Sacred Heart Health System Breaks Ground on New 25-Bed Hospital in Port St. Joe

Sacred Heart Health System has started site construction for a new 25-bed hospital and medical complex in Port St. Joe, Florida, on land being donated by The St. Joe Company (NYSE:JOE). The new hospital, scheduled to open in early 2009, will help meet critical health care needs in Gulf County and the surrounding region and create approximately 165 jobs. In remarks at a ground-breaking ceremony, JOE COO Britt Greene said, "We are seeing the culmination of years of work to bring the highest quality health care to Gulf County.” Greene praised the community’s visionary leaders for their tireless efforts to address vital health care needs. "We are very fortunate to have Sacred Heart Health System, one of the state’s premier health care providers, join with us as a long-term partner here in Gulf County,” said Greene. "Signs of Port St. Joe’s and Gulf County’s extraordinary rebirth are evident all around us. Gulf County’s future has never looked brighter.” Since the start of the year, significant progress has been made on a number of JOE projects in Gulf County, including: Miraval – JOE and Miraval Holding LLC have agreed to jointly design, develop and operate Miraval Village at WindMark Beach, which will be the next incarnation of Miraval’s acclaimed, signature experiences in an inspired town and resort destination. Miraval’s existing resort in Arizona has been rated the number-one destination spa in the world by Travel + Leisure magazine. Additional announcements about plans and schedules are expected later this year. Exclusive Resorts – JOE has agreed in principle to sell 30 home sites and the 2006 Southern Accents Showhome at WindMark Beach to Exclusive Resorts, the world’s largest luxury destination club. Exclusive Resorts intends to build luxury residences and offer its members privileges and access to the amenities and programs in the planned Miraval Village at WindMark Beach. Exclusive Resorts is expected to significantly expand resort residential options at WindMark Beach. The WindMark Beach Village Center – The first phase with five buildings, consisting of approximately 44,000 square feet of resort operations and commercial space that will include space for Miraval’s initial operations, overnight accommodations, 26 multifamily residential units and a new fine-dining restaurant, is expected to be completed in the second quarter of 2008. BeachWalk – The first phase of the four-mile public BeachWalk at WindMark Beach will open in August 2007. It will be one of Florida’s longest public beachfront trail systems. Port St. Joe Marina – Improvements have been completed to the marina’s docks and seawalls and additional parking facilities with upgraded customer facilities have been added. Galati Yacht Sales is opening a yacht brokerage business at the marina. JOE has engaged Coastal Marina Management to assume day-to-day operations of the marina, with the goal of linking and improving customer service at JOE’s marina system that also includes the Bay Point Marina in Bay County. "Local Color - Discover Port St. Joe” – JOE’s new welcome center at the marina is slated to open next week, housing sales and administration offices. Jetty Park – Improvements to the City of Port St. Joe’s bay front park are nearly complete, including newly paved parking lots, new restroom facilities, new picnic pavilions, boardwalks and a new fishing pier. The facility is slated to be open for the 4th of July. Port St. Joe Town Center – The Port St. Joe City Commission unanimously approved last month a development agreement with The St. Joe Company for the 175 acres that was the site of the Port St. Joe paper mill. The development agreement includes a mixture of uses, including residential, commercial, retail space, office space, a hotel, civic uses and open spaces. "Positive momentum is building across Gulf County,” said Greene. "Each of these projects will provide a boost to the local economy, create jobs and open new opportunities for the Gulf County business community.” "But the new hospital may be the most important community improvement of all,” said Greene. "Few things are more fundamental than quality health care. Few things can do more to change people’s lives for the better.” "With the groundbreaking of the Sacred Heart hospital, we are all taking a giant step forward together,” said Greene. 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. 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. Copyright 2007, The St. Joe Company. "St. Joe,” "JOE,” "WindMark Beach” and the "Taking Flight” design are service marks of The St. Joe Company. "Southern Accents” is a registered trademark of Southern Accents, Inc. "Miraval” is a registered service mark of Miraval Holding LLC. "Exclusive Resorts” is a registered service mark of Exclusive Resorts LLC.