News Release

For Immediate Release

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

MESA DEL SOL AND SANDIA NATIONAL LABORATORIES ENTER NEW ERA TO SHOWCASE AND DEMONSTRATE ENERGY AND SUSTAINABILITY ACTIVITIES

Albuquerque, NM – Dec. 5, 2008 – Sandia National Laboratories and Mesa del Sol, today signed a formal agreement to partner and work on several technical projects supporting the research, development and demonstration of energy technologies in a real life environment at Mesa del Sol– all toward the goal of achieving the nation’s energy objectives and meeting national energy needs.

“This is perhaps one of the most pioneering and innovative projects in New Mexico and the nation,” said Michael Daly, president of Mesa del Sol. “Today’s signing shows that Sandia and Mesa del Sol share a common vision and commitment to having a positive, significant impact on our environment and on our nation’s energy and water resources.”

Daly said Sandia, as one of the nation’s leading energy research and development laboratories, and Mesa del Sol will be able to advance technical work already underway and provide a foundation for new work and job creation in the energy and sustainability fields.

“We share a common vision that Mesa del Sol provides a unique opportunity for demonstrating the impact of renewable energy resources in creating a precedent-setting, sustainable community and Sandia has pledged to help us realize this vision by providing the technical experience and technologies that they can implement in a real world community,” said Daly.

As part of a subsequent research agreement, Daly said Sandia personnel will occupy space at Mesa del Sol’s soon to open Aperture Center. Sandia intends to demonstrate new technologies and methodologies including: smart grid and microgrid; energy monitoring and storage; concentrating solar technologies as well as energy control and security. An envisioned technology display and visitors center will also serve as a science discovery venue for students and the community. Sandia’s presence in the Innovation Center will also help to facilitate collaborative research and development activities between the Laboratories and UNM.

Daly said the partnership will help Sandia meet Congressional and Department of Energy priorities for advancing alternative and renewable energy initiatives with the added benefit of public/private partnering; While many of the projects will take place at Mesa del Sol, projects are also scheduled for military residential communities Forest City is remodeling and upgrading in Honolulu, HI. Forest City, together with its partners, is leading the development of Mesa del Sol. Sandia activities in Hawaii will include evaluation of new foam insulation effectiveness on several of the model homes, advisement on placement and installation of photovoltaic systems, plus recommendations on technical aspects of power, tax credits and performance assessment of systems for heating and other uses.

“The Sandia collaboration with Mesa del Sol supports a broader strategic partnership with the company that is leading Mesa del Sol’s development, Forest City,” said Les Shephard, Sandia National Laboratories vice president for Energy, Security, and Defense Technologies. “Forest City's progressive community developments, like Mesa del Sol, provide real world physical domains for data collection and technology demonstrations to advance the state of the art in renewable energy and sustainable communities.”

"This agreement will provide further stimulus to the growing ‘green economy’ that is becoming a new anchor in New Mexico's broader economic environment. Combining Mesa del Sol's commitment to sustainable development with Sandia's expertise in renewable energy and efficiency creates a synergy that will showcase what can be done in practice. I applaud DOE, Sandia, and Forest City for their vision and commit to supporting this great effort,” said U.S. Senator Jeff Bingaman, chairman of the Senate Energy and Natural Resources Committee.

“This project unites the public and private sectors to tackle America's dangerous dependence on foreign, unsustainable sources of energy, said U.S. Rep. Tom Udall (D-NM). “This cutting edge collaboration is a model for how we can harness the unparalleled innovative capacity of our national labs to address the energy security challenges facing our nation and world.”

”Today, New Mexico shows once again why it is the epicenter of our nation's new energy economy,” U.S. Rep.-elect Martin Heinrich (D-NM) said. “This innovative partnership between Sandia National Labs and Mesa del Sol proves that the enterprising women and men working for these very different institutions are setting the bar for the kind of public-private partnerships that will benefit our economy and our communities.”

Daly also thanked the outgoing New Mexico Congressional delegation stating the signing is a “legacy contribution of the state’s outgoing administration.”

More information and updates are available at www.mesadelsolnm.com

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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.

About Sandia National Laboratories Sandia is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin company, for the U.S. Department of Energy’s National Nuclear Security Administration. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major R&D responsibilities in national security, energy and environmental technologies, and economic competitiveness.