Forestar Withdraws Proposed Private Offerings of Senior Secured Notes and Convertible Notes

Forestar Group Inc. FOR today announced that, as a result of recent deterioration in the capital markets, it and its wholly-owned subsidiary, Forestar Real Estate Group Inc., have decided not to proceed with their previously announced proposed private offerings of $100 million aggregate principal amount of convertible notes due 2018 and $150 million aggregate principal amount senior secured notes due 2019. Management determined that, because the proposed transactions were opportunistic in nature and the terms and conditions offered to Forestar did not meet their expectations or recognize the future value expected for Forestar stakeholders, it was inadvisable to proceed with the offerings at this time. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy the notes or any securities. There can be no assurance if or when Forestar may offer any such securities.