Forest City Announces Exercise of Overallotment Option by Initial Purchasers of Convertible Senior Notes

Forest City Announces Exercise of Overallotment Option by Initial Purchasers
of Convertible Senior Notes

CLEVELAND, Oct. 23 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc.
(NYSE: FCEA and FCEB) today announced that the initial purchasers of the
Company's recently announced offering of $175 million aggregate principal
amount of convertible senior notes due 2016 (the "Notes"), have exercised in
full their option to purchase an additional $25 million aggregate principal
amount of the Notes to cover overallotments.

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With the initial purchasers' exercise of the full overallotment option, Forest
City estimates that the net proceeds from the offering will be approximately
$177.3 million, after deducting the initial purchasers' discounts, estimated
offering expenses and the cost of convertible note hedge transactions. Forest
City expects to use the net proceeds from the offering to reduce outstanding
borrowings on the Company's $750 million revolving credit facility and for
general corporate purposes, which, depending on prevailing market conditions,
could include the repayment of debt with earlier maturities. The closing of
the offering is expected to occur on October 26, 2009.

About Forest City Enterprises, Inc.
Forest City Enterprises, Inc., is an $11.7-billion NYSE-listed national real
estate company. The Company is principally engaged in the ownership,
development, management and acquisition of commercial and residential real
estate and land throughout the United States. For more information, go to
www.forestcity.net.

SOURCE Forest City Enterprises, Inc.

Robert O'Brien, Executive Vice President - Chief Financial Officer; Jeff
Linton, Vice President - Corporate Communication, both of Forest City
Enterprises, Inc., +1-216-621-6060