Exhibit 99.1

     Avatar Holdings Inc. Reports Results Of Partial Redemption Of 7% Notes

    CORAL GABLES, Fla., Aug. 1 /PRNewswire-FirstCall/ -- Avatar Holdings Inc.
(Nasdaq: AVTR) reported that the call for redemption of $60,000,000 principal
amount of its 7% Convertible Subordinated Notes due April 1, 2005 (the
"Notes") as of July 31, 2003, resulted in redemption of $49,913,000 principal
amount of the Notes.  Holders of $10,087,000 principal amount of the Notes
elected to convert, resulting in the issuance of 317,199 shares of Avatar
Common Stock. In addition, holders of $343,000 principal amount of Notes which
were not called for redemption also elected to convert, resulting in the
issuance of 10,786 shares of Avatar Common Stock.

    As of the close of business on July 31, 2003, there are 8,733,885 shares
of Avatar Common Stock and $34,086,000 principal amount of the Notes
outstanding.

    Avatar Holdings Inc. is primarily engaged in real estate operations in
Florida and Arizona.  Its principal real estate operations are conducted at
Poinciana, Solivita and Bellalago in central Florida near Orlando, Harbor
Islands on Florida's east coast, Cory Lake Isles in Tampa, Florida, and at Rio
Rico, south of Tucson, AZ.  Avatar's common shares trade on The Nasdaq Stock
Market under the symbol AVTR.  The 7% Notes trade on The Nasdaq SmallCap
Market under the symbol AVTRG.

    Certain statements discussed herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of results to differ materially from any future
results, performance or achievements expressed or implied by such forward-
looking statements.  Such risks, uncertainties and other important factors
include, among others: the successful implementation of Avatar's business
strategy; shifts in demographic trends affecting demand for active adult
communities and other real estate development; the level of immigration and
in-migration to regional market areas; international (in particular Latin
America), national and local economic conditions and events, including
employment levels, interest rates, consumer confidence, the availability of
mortgage financing and demand for new and existing housing; access to future
financing; geopolitical risks; competition; changes in, or the failure or
inability to comply with, government regulations; and other factors as are
described in Item 7 (Management's Discussion and Analysis of Financial
Condition and Results of Operations) of Avatar's Form 10-K.



SOURCE  Avatar Holdings Inc.
    -0-                             08/01/2003
    /CONTACT:  Juanita I. Kerrigan, Avatar Holdings Inc., +1-305-442-7000/
    /Web site:  http://www.avatarhomes.com /
    (AVTR)

CO:  Avatar Holdings Inc.
ST:  Florida
IN:  CST RLT
SU:  FNC