AT THE COMPANY                                                ON THE WEB

---------------                                               ----------

Thomas G. Smith                                               www.forestcity.net

Executive Vice President,

Chief Financial Officer

216-621-6060



FOR IMMEDIATE RELEASE



FOREST CITY REPORTS

FIRST-QUARTER RESULTS

        o        NET EARNINGS INCREASES 45 PERCENT TO $0.29 PER SHARE

        o        REVENUES OF $243.9 MILLION UP 15.4 PERCENT

        o        EBDT INCREASES 29.1 PERCENT TO $1.02 PER SHARE





CLEVELAND - JUNE 11, 2003 - FOREST CITY ENTERPRISES, INC. (NYSE: FCEA AND FCEB)

today announced increased net earnings, revenues and EBDT for the first fiscal

quarter of 2003 ended April 30, 2003 as compared to the first fiscal quarter of

2002 ended April 30, 2002.



The Company reported net earnings for the first fiscal quarter of 2003 of $14.8

million, or $0.29 per share, compared with $10.1 million, or $0.20 per share, in

2002. First quarter consolidated revenues increased 15.4 percent to $243.9

million compared with $211.4 million a year earlier.



EBDT (Earnings Before Depreciation, Amortization and Deferred Taxes) for the

first quarter was $51.4 million, or $1.02 per share, a 29.1 percent increase on

a per share basis over last year's first-quarter EBDT of $39.9 million, or $0.79

per share.



EBDT is a non-Generally Accepted Accounting Principle (GAAP) measure that is

provided here as a supplement to GAAP net earnings and net earnings per share.

The Company believes net earnings is the most comparable GAAP measure to EBDT. A

reconciliation of net earnings to EBDT is provided in the financial highlights

table section of this news release. While property dispositions, acquisitions or

other factors can impact net earnings in the short term, the Company believes

EBDT gives a more consistent view of Forest City's overall financial performance

from quarter to quarter and year to year.



Charles A. Ratner, president and chief executive officer of Forest City

Enterprises, said, "We achieved good first-quarter results despite real estate

fundamentals that continue to be challenging. We exceeded the prior-year first

quarter with EBDT of $1.02 per share, an increase of 29.1 percent over 2002. The

timing of certain transactions increased our first quarter results. This

increase in EBDT per share is not indicative of future quarterly performance or

projected annual results for 2003."



{PAGE}



Mr. Ratner continued, "In the second quarter, the Company will incur $12.5

million in one-time expenses related to our recent bond offering (described

below). Despite these expenses, we expect to exceed last year's EBDT. These

results will be driven primarily as a result of new property EBDT generated from

24 project openings and acquisitions that occurred during 2002 and five

residential communities added to our portfolio during the first quarter of 2003.

Our pipeline features more than two dozen projects under construction or

development - some of the most exciting projects in our history. Our comparative

net operating income for the first quarter was down 1.8 percent compared to last

year, but this is a more modest decrease than we have recently experienced."



PUBLIC DEBT OFFERING

--------------------

The Company recently took advantage of favorable conditions in the corporate

bond market. In May 2003, the Company issued $300 million of 7.625 percent

senior notes, due June 1, 2015. Mr. Ratner commented, "We found the opportunity

to extend the maturity of our notes while lowering our interest rate and

improving our liquidity quite compelling. We were also pleased that our offering

received exceptionally strong support in the marketplace. Several of our

original bondholders participated in this new offering."



After payment of $7.6 million for offering costs, the Company will use $208.5

million of the proceeds to redeem, in June 2003, all of its outstanding 8.5

percent senior notes due in 2008 at a redemption price equal to 104.25 percent.

The remainder of the proceeds, $84 million, were immediately used to repay $73

million outstanding under the revolving portion of the Company's long-term

credit facility and for general working capital purposes.



Mr. Ratner continued, "Forest City continues to identify opportunities to invest

its capital at good returns with favorable financing spreads. We anticipate

investing the net proceeds of the offering in new real estate opportunities

which will generate future EBDT for the Company."



As a result of this offering, in the second quarter of 2003, the Company will

incur a one-time expense of $12.5 million (pre-tax) and unamortized debt

procurement costs relating to the redeemed 8.5 percent senior notes.



DIVIDEND INCREASE

-----------------

The Company's Board of Directors declared an increased quarterly cash dividend

of $.09 (annual rate of $.36) per share for both Class A and B. This 50 percent

increase over the previous quarter's dividend rate is in response to recent tax

law changes which lowered the maximum tax rate on dividends to 15 percent.





{PAGE}







Mr. Ratner said, "Forest City remains committed to our capital strategy and

believes our structure as a C-Corp provides us distinct advantages. We can

reinvest the vast majority of our earnings in our existing portfolio as well as

new real estate opportunities to generate attractive investment returns. This

increase, while not meant to raise the Company's dividend yield to that of the

REIT industry, provides a unique opportunity to pass along additional liquidity

to our shareholders."



QUARTERLY HIGHLIGHTS

--------------------

During the first quarter of 2003 Forest City has announced notable achievements

with respect to several of its large, complex developments in New York City,

Denver and California, three of the Company's core markets.





                                  NEW YORK CITY



During the first quarter, Forest City completed construction of its first rental

apartment building in the Foley Square area of Manhattan. The 20-story, 329-unit

WORTH STREET building in the heart of New York City includes studios, one- and

two-bedroom apartments and retail space. It is strategically located within

walking distance of the Tribeca, Soho, Chinatown and City Hall districts of the

City. The apartments have been well received in the market and are currently 67

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