<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-095536
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20101019
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20101025
<DATE-OF-FILING-DATE-CHANGE>20101025
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AVATAR HOLDINGS INC
<CIK>0000039677
<ASSIGNED-SIC>1531
<IRS-NUMBER>231739078
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-07395
<FILM-NUMBER>101139103
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
<PHONE>3054427000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GAC CORP /DE/
<DATE-CHANGED>19801023
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GENERAL ACCEPTANCE CORP
<DATE-CHANGED>19710208
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g24972e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 or 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Date of report (Date of earliest event reported): October&nbsp;19, 2010
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Avatar Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Delaware<BR>
(State or Other Jurisdiction of Incorporation)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top">001-07395<BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">23-1739078<BR>
(I.R.S. Employer Identification No.)</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">201 Alhambra Circle, Coral Gables, Florida<BR>
(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">33134<BR>
(Zip Code)</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(305)&nbsp;442-7000<BR>
(Registrant&#146;s Telephone Number, Including Area Code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Not Applicable<BR>
(Former Name or Former Address, if Changed Since Last Report)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;5.02.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;20, 2010, Avatar Holdings Inc. (&#147;Avatar&#148;) announced that Jon M. Donnell will join
the company as President and Chief Executive Officer, effective November&nbsp;15, 2010. The appointment
follows the decision by Gerald D. Kelfer, Avatar&#146;s long-time President and Chief Executive Officer,
to retire effective November&nbsp;15, 2010. Mr.&nbsp;Kelfer will continue to serve as a Director and Vice
Chairman of the Board. Mr.&nbsp;Donnell will also join Avatar&#146;s Board of Directors and will serve on
the Executive Committee of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with his appointment as Chief Executive Officer, Mr.&nbsp;Donnell, age 51, entered
into an employment agreement with Avatar (the &#147;Employment Agreement&#148;) on October&nbsp;19, 2010.
Pursuant to the Employment Agreement, the initial term of Mr.&nbsp;Donnell&#146;s employment commences on
November&nbsp;15, 2010 and ends on December&nbsp;31, 2012. Mr.&nbsp;Donnell&#146;s employment will automatically renew
on January 1 of each subsequent year for additional one-year terms and the term of employment will
continue until Avatar or Mr.&nbsp;Donnell provides written notice of non-renewal at least 90&nbsp;days prior
to the expiration of the term. Mr.&nbsp;Donnell&#146;s employment may also be terminated pursuant to
customary termination provisions set forth in the Employment Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Employment Agreement, Mr.&nbsp;Donnell will receive an annual base salary of
$500,000. Mr.&nbsp;Donnell is also eligible to receive an annual target bonus that will be targeted at
100% of the base salary. The annual target bonus amount is dependent upon the level of performance
targets achieved by Avatar (which determines 75% of the bonus) and subjective performance goals
(which determines 25% of the bonus) established by the compensation committee of the Board of
Directors and approved by the Board of Directors. For calendar year 2010, Mr.&nbsp;Donnell&#146;s bonus is
guaranteed at $64,384, based on the fraction of the year that Mr.&nbsp;Donnell is employed by Avatar.
On the commencement of his employment, Mr.&nbsp;Donnell will be granted an award of 310,000 restricted
shares of common stock. In general, of the 310,000 restricted shares awarded, (i)&nbsp;70,000 shares
(the &#147;time based award&#148;) vest incrementally over a time period ending December&nbsp;31, 2014, and (ii)
up to 240,000 shares (the &#147;performance based award&#148;) vest depending on Avatar&#146;s stock being at
least equal to specified hurdle prices (ranging from $25 to $40) for 20 trading days out of any
consecutive 30-day period of time at dates through December&nbsp;31, 2015, in each case subject to Mr.
Donnell&#146;s continued employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that Avatar terminates Mr.&nbsp;Donnell without Cause (as defined in the Employment
Agreement), Mr.&nbsp;Donnell terminates his employment for Good Reason (as defined in the Employment
Agreement), or Avatar fails to renew the Employment Agreement, Mr.&nbsp;Donnell will receive (A)&nbsp;accrued
and unpaid base salary and vacation earned through the date of termination; (B)&nbsp;provided Mr.
Donnell executes a general release of all claims against Avatar, (x)&nbsp;an amount equal to two times
Mr.&nbsp;Donnell&#146;s base salary and (y)&nbsp;continued coverage under the benefit plans until the end of the
employment term (or, if longer, for 12&nbsp;months); and (C) (i)&nbsp;a number of the time based award shares
that will vest as of the date of termination based on the number of shares that would have vested
during that year and the number of days Mr.&nbsp;Donnell
worked that year; and (ii)&nbsp;any performance based award shares that would have vested on
December&nbsp;31 of the year in which his termination occurs (because some or all of the applicable
provisions of the Employment Agreement were satisfied before the date of such termination).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employment Agreement also includes provisions relating to non-compete, non-solicitation,
confidentiality and compliance with Sections&nbsp;409A of the Internal Revenue Code of 1986, as amended.
In addition, pursuant to the terms of the Employment Agreement, upon the occurrence of a Change of
Control (as defined in the Amended and Restated 1997 Incentive and Capital Accumulation Plan (2005
Restatement), as amended) during the term or within 120&nbsp;days following the termination of Mr.
Donnell&#146;s employment for any reason other than by Avatar for cause or by Mr.&nbsp;Donnell without good
reason, (i)&nbsp;the time based award will vest in full as of the date of the Change in Control, and
(ii)&nbsp;the performance based award will vest as of the date of the Change in Control, but only to the
extent the applicable provisions of the Employment Agreement were satisfied prior to, or in
conjunction with, the Change in Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Donnell has over 20&nbsp;years of experience in homebuilding, land development, and active
adult communities&#151;the prime areas of focus for Avatar. From 2007 to October&nbsp;2010, he Co-Founded
and has been a Principal of The Monticello Group, LLC a specialty real estate advisory firm based
in Sarasota, Florida. From 1995-2004, Mr.&nbsp;Donnell held several executive positions at Dominion
Homes, Inc., a builder of single family homes in Ohio, Kentucky and Indiana. He joined Dominion in
1995 as Chief Financial Officer and served as the firm&#146;s President and Chief Operating Officer from
1999-2004. During his tenure at Dominion, the company achieved significant growth, and
dramatically improved its profitability and market share. From 1984-1995, he held various
senior-level financial and operational positions at Del Webb Corporation, a premier builder of
master-planned, active adult communities. During his time at Del Webb, Mr.&nbsp;Donnell&#145;s
responsibilities included design, development, sales, construction and finance for two highly
successful planned active adult communities&#151;Sun City Hilton Head and Sun City Las Vegas. Mr.
Donnell&#146;s 20&nbsp;years of experience in the real estate industry and his background as a former chief
financial officer enable him to make valuable contributions to Avatar&#146;s Board of Directors. Mr.
Donnell is a member of the board of directors of Las Vegas Land Holdings, LLC. Mr.&nbsp;Donnell
previously served as a director of Visitcare, Inc. from July&nbsp;2005 until March&nbsp;2008 when Visitcare
was purchased by Odyssey HealthCare Holding Company. He also served as a director with Dominion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with his decision to retire as President and Chief Executive Officer of Avatar,
Mr.&nbsp;Kelfer entered into a Separation Agreement with Avatar dated October&nbsp;19, 2010 (the &#147;Separation
Agreement&#148;). Pursuant to the Separation Agreement, Mr.&nbsp;Kelfer will receive the following amounts
as provided for in his existing Amended and Restated Employment Agreement made as of December&nbsp;22,
2008: (a)&nbsp;his base salary at an annualized rate of $450,000 through June&nbsp;30, 2011 (the &#147;Severance
Termination Date&#148;); (b)&nbsp;a bonus for calendar year 2010 in the amount of $450,000; (c)&nbsp;a bonus for
calendar year 2011 in the amount of $225,000 after Mr.&nbsp;Kelfer executes a release of Avatar
following the Severance Termination Date; (d)&nbsp;four annual payments in the amount of $250,000 each
payable in December&nbsp;2010, January&nbsp;2012, January&nbsp;2013 and January&nbsp;2014; and (e)&nbsp;continue to
participate in employee benefit plans and programs through the Severance Termination Date.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;20, 2010, Avatar issued a press release announcing the hiring of Mr.&nbsp;Donnell and
the departure of Mr.&nbsp;Kelfer. A copy of the press release is attached as Exhibit&nbsp;99.1 to this
Current Report on Form 8-K.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(d)&nbsp;&nbsp;&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="11%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release, dated October&nbsp;20, 2010.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Date: October 25, 2010&nbsp;</TD>
    <TD colspan="3" align="left">Avatar Holdings Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Juanita I. Kerrigan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Juanita I. Kerrigan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vice President and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;Index</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="11%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release, dated October&nbsp;20, 2010.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>g24972exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<TITLE>exv99w1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 16pt; margin-top: 12pt"><B><FONT face="'Times New Roman',Times,serif">AVATAR</FONT></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 16pt"><B><U>FOR IMMEDIATE RELEASE</U></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 48pt"><B><U>AVATAR HOLDINGS NAMES JON M. DONNELL PRESIDENT AND CHIEF EXECUTIVE OFFICER; </U><BR>
<U>GERALD KELFER TO RETIRE </U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt"><B>CORAL GABLES, Fla., October&nbsp;20, 2010 </B>&#151; Avatar Holdings Inc. (&#147;Avatar&#148;) &#091;NASDAQ: AVTR&#093;, a leading
real estate company in Florida and Arizona, today announced that Jon M. Donnell, a veteran real
estate executive, is joining the company as President and Chief Executive Officer, effective
November&nbsp;15, 2010. The appointment follows the decision by Gerald D. Kelfer, Avatar&#146;s long-time
President and CEO, to retire. Mr.&nbsp;Kelfer, age 65, remains Vice Chairman of the Board and a
Director. Mr.&nbsp;Donnell will also join Avatar&#146;s Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Donnell, age 51, has over 20&nbsp;years of experience in homebuilding, land development, and active
adult communities&#151;the prime areas of focus for Avatar. From 1995-2004, Mr.&nbsp;Donnell held several
executive positions at Dominion Homes, Inc., a builder of single family homes in Ohio, Kentucky and
Indiana. He joined Dominion in 1995 as Chief Financial Officer and served as the firm&#146;s President
and Chief Operating Officer from 1999-2004. During his tenure at Dominion, the company achieved
significant growth, and dramatically improved its profitability and market share. From 1984-1995,
he held various senior-level financial and operational positions at Del Webb Corporation, a premier
builder of master-planned, active adult communities. During his time at Del Webb, Mr.&nbsp;Donnell&#145;s
responsibilities included design, development, sales, construction and finance for two highly
successful planned active adult communities&#151;Sun City Hilton Head and Sun City Las Vegas. More
recently, from 2007 to present, he Co-Founded and has been a Principal of The Monticello Group, LLC
a specialty real estate advisory firm based in Sarasota, Florida.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Joshua Nash, Chairman of the Avatar Board, said, &#147;We are excited that Jon will be joining the
company as its new President and CEO. He possesses a unique blend of experience, a time-tested
track record, and leadership skills in the most critical segments of Avatar&#146;s business&#151;active
adult communities, land development and homebuilding. This is a rare combination that we believe
will serve Avatar well as it navigates through this economic environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;At the same time, the Board wants to recognize the long-term accomplishments and express its
deepest appreciation to Gerry Kelfer, whose leadership has been so important in building Avatar
into the company it has become since he joined it in 1997. We look forward to Gerry&#146;s continued
involvement as a valued director,&#148; Mr.&nbsp;Nash concluded.
</DIV>


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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Donnell said, &#147;This is a wonderful opportunity for me to apply the broad skills and experience
learned over the past two decades in the real estate business. Avatar has an impressive portfolio
of properties that I believe have the potential to increase in value. I am very much looking
forward to leading the Avatar team and collaborating with its Board. It&#146;s a very exciting time to
lead this company and I am looking forward to it.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Kelfer, added, &#147;I am proud of Avatar and all that we have achieved over the past 14&nbsp;years. Now
is the time to look to the future and put in place new leadership that will take us to our next
phase of growth and development. I look forward to remaining active with the company at the Board
level. In Jon Donnell we gain a very talented executive with a proven track record in building and
growing real estate companies in different market cycles. I am stepping down with the confidence
that our new CEO is the right leader for Avatar going forward and, along with my fellow directors,
fully support him.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to his experience in real estate, Mr.&nbsp;Donnell is a Certified Public Accountant who
began his career with Peat, Marwick, Mitchell &#038; Co. He earned a Bachelor of Science degree in
Business Administration from the University of Arizona.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>About Avatar Holdings<BR></B>
Avatar Holdings Inc. is engaged in real estate operations in Florida and Arizona. Its principal
operations are conducted at Poinciana, Solivita and Bellalago in central Florida near Orlando,
Seasons at Tradition in Port St. Lucie, Florida and at Rio Rico, south of Tucson, AZ. Avatar&#146;s
common shares trade on The Nasdaq Stock Market under the symbol AVTR.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Contact:</B><BR>
Avatar Holdings Inc.<BR>
201 Alhambra Circle<BR>
Coral Gables, FL 33134<BR>
Juanita I. Kerrigan<BR>
(305)&nbsp;442-7000

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