Forestar Group Inc. Names Flavious Smith Chief Oil & Gas Officer

  Forestar Group Inc. Names Flavious Smith Chief Oil & Gas Officer

Business Wire

AUSTIN, Texas -- October 01, 2012

Forestar Group Inc. (NYSE: FOR) today announced that Flavious Smith has been
named Chief Oil & Gas Officer. Mr. Smith will be responsible for managing the
company’s oil and gas assets.

Flavious joined the company in 2008 as Executive Vice President - Minerals.
Prior to joining Forestar, Mr. Smith had been Division Land Manager for EOG
Resources, Inc. in Fort Worth, Texas since 2005. Prior to joining EOG
Resources, Inc., he spent nearly 20 years in various management positions
within the oil and gas industry. Mr. Smith holds Bachelors and Masters of
Science degrees from Vanderbilt University and a Juris Doctor from the
Oklahoma City University School of Law.

In making the announcement, Jim DeCosmo, president and chief executive officer
of Forestar Group, said, “Flavious has been a valuable member of our senior
management team, and is an experienced and recognized leader in the oil and
gas industry, with almost 25 years of exploration, production, and business
development experience across multiple oil and gas basins. We believe his
outstanding qualifications, extensive market knowledge and leadership will
assist in the execution of Forestar’s strategy to recognize and responsibly
deliver the greatest value from every acre.”

About Forestar Group

Forestar Group Inc. operates in three business segments: mineral resources,
real estate and fiber resources. At the end of second quarter 2012, the real
estate segment owns directly or through ventures almost 145,000 acres of real
estate located in eight states and twelve markets in the U.S. The real estate
segment has 16 real estate projects representing approximately 27,600 acres
currently in the entitlement process, and 72 entitled, developed and under
development projects in seven states and eleven markets encompassing almost
15,600 acres, comprised of almost 24,000 planned residential lots and over
2,400 commercial acres. The mineral resources segment manages approximately
729,000 net acres of oil and gas mineral interests, including approximately
594,000 acres of fee ownership located principally in Texas, Louisiana,
Alabama, and Georgia. In addition, the mineral resources segment manages
leasehold interests in over 135,000 net mineral acres principally located in
Kansas, Oklahoma, Nebraska, and North Dakota, including about 6,000 net
mineral acres in the core of the prolific Bakken and Three Forks formations.
Also included in the mineral resources segment is a 45% nonparticipating
royalty interest in groundwater produced or withdrawn for commercial purposes
from approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama
and about 17,800 acres of groundwater leases in central Texas. The fiber
resources segment includes the sale of wood fiber and management of our
recreational leases. Forestar’s address on the World Wide Web is
www.forestargroup.com .

Forward Looking Statements

This release contains “forward-looking statements” within the meaning of the
federal securities laws. Forward-looking statements are typically identified
by words or phrases such as “will,” “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” “believe,” “target,” “forecast,” and other words
and terms of similar meaning. These statements reflect management’s current
views with respect to future events and are subject to risk and uncertainties.
We note that a variety of factors and uncertainties could cause our actual
results to differ significantly from the results discussed in the
forward-looking statements, including our ability to achieve the synergies and
value creation contemplated by the merger with Credo, our ability to promptly
and effectively integrate Credo’s businesses, and the diversion of management
time on merger-related matters. Other factors and uncertainties that might
cause such differences include, but are not limited to: general economic,
market, or business conditions; changes in commodity prices; the opportunities
(or lack thereof) that may be presented to us and that we may pursue;
fluctuations in costs and expenses including development costs; demand for new
housing, including impacts from mortgage credit availability; lengthy and
uncertain entitlement processes; cyclicality of our businesses; accuracy of
accounting assumptions; competitive actions by other companies; changes in
laws or regulations; and other factors, many of which are beyond our control.
Except as required by law, we expressly disclaim any obligation to publicly
revise any forward-looking statements contained in this news release to
reflect the occurrence of events after the date of this news release.

Contact:

Forestar Group Inc.
Anna Torma, 512-433-5312