Washington, D.C.—August 25, 2009—Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that a subsidiary, Forest City Washington, has been selected by the Puerto Rico Department of Economic Development and Commerce (DDEC) and the Puerto Rico Tourism Company to become the program manager for the redevelopment of a 21-block area of San Juan’s waterfront district.

Forest City Washington will provide wide-ranging program management services on a fee basis for the project, which is proposed to include residential, hotel, office, retail and parking components, as well as public parks, including a marina.

The 100-acre site is located just east of the historic Old San Juan district on the San Antonio Channel in the area of San Juan known as the Isleta. The site includes nearly two miles of waterfront.

“We are honored to be selected and extremely excited to provide our full array of development management services for the redevelopment of San Juan’s waterfront,” said Deborah Ratner Salzberg, Forest City Washington president and chief executive officer. “This is precisely the type of project – including elements of urban infill, revitalization and waterfront redevelopment – that Forest City has experience with and does well. It is similar in many respects to The Yards project here in D.C., only on a larger scale. This selection also reflects our continued strategic expansion into asset management and third-party advisory services,” she added.

The decision to choose Forest City to manage the redevelopment of San Juan’s waterfront was the result of DDEC’s recent open request-for-qualifications process, which attracted more than 30 initial bidders. A definitive agreement is expected to be signed within the next several weeks. This is Forest City’s second project in Puerto Rico, the first being the former U.S. Navy property at Sabana Seca.

During the proposal phase, the company teamed with San Juan-based PG Engineering Solutions, as well as Strategic Advisory Group of Atlanta, in its bid for the project. Forest City and DDEC will work together to build a full development advisory team for the project.