby space is two-story and has an open stair. Three additional stairs are located on the exterior walls of the building to provide necessary egress.

Designed by the Albuquerque-based firm of Dekker Perich Sabatini, Klinger Constructors LLC is the general contractor. Other Albuquerque companies that worked on the design or the construction include: Bohannan Huston, Allied Engineering and Design, CCI Engineering, Robin Hendrixson, Hanna Plumbing, TI Architect / BHDP and Chaparral Electric.

The building was designed to achieve LEED “Silver” certification, but is now anticipated to reach Gold certification. This will be the first LEED Gold Office Building at Mesa del Sol. LEED® “Leadership in Energy and Environmental Design” Certification for Environmental Sustainability is granted by the U.S. Green Building Council for New Construction and Major Renovations. It is a rating system for buildings designed to guide and distinguish high performance buildings that have less of an impact on the environment. Many green design elements were integrated into the construction materials including the use of components high in post-industrial and post-consumer recycled content. Many of these materials are manufactured or harvested locally, minimizing expenditures of energy and helping to slow the green house effect by reducing vehicular emissions. The building uses a chilled water system with cooling towers for air conditioning as compared to the typical roof top units on most office buildings.

Preferred parking spaces are available for those who chose to drive alternate fuel vehicles or car pool and additional bicycle racks have been provided. Showers and changing rooms for bicyclists are one of the many additional green design elements. The visitor parking lot is made up of pervious concrete, which captures rainwater and allows it to seep into the ground, thereby recharging ground water and reducing storm water runoff. The 40,000 square foot parking lot is one of the first installations using this product in the state and will become a test case for Mesa del Sol. There were 12,000 cubic yards of concrete poured on the site and 1,300 tons of steel were used in the building construction. More than 85 percent of the construction debris has been re-cycled.

About Mesa del Sol
Mesa del Sol is a 12,900-acre mixed-use district located on Albuquerque’s south mesa. By combining job creation and sustainable urban community planning, Mesa del Sol will reflect a balance of environmental resources, economic objectives and social amenities in a community that is forward-looking with a highly defined sense of place. www.mesadelsolnm.com

Mesa del Sol is a true public/private partnership. In addition to Forest City Covington, NM, LLC, Mesa del Sol is being developed in conjunction with other partners, including the New Mexico State Land Office, the University of New Mexico, with the support of the City of Albuquerque, Bernalillo County and the State of New Mexico.

About Forest City Covington
Forest City Covington NM, LLC is a joint venture between Forest City NM. LLC and Covington NM, LLC. Forest City NM, LLC is a subsidiary of Forest City Enterprises, Inc., a $10.9 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 and land throughout the United States. Covington NM, LLC is an affiliate company of Covington Capital Corporate, a major real estate development and investment company. Covington Capital and its affiliate companies currently own more than 9 million square feet of commercial/industrial space and are actively developing more than 17,000 acres of land in the western United States.

Safe Harbor Language
Statements made in this news release that state the Company’s or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Real estate development risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the inability to secure sufficient financing on favorable terms, construction risks, increases in commodity costs, the inability to obtain required governmental permits and authorizations, the inability to secure tenants or anchors for the project, the withdrawal of a prospective anchor or project partner, opposition from third parties, competition in the target market, economic conditions in the target market, the adverse impact of environmental matters, softening of the housing market, and other risk factors as disclosed from time to time in Forest City’s SEC filings, including but not limited to, Forest City’s annual and quarterly reports.

*Shown from left to right: Peter Mitchell, economic development director, City of Albuquerque; Michael Daly, president Mesa del Sol; Fred Mondragon, New Mexico Economic Development Department secretary; Kerry Prine, Fidelity senior vice president and general manager for Albuquerque; Albuquerque Mayor Martin Chavez; Gerry Wendel, Covington Capital; Phil Vigil, Greater Albuquerque Chamber of Commerce ambassador.