Flagler Development Company Announces SVP / Regional Development Officer

Business Wire, Jan 31, 2002

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Jan. 31, 2002

Flagler Development Company (Flagler), the wholly-owned commercial real estate development subsidiary of Florida East Coast Industries, Inc. (NYSE:FLA)(NYSE:FLA.b)(FECI), announces the appointment of Roy A. "Chip" Lilley as Senior Vice President and Regional Development Officer.

Chip will oversee the management, leasing and development of Flagler's projects in the north and central Florida markets, principally in Jacksonville and Orlando. He also will manage land acquisition and disposition. One of his first projects will be managing the development of Flagler's Gran Park at Jacksonville and the construction of the new interchange accessing the park at Interstate 95 and St. Augustine Road.

Chip joins Flagler from Trammell Crow Company in Orlando where he was Senior Vice President and Director of Development. He had been with Trammell Crow Company since 1983. During that time, he worked extensively in leasing, development, management, acquisitions and dispositions, as well as land entitlements and sales.

"Chip is an experienced, broad-based, real estate professional. His skill set is ideal for Flagler as we grow our business in Florida," said G. John Carey, Flagler's President. "We are delighted Chip has joined Flagler Development Company."

He earned his Bachelor's degree in Civil Engineering from Rice University and his Masters of Business Administration from the University of Virginia. He is an active member of the National Association of Industrial and Office Properties and the Economic Development Commission of Mid-Florida. Chip and his family will be relocating to Jacksonville.

Flagler Development Company, headquartered in Jacksonville, Fla., owns, develops, leases and manages approximately 7.2 million square feet of commercial and industrial space, including 638,000 square feet of Class-A office space in a joint venture with Duke Realty Corporation and 560,000 square feet in lease-up. An additional 97,000 square feet is currently under construction. Flagler's space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, Ft. Lauderdale and Miami. In addition, Flagler owns 940 acres of entitled land in Florida available for development of up to an additional 14 million square feet and approximately 14,000 acres of other Florida properties.

Florida East Coast Industries, Inc., headquartered in St. Augustine, Fla., conducts operations through four wholly-owned subsidiaries, Flagler Development Company (Flagler), Florida East Coast Railway, L.L.C. (FECR), Florida Express Carriers, Inc. (FLX) and EPIK Communications Incorporated (EPIK). Flagler owns, develops, leases and manages 7.2 million square feet of commercial and industrial space and owns approximately 14,000 acres of Florida properties. FECR is a regional freight railroad that operates 351 miles of main line track, from Jacksonville to Miami. FLX provides truckload service, intermodal drayage, transportation logistics and brokerage services. EPIK, based in Orlando, Fla., is a carrier's carrier that provides bandwidth capacity, dark fiber leases and collocation services to telecommunication providers.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties that could cause actual results to materially differ form those contained in these forward looking statements. Important factors that could cause such differences include but are not limited to, the Company's ability to complete systems and enhance its telecommunications network within currently estimated time frames and cost estimates; the ability to compete effectively in a rapidly evolving capital constrained, volatile, and price competitive marketplace and to respond to customer demands and industry changes; the ability to achieve revenues from products and services in the telecommunications business that are in the early stages of development or operation; the ability to manage growth; changes in business strategy, legislative or regulatory changes; technological changes; and changing general economic conditions (particularly in the State of Florida and the telecommunication markets); and industry competition. Further information on these and other risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Forms 10K and 10Q. The Company assumes no obligation to update the information contained in this news release, which speaks only as of the date of this press release.