JACKSONVILLE, FL-As part of a plan to restructure the company, the St. Joe Co. plans to sell approximately 100,000 acres of rural land, 1,200 developed homes sites, 190 homes and the Sunshine State Cypress Mill. As part of these plans, approximately 260 positions within the company, particularly in the area of project management, will be eliminated or transferred to strategic partners.

The changes are part of plans to shift the company from an “end-to-end” developer to a supplier of entitled land and development partner, the St. Joe Co. chairman and CEO Peter Rummell said during a conference call Monday. “We think these are the logical next steps in the evolution of St. Joe,” he said. “A restructured Joe will help us accelerate the transition of our land to their highest and best use.”

The restructuring is expected to generate savings of approximately $10 million in 2008, $18 million in 2009, and $20 million in later years. The company expected to take a charge of approximately $7 million consisting of severance benefits to employees due to the changes.

During the third quarter, the company anticipates taking charges of approximately $25 million to $30 million related to contract termination costs, of the write-off of capitalized costs at certain projects, the impairment of completed spec homes in several communities and the write-off of goodwill related to Sunshine State Cypress Mill. “A restructured Joe will benefit from a stronger balance sheet,” Rummell said.

With the changes, the company will focus on regional planning and land-use entitlements, and seek strategic partners for development initiatives. “To all potential strategic partners, we say Joe is open for business,” Rummell said.

Before the end of the year, the company plans to transfer the day-to-day operations of its hospitality, recreational and golf assets to leisure, hospitality and lifestyle companies. There are approximately 500 employees in these units that will be impacted by the change. The company plans to continue owning the assets.

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