JACKSONVILLE -- The St. Joe Company announced today that it has entered a strategic alliance with Shea Homes, the nation’s largest privately owned homebuilder, to be the exclusive builder for JOE’s active-adult neighborhood in JOE’s Victoria Park community in Deland, Florida, near Orlando. Professional Builder magazine named Shea Homes 2007 Builder of the Year, one of the homebuilding industry’s most prestigious accolades. This alliance marks Shea’s initial entry into the Florida market.

Under the terms of the agreement, Shea Homes will purchase up to 705 home sites developed by JOE in the Victoria Gardens neighborhood, a gated, age-qualified active-adult community. In the first phase of the agreement, Shea Homes intends to purchase 168 finished home sites through a take down arrangement.

Shea Homes joins a growing roster of JOE homebuilding alliances. “Shea Homes has an outstanding reputation as a high-quality, customer focused homebuilder, and we are pleased they chose to enter the Florida market at Victoria Park,” said Britt Greene, Chief Operating Officer of JOE. “Shea’s experience in designing and developing communities for Baby Boomers is best in class. We look forward to working with them and creating value for our respective companies and customers for many years to come.”

In addition to being 2007 Builder of the Year, Shea Homes was named America’s Best Builder in 2005 by the National Association of Home Builders and Builder Magazine.

“The alliance between Shea Homes and JOE will allow both companies to focus on what they do best while delivering a superior product to our customers,” said Rick Andreen, president of Shea Homes’ resort communities. “JOE’s entitlements and place-making skills make it a very valuable partner in Florida. Bringing our expertise in serving the needs of Baby Boomers to this vibrant community is a natural extension of our company’s strengths. We see this as a strong first step in expanding Shea Homes’ business across Florida.”

About Shea Homes

America’s largest privately owned homebuilder, Shea Homes is a division of Shea Homes Limited Partnership, an independent member of the Shea family of companies, which celebrated its 125th anniversary in 2006. Shea Homes is currently building throughout Arizona, California, Colorado, Washington and North Carolina. Our motto of Caring Since 1881 is at the core of our company’s values, and our purpose is to enhance people’s lives by building some of the finest neighborhoods and communities available today. Additional information can be found by visiting the company’s website at www.sheahomes.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 our web site at www.joe.com.