On January 20, 2016, Carlson Capital, L.P. announced that it has engaged in discussions with Forestar Group Inc.'s management concerning the business, operations, governance, management, strategy and future plans of the Company. In addition, Carlson Capital announced that, based on its review and these discussions, it has determined that changes to the Company's Board of Directors may be in the best interest of all stockholders. As such, Carlson Capital announced that it intends to engage in further discussions with the Company's management, as well as with the members of the Board of Directors and other stockholders, concerning possible changes to the composition of the Board of Directors.

Carlson Capital also announced that it may propose the nomination of one or more candidates for election to the Board of Directors in connection with the Company's 2016 annual meeting of stockholders.