1. Community Development Operations

2. Community Development Questions – Common Themes “What’s a nice mall company like you doing in a business like this?” “Is the business sustainable?” “Aren’t land developers cowboys in SUV’s?”

3. Community Development Operations Columbia based operation Summerlin based operation New business

4. 241.0 85.2 Consolidated Financial Performance (in $ Millions) Revenues Net Operating Income 199719981999200020012002 204.4 49.2 198.8 48.0 197.2 51.1 215.5 66.8 218.3 75.0

5. Baltimore-Washington Columbia

6. Current Statistics Population Number of Units Employees SF of Employment 96,000 34,100 91,000 26.0 Million

7. Columbia, Maryland Dollars per Saleable Acre vs. Acres Sold Dollars per Acre Acres Sold 1 st Full Year Ownership 1986 January 1 - December 31 2002 $164,000 291 $593,000 80

8. Columbia Based Operations Emerson Stone Lake Fairwood Stone Lake Emerson

9. 800+ Acres 900 remaining units 1.8 million sf of employment & retail Fairwood Stone Lake Emerson

12. Fairwood Stone Lake Emerson Stone Lake 137 Acres 224 units Custom Home Sites & Luxury Townhomes Stone Lake

15. Fairwood 1,050 Acres 1600 remaining units Residential, Retail & Employment Units Fairwood Stone Lake Emerson Fairwood

18. Columbia Based Operations Fairwood Stone Lake Emerson

19. Jurisdictions with Growth Control Fairwood Stone Lake Emerson

20. Las Vegas Valley Summerlin The Strip

21. Summerlin Current Statistics Population Number of Units Employees SF of Employment 66,700 32,400 14,400 2.4 Million

22. Summerlin, Nevada Dollars per Saleable Acre vs. Acres Sold Dollars per Acre Acres Sold 1 st Full Year Ownership 1997 January 1 - December 31 2002 $157,000 653 $264,000 366

23. Summerlin The Ridges The Vistas The Paseos

24. The Ridges – 790 acres

25. The Paseos – 375 acres

26. The Vistas – 815 acres

27. Sustainability – Three Initiatives New Business

28. Sustainability – Three Initiatives New Business  Purchase of raw land

29.  Acquisition of operating land projects Sustainability – Three Initiatives New Business

30.  Purchase of raw land  Acquisition of operating land projects  Increase productivity & life of current holdings Sustainability – Three Initiatives New Business

31. Acquisition Criteria  Property in primary market with consistent growth  Low land basis with no or favorable carry  Entitlements – permit development flexibility & diverse land uses  Environment which could promote a competitive advantage  Property of a scale & production life to permit value creation & appreciation

32. Increase Productivity & Life of Holdings Columbia  Sale of development rights on retained surface parking lots  Redevelopment of low intensity TRC owned building sites  Elimination of product lines which do no increase appreciation of remaining saleable acres

33.  Expand custom lot program  Competitive bidding of residential parcels  Participating in builders’ lot premiums & retail home sales Increase Productivity & Life of Holdings Summerlin

34. Finished Lot Program -Summerlin  Better inventory control  Pricing closer to the point of sale to builder  Expands participation opportunities

35. Summerlin’s Available Land in the Context of Diminishing Competition Approximately 19% of approvable land in Summerlin’s market remains for residential development in 2002.

36. Cowboys in SUV’s

37. The Rouse Company’s Development Approach  Production based on builders sales not our sales to builders  Product delivery with minimal holding period  Production control systems to protect profit margins  Product release in small increments  Participate in retail sale of builder’s finished products  Recycle products

38. The Rouse Company’s Inherent Assets  TRC’s name recognition & excellent reputation  Transferability of our experience  Availability & breadth of resources  Depth of our management teams  Relationship with national builders & developers  Disciplined & proven management practices  TRC’s desire to grow the business