St Joe Answers Questions

FOR IMMEDIATE RELEASE

Friday, September 14, 2007

The statements in this press release were made as of the date of the release, and we undertake no obligation to update this information.

The St. Joe Company (NYSE: JOE) Posts Answers To Frequently Asked Questions On Web Site

Jacksonville, Florida – (September 13, 2007) – The St. Joe Company (NYSE: JOE) today announced a new feature on its web site, www.joe.com, entitled "Answers to Frequently Asked Questions about JOE." The new feature, which can be accessed through a link on the home page, provides answers to frequently asked investor questions, and is designed to provide shareholders with timely, topical information about JOE.

In recent months, the most frequently asked questions about JOE have been:

Question # 1: Is Florida still a strong growth market?

Answer: Long-term economic and demographic trends continue to favor Florida. The state's economy remains fundamentally strong and continues to diversify. The state's population is expected to increase approximately 75 percent by 2030.

Florida has a long history of strong growth through periods of economic expansion and contraction. It has been one of the country's ten fastest growing states for each of the past seven decades (most decades it was in the top four).
Since 1970, Florida's annual rate of growth has exceeded the U.S. average by 100 percent.
The U.S. Census Bureau projects that in 2010 Florida will move past New York to become the nation's third most populous state. The Bureau projects Florida's population will increase to 28.6 million by 2030, an increase of 12.7 million people over the state's population in 2000.
In the next decade, almost one half of the population growth in the entire United States will come from just three states: Florida, California and Texas.
Florida's strong, diversified economy has regularly outperformed that of the nation. According to Enterprise Florida, Inc.:
Florida has one of the nation's strongest tourism industries; it's fourth in the nation in high-tech jobs; the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
Florida has a robust base of technology-driven businesses, and has a significant and growing presence in the "new economy" sectors of information technology, life sciences, homeland security, national defense and financial services.
Florida is the strategic and economic center of the Americas. Geographic location, combined with economic and political stability, has put Florida at the center of trade and commerce throughout the hemisphere.
In addition to its strong economy and projected population growth, Florida is expected to attract record numbers of Baby Boomers who are reaching the prime age for buying second or vacation homes. Florida remains a favorite Baby Boomer destination.
As strong as Florida's economy is, economic indicators in coastal Northwest Florida are stronger still. For example, Walton County has one of the lowest unemployment rates in Florida and the nation. And 2007 tourism indicators turned in double-digit increases.

Question # 2: Is Northwest Florida, where most of JOE's land is located, a less desirable region than other parts of the state?

Answer: Northwest Florida is a very popular destination and, with significant new infrastructure slated for development in the next decade, many regard it as the region of the state with the most upside.

Florida's beauty and diversity is legendary. Northwest Florida has a distinct geography, culture and cuisine that is very different from Miami or Orlando. JOE is working to make our part of Northwest Florida even better.
Northwest Florida's beaches are the state's second most popular tourist destination, behind only Orlando. They draw seven million visitors each year, more than any other stretch of beach in the eastern United States.
Beaches in Northwest Florida have been rated as some of the most beautiful in the nation and the world. Beaches in Walton, Bay and Gulf Counties have been awarded the number one ranking by Dr. Stephen P. Leatherman, an authority on beach quality and author of America's Best Beaches.
According to a study conducted by the University of Florida's Bureau of Economic and Business Research, for most of the state's history the strong growth rates in Southeast and Southwest regions of the state pulled the center of Florida's population steadily south. But since 1980, this trend has stabilized as growth in the north part of the state, from Jacksonville in Northeast Florida to Pensacola in Northwest Florida, became more balanced than in the past.
Northwest Florida enjoys a very favorable climate, with mild winters, sunshine and clear days.
Northwest Florida is located in U.S. Climate Zone 8, the same climate zone as exclusive and highly successful resort/residential areas such as Hilton Head (SC), Amelia Island (FL), Kiawah Island (SC) and St. Simons and Sea Island (GA).

Question # 3: Does JOE own a significant amount of wetlands and do they have much value or development potential?

Answer: JOE does own a significant amount of wetlands. While much of the wetlands may not be developable, they are very valuable and essential to the development process.

The natural features and wetlands that are part of JOE's land holdings, when combined with JOE's unique strategic position, expertise and approach, provide competitive advantages in planning, design and function that our competitors don't have.
First, with proper planning, wetlands create highly valued views, vistas and natural amenities for development projects.
For example, home sites with views of coastal dune lakes and marshes at WaterColor and WaterSound Beach are more highly valued than interior lots without views.
Second, wetlands are very often necessary for mitigation for development projects.
If a developer doesn't have a "mitigation bank" of wetlands, they are often required to purchase and protect them in order for a project to proceed. Because it owns a significant amount of wetlands, JOE has lands readily available for mitigation required by regulators. This is a significant competitive advantage.
A core JOE competency is master planning development that embraces wetlands as amenities while preserving their environmental integrity.
For example, WaterColor's 499 acres include approximately 135 acres of wetland preserves that were incorporated into the community master plan. Miles of nature trails made these areas an integral part of this resort community. These natural areas are home to several thriving endangered species. Even the resort's storm water systems have been designed to become natural areas and buffers. Not only has WaterColor received numerous accolades for its master-plan design and environmental stewardship, but these features also distinguish WaterColor in the marketplace.
JOE's land holdings also include approximately 5.8 miles of beach, 160 miles of frontage (including bays) along the Gulf of Mexico, 78 miles of frontage along the Intracoastal Waterway and 330,000 acres within ten miles of the coast.

Question # 4: Why is the amount of land JOE owns within ten miles of the coast important?

Answer: Historically, demand has been strongest for Florida locations within ten miles of the coast. JOE owns approximately 330,000 acres in this ten-mile coastal zone – and a significant percentage of the remaining coastal land suitable for development.

This ten-mile coastal zone is the part of Florida where most people want to live. Approximately 80 percent of Florida's population lives within ten miles of the coast.
A large percentage of the land not owned by JOE within Florida's ten-mile coastal zone is either already developed or unsuitable for development. JOE owns a significant percentage of the remaining land within Florida's ten-mile coastal zone that is suitable for development.
Within this ten-mile zone, land is in demand for a wide variety of uses, including resort residential, primary residential, commercial, office parks, light industrial and other uses.
We have had strong results in the past with sales of both beachfront land, as well as off beach land within the coastal zone. For example: ? With 1,100 feet of beachfront on the Gulf of Mexico, WaterColor is an example of high-end residential development on 499 acres in Walton County consisting of 1,140 units. From the start of sales in 2000 through June 30, 2007, JOE closed the sale of 254 homes and 700 home sites. A total of 263 units remain in inventory. WaterColor also includes the 60-unit WaterColor Inn owned by JOE.
Beach Commerce Park in Bay County is an example of how timberlands within the coastal zone, but off the beach, can often be repositioned and developed for a significantly higher use for industrial purposes.

In 2000, the first parcel in this light industrial commerce park was sold for $50,000 per acre. The most recent comparable site sold for $255,000 per acre for an implied annual growth rate of approximately 30 percent. Now with two of three remaining sites under contract, the initial phase of Beach Commerce Park has produced approximately $13 million in total revenue at a development cost of approximately $3 million.

Question # 5: What is JOE doing to increase the value of its land?

Answer: JOE's value creation strategy is based on moving land to its highest and best use. Simply put, that means understanding the unique characteristics and potential of each acre of land, creating a plan for its land holdings and then taking the necessary steps to move each acre towards its highest potential value.

JOE is continually working to create value across its land holdings through entitlements, infrastructure and economic development. Over the previous decade, JOE has made tremendous progress in each of these areas.
Entitlements – In ten years, JOE has gone from having active timberland limited to agricultural type uses to an entitlements pipeline of 45,000 residential units, 14.6 million square feet of commercial space and an additional 611 acres zoned for commercial. Once in hand, these entitlements provide JOE with a range of options to convert them into value.
Infrastructure – JOE has been actively working with federal, state and local governments to improve infrastructure and access to its land holdings. Projects such as the relocation of the Panama City airport and the relocation of U.S. 98 in Gulf County can create tremendous value. Other significant road projects that are in planning or underway are expected to increase access to JOE's land and open many new value creation opportunities. For example, in 2006 JOE sold the state of Florida 4,000 acres to be used for rights-of-way for future road and highway construction in the region.
Economic Development – Economic development tools come in a variety of forms, but all are designed to increase the absorption of real estate in a given area. The new airport in Bay County is expected to be a significant inducer of economic activity, new jobs and value creation. We believe the new Sacred Heart hospital, under construction in Port St. Joe, will be an inducer for real estate in Gulf County, as was the Sacred Heart hospital in Walton County. We also believe that strategic alliances with strong brands like Orvis, Southern Living and Southern Accents introduce the region and JOE products to potential customers. Destination retail, like Pier Park in Panama City Beach, which creates a shopping destination as well as thousands of jobs, is another form of accelerator.
JOE is executing comprehensive land-development strategies and is creating livable communities across Northwest Florida in an effort to maximize the value of JOE land and accelerate absorption. As a result of JOE's planning strengths, we believe the potential highest and best use of strategically located JOE land is increasing.

Question # 6: Describe the demographics of the region and JOE's potential customers.

Answer: Northwest Florida's demographics are strong and improving. More importantly, the demographics in JOE's feeder markets are very strong.

The portion of Northwest Florida where most of JOE's land holdings are located attracts approximately seven million visitors each year. According to Visit Florida, the state's tourism and visitor agency, 33 percent of these visitors are from households with incomes over $75,000 and 16 percent are from households with incomes over $100,000.
There are approximately 620,000 high net worth households (net worth of $5 million and up) in JOE's feeder markets. The number of high net worth households in these feeder markets is expected to increase 13 percent annually.
The number of exclusive resort communities in Northwest Florida is increasing. At communities like Seaside, Rosemary Beach, and JOE's WaterColor and WaterSound Beach, gulf-front lots have sold for $40,000 per linear beachfront foot to high-net worth individuals who have chosen Northwest Florida.
JOE has attracted a number of national developers, retailers and strategic allies to the region that target high-income/high-net worth households, including Orvis, Southern Progress Corporation (publisher of Southern Accents and Coastal Living) and Simon Property Group.
JOE is also engaged with allies in the region to stimulate economic development designed to expand the economy and grow per capita income.

Question # 7: How is JOE's entitlement pipeline an indication of value?

Answer: Without land-use entitlements, most development is not possible. Therefore, securing land-use entitlements is one of the surest methods for increasing the value of JOE land by moving it to a higher and better use.

In Florida, it is becoming increasingly complicated and expensive to secure land-use entitlements, constricting the supply of developable land. JOE's expertise in securing entitlements is a competitive advantage, and its entitlements pipeline is an important indication of future value.
JOE's low basis land and entitlements pipeline together provide a ready supply of developable land that allows JOE to react to changing market conditions more quickly and efficiently than most competitors.
This unique entitlements expertise, coupled with our low-basis land, is a further competitive advantage.
Many competitors must spend significant time and resources to purchase land and gain land use entitlements to be in a position to compete with JOE.
Gaining land use entitlements may become more difficult in the future, further constricting the supply of developable land.

Question # 8: How is the new Panama City airport likely to impact economic growth in the region?

Answer: According to Dr. Hank Fishkind, one of Florida's leading economists, the new Panama City airport is very likely to become a strong economic development engine for the region.

Throughout history, transportation infrastructure in general and airports in particular, have an impressive track record for accelerating economic development activity.
The new Panama City airport will be the first built in almost 15 years. As a large-scale greenfield airport site, it provides unique opportunities and unmatched flexibility for companies dependent on aviation and logistics infrastructure.
There are strong analogs for the development of this airport in Huntsville, AL, Savannah, GA, Jacksonville, FL, Fort Myers, FL and Northwest Arkansas. All of these airports have recently seen significant adjacent development.
Using the State of Florida's standard economic development forecasting model, Fishkind forecasts that over its first 10 years, the new airport would create 8,000 new jobs and at build-out a total of 13,000 jobs.
According to Dr. Fishkind's research, the opening of the new Southwest Regional Airport in the Ft. Myers/Naples area had a tremendous impact on real estate values.
Fishkind found that since the opening of the airport in 1983, the aggregate residential real estate values have increased an average of 11 percent per year in the region.

Question # 9: Most investors view JOE as a long-term holding, but what is management doing to accelerate value creation and return on investment?

Answer: JOE is working to accelerate value creation by becoming a master developer for the region and entering into a wide range of strategic alliances to move projects faster. While we have slowed our capital deployment to match the market, our low-basis land and JOE's entitlement competency provide significant flexibility.

JOE is transitioning from a single end-to-end developer of its land holdings to the supplier of developable land to multiple allies and customers to accelerate the value creation process.
JOE is aggressively pursuing an alliance strategy with other developers and business allies to "fast-track" projects in the region.
In addition to accelerating projects, working with strategic alliances will allow JOE to leverage other organization's capital, expertise and brand strength, as well as limiting the financial risk associated with any specific project.
JOE is working with local, regional and state officials and organizations to stimulate economic development in Northwest Florida, which in turn drives demand for land for commercial, residential, and resort residential development
Transportation infrastructure, education, health care and affordable workforce housing can be drivers of economic activity, which in turn, increases the demand for and the value of real estate in the region.

Question # 10: In this downturn, how strong is JOE's balance sheet? Does JOE have the necessary liquidity to ride out the downside of the real estate cycle?

Answer: JOE has a strong balance sheet, solid relationships with its lenders and ample capacity on its $500 million Revolving Credit Facility to help manage its way through this downturn. JOE's low-basis land provides the company meaningful financial flexibility.

JOE has been and continues to be committed to a strong and conservative balance sheet. Recent corporate actions to strengthen the balance sheet include:
The sale of 16 of the 17 buildings in the company's Office Building portfolio for a gross sales price of approximately $333 million. The final building in the portfolio is scheduled to close before the end of the 3rd quarter for $44 million.
The completed sale of the company's Saussy-Burbank homebuilding subsidiary in the Carolinas for a gross sales price of approximately $76 million.
The exit from the homebuilding business and the elimination of the associated capital expenditure requirements to support this business.
JOE's debt level, as of June 30, 2007, had decreased significantly during the previous 12 months to approximately $487 million including debt of assets held for sale.

Additional frequently asked questions will be posted to www.joe.com as necessary.

About JOE

The St. Joe Company (NYSE: JOE), a publicly held company based in Jacksonville, is one of Florida's largest real estate development companies. We are primarily engaged in real estate development and sales, with significant interests in timber. Our mission is to create places that inspire people and make JOE's Florida an even better place to live, work and play. We're no ordinary JOE.

More information about JOE can be found at our web site at www.joe.com.

Forward-Looking Statements

We have made forward-looking statements in this release pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts are forward-looking statements. You can find many of these forward-looking statements by looking for words such as "intend", "anticipate", "believe", "estimate", "expect", "plan", "should", "forecast" or similar expressions. In particular, forward-looking statements include, among others, statements about the following:

future operating performance, revenues, earnings, cash flows, and short and long-term revenue and earnings growth rates;
future residential and commercial entitlements;
expected development timetables and projected timing for sales or closings of homes or home sites in a community;
development approvals and the ability to obtain such approvals, including possible legal challenges;
the anticipated price ranges of developments;
the number of units or commercial square footage that can be supported upon full build out of a development;
the number, price and timing of anticipated land or building sales or acquisitions;
estimated land holdings for a particular use within a specific time frame;
absorption rates and expected gains on land and home site sales;
the levels of resale inventory in our developments and the regions in which they are located;
the development of relationships with strategic partners, including homebuilders;
the pace at which we release new products for sale;
comparisons to historical projects;
the amount of dividends we pay; and
the number of shares of company stock which may be purchased under the company's existing or future share-repurchase program.

Forward-looking statements are not guarantees of future performance. You are cautioned not to place undue reliance on any of these forward-looking statements. These statements are made as of the date hereof based on our current expectations, and we undertake no obligation to update the information contained in this release. New information, future events or risks may cause the forward-looking events we discuss in this release not to occur.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by a forward-looking statement include the risk factors described in our annual report on Form 10-K for the year ended December 31, 2006 as well as, among others, the following:

economic conditions, particularly in Northwest Florida, Florida as a whole and key areas of the southeastern United States that serve as feeder markets to our Northwest Florida operations;
changes in the demographics affecting projected population growth in Florida, including the demographic migration of Baby Boomers;
changes in perceptions or conditions in the national real estate market or the real estate markets in the states and regions in which we operate;
the termination of sales contracts or letters of intent due to, among other factors, the failure of one or more closing conditions or market changes;
whether our developments receive all land-use entitlements or other permits necessary for development and/or full build-out or are subject to legal challenge;
local conditions such as the supply of homes and home sites and residential or resort properties or a change in the demand for real estate in an area;
timing and costs associated with property developments and rentals;
the pace of commercial development in Northwest Florida;
competition from other real estate developers;
changes in pricing of our products and changes in the related profit margins;
changes in operating costs, including real estate taxes and the cost of construction materials;
changes in the amount or timing of federal and state income tax liabilities resulting from either a change in our application of tax laws, an adverse determination by a taxing authority or court, or legislative changes to existing laws;
changes in interest rates and the performance of the financial markets;
changes in market rental rates for our commercial and resort properties;
changes in the prices or availability of wood products;
the pace of development of public infrastructure, particularly in Northwest Florida, including a proposed new airport in Bay County, which is dependent on various regulatory approvals and permits and the availability of adequate funding;
potential liability under environmental laws or other laws or regulations;
changes in laws, regulations or the regulatory environment affecting the development of real estate;
fluctuations in the size and number of transactions from period to period;
natural disasters, including hurricanes and other severe weather conditions, and the impact on current and future demand for our products in Florida;
the prices and availability of labor and building materials;
changes in insurance rates and deductibles for property in Florida, particularly in coastal areas;
changes in gasoline prices; and
acts of war, terrorism or other geopolitical events.

The foregoing list is not exhaustive and should be read in conjunction with other cautionary statements contained in our periodic and other filings with the Securities and Exchange Commission.