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JACKSONVILLE, FL-Second quarter financials aren’t disclosing the strength of St. Joe Co.’s commercial and residential development drive in Northwest Florida as it heads for a booming second half, says company chairman and CEO Peter S. Rummell.

Net income was $9.9 million, or 13 cents per diluted share, compared with $33 million, or 40 cents per diluted share, in second quarter 2002.

Earnings before interest, taxes, depreciation and amortization was $27.7 million, or 36 cents per diluted share, versus $66.4 million, or 80 cents per diluted share, a year ago.

Net income and net income per-share numbers include a non-cash charge of $8.8 million net of tax, or 11 cents per share, to reduce the carrying value of Advantis Real Estate Services Inc., the company’s commercial real estate services unit, and a net gain from conservation land sales of $3.2 million, or four cents per share.

The net income and net income-per-share numbers also include a net gain from conservation land sales of $700,000, or one cent per share, and a net gain of $20.6 million, or 25 cents per share, from the April 17, 2002 sale of Arvida Realty Services.

“A side-by-side comparison of the second quarters this year and last year shows Joe’s building momentum in Northwest Florida,” says Rummell, a former Walt Disney World engineering executive in Orlando. “Setting aside the gain last year on the sale of Arvida, and the non-cash charge this year on Advantis, a more apples-to-apples comparison reveals the strength of our performance.”

Rummell says the company’s resort and primary residential real estate sales have been “very strong across our markets.” Commercial land sales in Northwest Florida “continue to build momentum.”

St. Joe Commercial land sales are “performing well ahead of last year’s pace” while St. Joe Land Co. “turned in a steady quarter with a broad base of business,” he adds.

Kevin M. Twomey, St. Joe Co.’s president, chief operating officer and chief financial officer, says the firm is “very optimistic about the remainder of 2003, based on good year-to-date results and a strong pipeline of business.”

Twomey expects full-year 2003 per-share income, before conservation land gains and the non-cash Advantis charge, to “exceed the top of the 5% to 15% range over the adjusted 2002 total.” He cautions, however, “our business is ‘lumpy’ and some transactions we expect to close in 2003 may slip into 2004.”

On the commercial development side, Rummell says the company has “more than 740 acres” across Northwest Florida being converted from timberland into commerce parks “designed to create value for Joe shareholders and jobs for the community.”

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