Consolidated-Tomoka Land Co. Announces Authorization of Stock Repurchase Program and Change in Dividend Policy

Consolidated-Tomoka Land Co. (Amex: CTO; NYSE Alternext US: CTO) (the “Company”) announced that its Board of Directors has authorized a program to repurchase shares of the Company’s common stock having an aggregate value of up to $8,000,000. The Company anticipates reducing its quarterly dividend to $0.025 per share, effective for the 2009 first quarter dividend to fund the program.

William H. McMunn, President and Chief Executive Officer stated, “In light of the Company’s current stock price, the Board has determined that it is prudent to reallocate a portion of capital used to pay dividends towards a stock repurchase program. While we recognize the importance of a dividend to certain of our shareholders, the Board strongly believes that given the existing market price, a stock repurchase program will provide more shareholder value than maintaining the current level of dividends. Based on current economic conditions, the Company has no plans to increase Company debt to fund this repurchase plan.”

Mr. McMunn further emphasized, “The Company expects to continue paying a dividend at a reduced rate.”

The Board authorization permits the Company to effect the repurchases from time to time through a variety of methods including open market repurchases and privately negotiated transactions. There can be no assurance as to the amount, timing or prices of repurchases. The specific timing and amount of repurchases will vary based on market conditions and other factors. The stock repurchase program may be suspended, modified, extended or terminated by the Board at any time and has no expiration date.

Consolidated-Tomoka Land Co. is a Florida-based company primarily engaged in converting Company owned agricultural lands into a portfolio of net lease income properties strategically located in the Southeast, through the efficient utilization of 1031 tax-deferred exchanges. The Company has low long-term debt and generates over $9 million in annual before tax cash flow from its real estate portfolio. The Company also engages in selective self- development of targeted income properties. The Company’s adopted strategy is designed to provide the financial strength and cash flow to weather difficult real estate cycles. Visit our website at www.ctlc.com.