WCI Files Plan of Reorganization and Disclosure Statement

"The filing of our Plan is a major milestone in WCI's restructuring events and our goal of emerging from chapter 11 in the third quarter of 2009," said David L. Fry, Interim President and Chief Executive Officer. "Under the Plan, WCI will emerge as a deleveraged lifestyle community developer and land holding company with the flexibility to navigate its business during these unprecedented times and beyond. Consistent with the decision made earlier in the year, the Company intends to continue to suspend all Florida homebuilding new construction activities indefinitely, pending market recovery. However, the Company will continue to complete homes under construction and will continue the ongoing maintenance of our communities and amenities operations."

Under the Plan, it is anticipated that the Company's senior secured lenders will receive new first lien debt in the aggregate amount of $450 million, which includes a $150 million payment-in-kind (PIK) component and an initial 95% equity stake in the reorganized company. The remaining 5% would be shared by the Company's unsecured creditors. The unsecured creditors' share would begin to increase when the new debt is fully retired and would reach a maximum of 35% after the secured lenders have received payments that are equivalent to the amount currently owed to them (approximately $770 million).

Although the proposal has not been approved or recommended by either the Steering Committee for the secured lenders or the official Unsecured Creditors Committee in the case, it is reflective of the positions taken in lengthy negotiations that have occurred since early 2009. In that regard, the Company determined that the parties' positions were sufficiently close, therefore it was appropriate to get a plan on file with the bankruptcy court reflecting a fair and reasonable proposed resolution of the open issues so discussions could continue against a definitive timeline for exit.

"While we would have preferred to have a filed plan that was fully consensual with our secured lenders and our official committee, we felt it was in the best interest of all of our stakeholders to commence the Plan approval process, which is likely to take about three months," Mr. Fry continued.

The court will consider the adequacy of the information contained in the Disclosure Statement on July 17, 2009. In closing, Mr. Fry concluded that, "It is our intention that the Plan be largely agreed to at that time."

About WCI Communities

WCI is a fully integrated homebuilding and real estate services company with more than 50 years' experience in the design, construction and operation of leisure-oriented, amenity rich master-planned communities. It has operations in Florida, New York, New Jersey, Connecticut, Virginia and Maryland. The company directly employs approximately 1,170 people, as well as approximately 1,800 sales representatives as independent contractors.

Forward Looking Statement

Certain information included herein and in other company reports, Securities and Exchange Commission filings, statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about the company's ability to operate its business while in Chapter 11 proceedings, anticipated operating results, financial resources, ability to acquire land, ability to sell homes and properties, ability to deliver homes from backlog, and ability to secure materials and subcontractors. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other company reports, filings, statements and presentations. These risks and uncertainties include WCI's ability to compete as a going concern in real estate markets where we conduct business; WCI's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of WCI to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for WCI to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; WCI's ability to obtain and maintain normal terms with vendors and service providers; WCI's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on WCI's liquidity or results of operations; the ability of the WCI to fund and execute its business plan; the ability of WCI to attract, motivate and/or retain key executives and associates; WCI's ability to maintain or increase historical revenues and profit margins; WCI's ability to obtain necessary permits and approvals for the development of its lands; the availability of capital to WCI and our ability to effect growth strategies successfully; availability of labor and materials and material increases in insurance, labor and material costs; increases in interest rates and availability of mortgage financing; the ability of prospective residential buyers to obtain mortgage financing due to tightening credit markets, appraisal problems or other factors; increases in construction and homeowner insurance and availability of insurance, the continuing negative buyer sentiment and erosion of consumer confidence; the negative impact of claims for contract rescission including the impact of any Chinese drywall claims or lawsuits by contract purchasers; adverse legislation or regulations; adverse legal proceedings; the ability to retain employees; changes in generally accepted accounting principles; natural disasters; adverse weather conditions; and changes in general economic, real estate and business conditions and other factors over which the company has little or no control. If one or more of the assumptions underlying our forward-looking statements proves incorrect, then the company's actual results, performance or achievements could differ materially from those expressed in, or implied by the forward-looking statements contained in this report. Therefore, we caution you not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.

SOURCE: WCI Communities, Inc.

Sitrick And Company 
Sandra Sternberg 
Maya Pogoda 
310-788-2850