CLEVELAND, Dec. 8 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA) and (NYSE: FCEB) today announced that the Company's Board of Directors voted to suspend quarterly cash dividends on its Class A and Class B common stock. The suspension will begin following the dividend payment scheduled for December 15, 2008.

Charles A. Ratner, Forest City president and chief executive officer, said, "In the current economic and financial market conditions, maintaining liquidity is our highest priority. The board felt this was an appropriate action to preserve cash."

Ratner added that the board will reevaluate the decision to suspend dividends when economic and market conditions improve.

The Company will hold a conference call and live webcast with investors on Wednesday, December 10, 2008 at 11 a.m. ET, to discuss third-quarter results as well as the suspension of the dividend and other measures being taken to address the current economic environment. For more information on the call and webcast, visit www.forestcity.net.

Corporate Description

Forest City Enterprises, Inc. is a $10.9 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.

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. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, general real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, dependence on rental income from real property, reliance on major tenants, the effect of economic and market conditions on a nationwide basis as well as in our primary markets, vacancies in our properties, downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, department store consolidations, international activities, the impact of terrorist acts, risks associated with an investment in and operation of a professional sports team, conflicts of interests, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility, the level and volatility of interest rates, the continued availability of tax-exempt government financing, effects of uninsured or underinsured losses, environmental liabilities, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, changes in market conditions, litigation risks, 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.

SOURCE Forest City Enterprises, Inc.

CONTACT:
Robert O'Brien

Executive Vice President - Chief Financial Officer
Tom Kmiecik
Assistant Treasurer
or
Jeff Linton
Vice President - Corporate Communication
all of Forest City Enterprises, Inc.
+1-216-621-6060