The St. Joe Company and Haven Custom Homes, Inc. Announce Strategic Alliance

Business Wire, July 24, 2007

Modular Homebuilder to Bring State-of-the-Art Precision-Building Techniques to JOE Communities

JOE and Haven Custom Homes Collaborate on Southern Living Idea Home

JACKSONVILLE, Fla. -- The St. Joe Company (NYSE:JOE), one of Florida's largest real estate development companies, and Haven Custom Homes, Inc., one of the nation's leading manufacturers of precision-built modular homes, announced today the creation of a strategic alliance to bring state-of-the-art building techniques to JOE communities. Under the terms of the alliance, JOE and Haven Custom Homes are exploring homebuilding opportunities in JOE's communities in Northwest Florida and at JOE's RiverTown near Jacksonville, FL.

JOE, Haven Custom Homes and Southern Living magazine have also collaborated on a Southern Living Idea House at JOE's WaterSound community in Walton County. The 3,500 square-foot shingle-sided, tin-roofed Southern cottage, located 22 miles west of Panama City, Florida, is featured on the cover and in an article in the August issue of Southern Living. The house, designed by Looney Ricks Kiss Architects of Memphis, is open for tours through September 30, 2007.

"We are very pleased to form an alliance with Haven Custom Homes, one of the nation's acknowledged leaders in state-of-the-art precision-building techniques," said JOE chairman and CEO Peter S. Rummell. "They have a proven track record delivering the highest quality custom-built homes in very discerning markets, such as Hilton Head and on Long Island. Customers in JOE communities will be very impressed with the quality, flexibility and efficiency of Haven Custom Homes' approach to homebuilding."

"We are very excited to be working with The St. Joe Company, and in Florida," said Haven Custom Homes President and CEO Jerry Smalley. "St. Joe has created a new paradigm for environmentally-sensitive, master-planned place making. We bring to the market a complimentary home product that combines great design with environmentally-sensitive, cost-effective construction technology. We see tremendous opportunity in Northwest Florida and at RiverTown, as consumers become more familiar with our precision-built custom homes and living in some of America's great places."

In 2006, JOE announced that it was exiting the homebuilding business to focus on master-planning, entitlements and place-making. As a result, JOE is establishing strategic relationships with leading homebuilders to bring a wide range of consumer choices to JOE's Florida. As a leading modular builder, Haven Custom Homes is implementing new homebuilding technology to produce architecturally-designed custom homes ready for occupancy in as little as 90 days. Using these complimentary competencies, the two companies will bring cutting-edge real estate development and homebuilding to JOE's Florida.

About Haven Custom Homes

Haven Custom Homes is a leading manufacturer of custom homes. Built in a climate-controlled factory and then shipped to the home site, our homes are known for their design, superior structural engineering, and quality craftsmanship. The efficiencies of a factory-built product allows Haven Custom Homes to deliver custom homes much faster than a conventional homebuilder. Our homes are found in some of the most prestigious and architecturally demanding communities along the East Coast including the Hamptons, Block Island, Fishers Island, Greenbrier, Hilton Head, Charleston, Savannah and WaterSound, Florida. The company is headquartered in Baltimore, Maryland and is a portfolio company of Wind River Holdings located in King of Prussia, Pennsylvania.

More information about Haven Custom Homes can be found at its web site, www.havenhomes.com.

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 its web site, www.joe.com.

Forward-Looking Statements

Statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our beliefs, plans, goals, expectations and intentions. Forward-looking statements involve risk and uncertainty, and there can be no assurance that the results described in such statements will be realized. Such statements are based on our current expectations and we undertake no obligation to publicly update or reissue any forward-looking statements. Risk factors that may cause the actual results to differ are described in this press release and in various documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2006.

(c) 2007, The St. Joe Company. "St. Joe", "JOE" and the "Taking Flight" design are service marks of The St. Joe Company. "Southern Living" is a register trademark of Southern Living, Inc.