Jacksonville, Florida - (June 24, 2009) - The St. Joe Company (NYSE:JOE) today announced that it has executed and funded a commitment letter to annuitize approximately $93 million of Pension Plan liabilities by transferring approximately $101 million of Pension Plan assets to Massachusetts Mutual Life Insurance Company for the benefit of the retired participants and certain other former employee participants in the Pension Plan. Current employees and those former employees with cash balances in the Pension Plan are not affected by the transaction.



"This annuitization of Pension Plan liabilities is consistent with our strategy to reduce JOE's risk profile. Following the completion of this annuitization, the funded ratio in the Pension Plan will increase from approximately 145 percent to approximately 260 percent, which significantly reduces the risk that we will be required to fund the Pension Plan in the future," said William S. McCalmont, JOE's EVP and Chief Financial Officer.



At May 31, 2009 the Pension Plan had assets of $174 million, liabilities of $121 million and a funded ratio of approximately 145 percent. Following the completion of this annuitization the Pension Plan is expected to have assets of approximately $73 million, liabilities of approximately $28 million and a funded ratio of approximately 260 percent.


The transaction is expected to result in a pre-tax non-cash charge for the second quarter of approximately $43 million as more fully described in a Form 8-K filed with the U.S. Securities and Exchange Commission today.


The estimates above are based on actuarial calculations as of May 31, 2009, which will change through June 30, 2009, the measurement date for accounting purposes.