Forest City Unveils Frank Gehry’s New

Atlantic Yards Designs

Redesigned Building One, Barclays Center & Building Two, the First
Residential Building, Featured; Barclays Center Showroom & Updated
Construction Schedule Announced

BROOKLYN, NEW YORK—Monday, May 5, 2008—Forest City Ratner Companies

(FCRC) today released the latest images of the Frank Gehry-designed Atlantic Yards
development inBrooklyn. FCRC also affirmed its commitment to build the entire project
including more than 2,250 units of affordable housing for low- and middle-income New
Yorkers.

“We mark a significant chapter in Atlantic Yards’ progress today,” said Bruce Ratner,
Chairman and CEO of Forest City Ratner. “Frank Gehry’s elegant design speaks volumes
about the hard work and significant steps forward we have made to date. Each day,
working with our public sector partners, we are advancing Atlantic Yards with an
emphasis on all the important public benefits—especially the affordable housing—which
we are all committed to making a reality for Brooklyn.”

The new designs have been in the works since the project received public approvals in
December 2006. They feature the first three buildings expected to be built: Building One
(B1, an office tower), the Barclays Center (Arena) and Building Two (B2), a residential
tower which pursuant to FCRC’s agreement with ACORN is expected to have 50% of its
units dedicated to low- and middle income New Yorkers.

“After a productive collaboration, our work for Atlantic Yards has come together in a
way that makes me very pleased,” said Frank Gehry, architect of Atlantic Yards. “The
design for Miss Brooklyn, which we now call Building One, has become very special for
me. In response to the new program, it has evolved and has become slimmer, more
elegant and more festive and is ideally suited for an office building. It fits in even better
with the evolution of the arena design and has become a very important work for me. As
part of the masterplan, we envisioned that the residential buildings would be more
understated, more in keeping with the neighborhood and how the buildings will be used. I
am very eager to continue working on this project with my partner Bruce Ratner.”
During the approval process, Forest City agreed to reduce the height of B1 to ensure it
was not taller than the Williamsburgh Savings Bank, the tallest building
in Brooklyn which is located across the street. B1 will now stand 511 feet and 34 stories
tall, just shorter than its neighbor on Flatbush Avenue. The building, which is designed to
achieve a LEED silver rating, will have approximately 650,000 square feet of class A
office space. FCRC and Frank Gehry have partnered to create a targeted marketing
campaign to attract an anchor tenant for B1, reaffirming that the office building will not
be built on speculation. Cushman & Wakefield will serve as leasing agent for B1.

“Building One will be an exceptionally powerful and distinguished piece of architecture,

both its exterior and interior layout will be quite different from any other office building
Brooklyn or New York has ever seen,” said Mitchell Konsker, Vice Chairman, Cushman
& Wakefield. “Brooklyn’s commercial market is continuing to grow and evolve and this
building will undoubtedly attract business leaders and corporations from around the
world. I believe Frank Gehry’s building has the potential to turn Brooklyn’s commercial
market from a predominantly back office market to a front office market.”

The Barclays Center, the future home of the NBA Nets franchise, has also received an
updated design. Frank Gehry’s swooping blue metallic exterior surrounds the Center and
is in keeping with his world-renown distinctive style. The Center is designed to achieve
LEED certification with a goal of LEED silver and will incorporate some of the most
state-of-the art interior and exterior amenities. A full Frank Gehry-designed luxury suite
will be unveiled at the Barclays Center Showroom located in The New York Times
building on the evening of May 15th.

B2, the first residential tower, will be 340 feet or 34-stories tall with approximately 350
units of housing. FCRC and its Community Benefits Agreement (CBA) partner,
ACORN, are working with the city and the state of New York to achieve a
comprehensive affordable housing program for Atlantic Yards. As part of that program,
it is expected that 50% of the units in this first residential tower will be dedicated to low-
and middle-income families. Becoming the new standard in mixed-income living in New
York City, B2’s residential amenities include a 24-hour doorman, fitness center, secure
bike racks and resident lounge.

Forest City affirmed its construction schedule for both phases of the development, stating
its goal was to break ground on the Barclays Center in 2008 and B2 in 2009. Both of
these buildings are expected to open at the same time. The next residential tower, B3, is
expected to break ground in 2010 and, B4, the final residential tower within phase one is
expected to break ground in 2011. A minimum of 30% of the estimated 1,500 units on
the arena block will be dedicated to low- and middle-income New Yorkers. Phase two is
anticipated to be completed by 2018.

“We have established an aggressive but manageable construction schedule and we are
confident we will get it done,” continued Mr. Ratner. “Atlantic Yards will revitalize an
area of Brooklynwhich has sat fallow for over 50 years. It is creating more than 15,000
union construction jobs, over 6,400 units of housing including 2,250 affordable units,
generating billions of dollars in new tax revenues for the city and the state, and bringing
professional sports back to Brooklyn.”

Since site preparation work commenced over a year ago, approximately 50% of the
structures on the Atlantic Yards site have been taken down and more than $42 million in
contracts have been awarded, with 45% going to minority- and women-owned
businesses.

About Forest City

Forest City Ratner Companies (FCRC) owns and operates 32 properties in the New
York metropolitan area. FCRC is a wholly owned subsidiary of Forest City Enterprises,
Inc., a $10 billion NYSE-listed national real estate company engaged in the ownership,
development, management and acquisition of commercial and residential real estate and
land throughout the United States.

Safe Harbor Language

Statements made in this news release that state the Company’s or management's
intentions, hopes, beliefs, expectations or predictions of the future are forward-looking
statements. The Company's actual results could differ materially from those expressed or
implied in such forward-looking statements due to various risks, uncertainties and other
factors. Real estate development risks and factors that could cause actual results to
differ materially from those in the forward-looking statements include, but are not limited
to, the inability to secure sufficient financing on favorable terms, construction risks,
increases in commodity costs, the inability to obtain required governmental permits and
authorizations, the inability to secure tenants or anchors for the project, the withdrawal
of a prospective anchor or project partner, opposition from third parties, competition in
the target market, economic conditions in the target market, the adverse impact of
environmental matters, softening of the housing market, and other risk factors as
disclosed from time to time in the Company’s SEC filings, including but not limited to,
the Company’s annual and quarterly reports.