Forest City Announces Redemption of 6.50 Percent Senior Notes Due 2017 Worth $132.1 Million

Forest City Enterprises, Inc.,

today announced that it has provided notice of its intention to redeem all of its outstanding 6.50 percent Senior Notes due 2017 (the "Notes"). (Logo: http://photos.prnewswire.com/prnh/20080515/FRSTCTYLOGO ) Approximately $132.1 million aggregate principal amount of the Notes are currently outstanding. Funding for the redemption comes primarily from the company's previously announced offering of $250 million aggregate principal amount of 3.625 percent Convertible Senior Notes due 2020, which closed on July 19, 2013. "This transaction is another example of our continuing focus on strengthening our balance sheet and building a strong, sustaining capital structure," said David J. LaRue, Forest City president and chief executive officer. "We are committed to continuing to improve our debt metrics, while also selectively investing in our mature portfolio and in entitled development opportunities in our core markets." The Company has provided notice to the indenture trustee, The Bank of New York Mellon Trust Company, N.A., of its intention to redeem, on August 23, 2013 (the "Notes Redemption Date"), all of the outstanding Notes, pursuant to the terms of the Notes. The redemption price will be 100 percent of the principal amount of the Notes redeemed, plus any accrued and unpaid interest up to, but not including, the Notes Redemption Date. About Forest City Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.6 billion in total assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.