WCI Reports 294% Rise in Second Quarter 2005 Earnings

-- Net income: $75.3 million - up 294.2%

-- Diluted EPS: $1.61 - up 283.3%

-- Revenues: $670.7 million - up 102.0%

-- New orders: $633.5 million - up 24.9%

-- Backlog: $2.40 billion - up 51.9%

-- 2005 EPS guidance raised to $4.10 to $4.30 from previous company estimate of $3.50 to $3.80

-- Third quarter 2005 EPS expected to range between $0.75 and $0.80

-- 2006 EPS estimated to grow at least 15.0%

WCI Communities, Inc. (NYSE: WCI), a leading builder oftraditional and tower residences in highly amenitized lifestylecommunities, today reported record results for the second quarter of2005. For the three months ended June 30, 2005, net income increased294.2% to $75.3 million from $19.1 million for the same period a yearago while diluted earnings per share (EPS) rose 283.3% to $1.61 from$0.42. Revenues for the second quarter of 2005 were $670.7 millioncompared with $332.0 million for the second quarter of 2004, a 102.0%increase.

For the six month period ended June 30, 2005, net income totaled$91.9 million compared with $32.7 million earned during the first halfof 2004 while diluted earnings per share rose 170.8% to $1.95 from$0.72 for the same period a year ago. Revenues increased 90.9% to$1.14 billion from $597.3 million in the year earlier period.

The aggregate value of traditional and tower new orders rose 24.9%to $633.5 million for the second quarter, as price increases andstrategic changes in the mix of products sold more than offset aplanned decline in traditional homebuilding unit order quantity. Thenumber of unit orders declined 15.3% to 764, as the company limitedreleases at several Florida and one Northeastern traditionalhomebuilding community to better align its backlog with expecteddelivery timeframes. The average price of new orders rose 47.2% to$829,000 from $563,000 in the second quarter of 2004, as priceincreases across most communities and a greater percentage of towerorders in the overall mix impacted results. The company's backlog roseto a record $2.40 billion, up 51.9% from the $1.58 billion reported ayear earlier.

"The record results for the second quarter were enhanced by thesale of a significant piece of land in Southeast Florida, whichcontributed approximately 40% of our total gross margin," said JerryStarkey, President and CEO of WCI Communities. "Land sales have beenan important part of our business model over the decades and are anintegral part of our strategy to acquire and build on large parcels ofland. Excluding the parcel sale, earnings for the quarter were upapproximately 46.6% compared with last year's second quarter earnings.In addition to the land sale, significant increases in traditionalhome deliveries and towers under construction fueled our earningsgrowth. We continue to see strong demand for our products. As a resultof the favorable business environment and the excellent forwardvisibility provided by our record backlog of $2.40 billion, we areraising our 2005 earnings per share projection to a range of $4.10 to$4.30 from our previous guidance of $3.50 to $3.80. This representsgrowth of 56% to 64% over 2004 levels. In addition, we believeearnings will grow at least 15% in 2006."

Change in Auditors

During the most recent quarter, WCI announced that it terminatedits auditor relationship with PricewaterhouseCoopers, stating thatthere was no disagreement with that firm, and engaged Ernst & Young.

Also during the quarter, WCI revised its calculations ofcapitalized interest with respect to its traditional homebuilding andtower inventories to include additional costs on which interest iscapitalized on real estate inventory. Based upon Statement ofFinancial Accounting Standard No. 34, Capitalization of Interest Cost,WCI now includes the underlying developed land costs in itscalculation of capitalized interest for tower residences underconstruction and now includes the underlying developed land costs andhome construction costs in its calculation of capitalized interestrelated to traditional homes under construction. This revisionresulted in an increase in cost of goods sold and a decrease ininterest expense in this quarter. The net effect of this revisionadded $4.8 million to the WCI's net income for the quarter, of which$3.3 million relates to periods prior to this quarter.

Traditional Homebuilding

Second quarter 2005 revenues in the Traditional HomebuildingDivision were $272.2 million, up 107.6% from the $131.1 million postedin the second quarter of 2004. Second quarter unit deliveries totaled524 compared with 310 during the same period last year, aided by 56deliveries from the company's Northeast Division and 27 from itsMid-Atlantic Division. The average traditional home price at deliverywas up 17.0% to $495,000 from $423,000 in the same period last year,reflecting increased pricing across much of the company's products aswell as the inclusion of the Mid-Atlantic Division, which carried anaverage closing price of over $1 million. Gross margin, including lotsales, decreased to 16.4% of from 19.1% in the same period a year ago,but increased 50 basis points from last quarter, notwithstanding theincrease in capitalized interest cost.

Starkey added, "Our traditional homebuilding margins continue tobe impacted by deliveries of homes that were in backlog longer thanhistorical averages, due to permitting and hurricane-related delays,and by purchase price accounting adjustments related to our twoacquisitions. During the quarter, 49% of the homes we delivered werein backlog for over 12 months. This aged backlog, impacted by higherhomebuilding costs, lowered our margins. Going forward, we expect theimpact of these cost increases will be offset by higher sales prices.Also expected to be less of a factor as the year progresses are thepurchase price accounting adjustments related to the acquisitions ofour Northeast and Mid-Atlantic divisions, which this quarter reducedtraditional gross margin by 85 basis points. Additionally, marginswere impacted by the capitalized interest revisions implemented thisquarter, which caused the cost of sales to increase $4.4 million andreduced traditional homebuilding gross margin as a percent of revenueby 160 basis points. Our expectations of improved margins over theremainder of 2005 and 2006 remain unchanged, although we have revisedour guidance to take into account the revisions to capitalizedinterest described above. Consequently, we expect third quartermargins to increase to 18% to 18.5% and to rise to the 19% to 20%range in the fourth quarter."

For the six month period ended June 30, 2005, traditionalhomebuilding revenues rose 119.2% to $459.2 million. The companyclosed 905 homes compared to 505 for the same period a year ago. Grossmargin as a percentage of revenue decreased to 16.2% vs. 19.9% in thesame period a year ago. For the full year, we expect traditionalhomebuilding margins to be in the 18% to 19% range. For 2006,traditional homebuilding margins are expected to expand to between 21%and 24%.

The value of traditional new orders for the second quarter 2005rose 1.0% to $305.0 million, while the number of unit orders declined37.0% to 444. WCI's Northeast Division contributed 22 orders valued at$14.8 million (average price of $672,000) while the company'sMid-Atlantic Division recorded 37 orders with a value of $55.1 million(average price of $1,488,000). Overall, Traditional Homebuildingbacklog ended the second quarter at a record $1.47 billion, up 56.2%over the second quarter 2004's $941.3 million.

Starkey added, "During 2004, with traditional homebuilding ordersup approximately 60.0% in dollars and units, our backlog grew quickerin some markets than the municipalities processed building permits.This was exacerbated by the production delays caused by the hurricanesin Florida last year. This year, we made a strategic decision to stoptaking orders, or limit product releases, in communities where ourbacklog was greater than 12 months or where permitting delays forinfrastructure or building permits would push deliveries so far intothe future that visibility on our costs would be limited. For the mostpart, these communities are in markets where demand is high and landis scarce. We currently project that our traditional homebuilding unitorders will be down 15% to 20% for all of 2005, but expect the totaldollar value of those orders to be 20% to 25% higher than the prioryear. We expect that we will see steady unit and Dollar order growthin 2006 as we re-open several sales centers towards the end of thisyear, and commence sales in 10 to 12 new traditional homebuildingcommunities, where we expect to build up to 5,000 new traditionalhomes. Although the company's total number of traditional activeselling communities in 2006 will be similar to 2005's count, newcommunities added in 2006 are expected to produce substantially morein annual sales than the 2005 close-out communities being replaced."

Tower Homebuilding

Second quarter revenues in the Tower Homebuilding Division rose57.6% to $228.9 million from $145.2 million in the second quarter of2004. During the quarter, 18 towers were under construction andrecognizing revenue compared with 13 in the same period a year ago.Gross margin as a percentage of revenue decreased to 26.3% from 32.1%in the same period last year. The year-over-year decline in towermargins is predominately mix-driven, as fewer high-margin finishedinventory units were sold in this year's second quarter as compared tolast year. Additionally, second quarter 2004 benefited from costsavings recognized on completed towers where reserves for sellingconcessions and other costs were not used, which added 520 basispoints to the gross margin. This quarter, tower adjustments tocompleted buildings were insignificant. Another factor influencingmargins during the quarter was the revision in capitalized interestcalculations, which added $2.7 million of capitalized interest cost totower cost of goods sold. This reduced tower gross margin as a percentof revenue by 120 basis points.

For the six month period, revenues in the Tower HomebuildingDivision jumped 55.8% to $442.4 million, benefiting from more towersunder construction with a higher percentage of units sold. Grossmargin as a percentage of revenue declined to 26.5% from 30.3% thesame period last year, due principally to changes in mix and costsavings recognized in the prior period on completed towers.

The value of new orders for the quarter increased 60.0% to $328.5million on a 62.4% increase in unit orders, to 320 units. Ordersincreased on the strength of customer demand for five new towers thatbegan converting reservations to contracts during the quarter, whichtogether contributed 212 orders. Unit prices for those five towersrange from $700,000 to $2.2 million. The average sales price for towerunits sold in the second quarter of 2005 was $1,027,000 compared with$1,042,000 in the second quarter 2004. Tower backlog reached $922.2million, a 43.9% increase over the $640.9 million backlog at the endof the second quarter of 2004.

Real Estate Services

Second quarter 2005 revenues in the Real Estate Services Divisiontotaled $49.7 million, up 19.8% from $41.5 million recorded for thesecond quarter of 2004. Strength in the real estate brokerage businessaccounted for much of the increase. Second quarter gross margin as apercentage of revenue increased to 19.0% from 18.6% in the same perioda year ago as overheads were leveraged over the higher level ofrevenue.

For the six month period revenues in the Real Estate ServicesDivision totaled $87.6 million, up 24.6% from the $70.3 millionrecorded for the six months ended June 30, 2004. Gross margin as apercentage of revenue over the period increased to 17.7% from 17.0% inthe same period a year ago on stronger results from the company's realestate brokerage and mortgage banking businesses.

Other Items

Amenity operations experienced a loss of $2.0 million for thesecond quarter versus a $1.6 million loss in the second quarter of2004 as operating deficits associated with new amenity facilities morethan offset an increase in membership revenues.

On May 13, 2005, the company announced the sale of a 506-acreparcel of land in Jupiter, Florida. This land sale generated revenuesof $100.0 million and a 76.6% gross margin as a percent of revenue.The company does not anticipate any sizeable land sales for theremainder of 2005. For 2006, the company expects land sale revenues toapproximate 2005 levels, although the gross margin percentage ofrevenue will likely be lower, more in line with the 35.0% to 50.0%achieved historically.

Other income and hurricane recoveries for the second quartertotaled $2.1 million compared with $8.6 million for the same period ayear ago. The 2004 period included $7.9 million in proceeds from thesale of WCI's partnership interest in Bighorn Development, L.P.

Interest expense for the second quarter declined to $1.6 millioncompared with $10.1 million in the same period a year ago, due inlarge part to increased interest capitalization resulting from therevisions to our capitalized interest calculations described earlierin this release. Going forward, it is anticipated that interestexpense will be relatively insignificant as the company will becapitalizing a significant majority of the interest incurred to workin process inventories which will be expensed as related revenues arerecognized.

During the quarter, the company purchased $17.0 million of its 105/8% senior subordinated notes due February 2011 (callable beginningin February 2006) on the open market. The purchase of these bondsresulted in a pre-tax charge of $1.5 million related to the earlyrepayment of debt.

Selling, general, and administrative expenses including realestate taxes (SG&A) as a percentage of revenue for the second quarter2005 declined to 9.1%, compared with 12.7% in the second quarter ofthe previous year, as expenses were spread over greater revenue.

Cash Flow/Financial Position/Balance Sheet

For the six months ended June 30, 2005, net cash used by operatingactivities, including the purchase and development of real estateinventories, totaled $187.7 million compared with cash used of $121.6million in the same period a year ago. Excluding land purchases ofapproximately $114.0 million, operating activities consumed net cashflow of $73.7 million.

Total liquidity, measured as the sum of cash plus availablecapacity under the unsecured revolving facility, totaled approximately$561.8 million at June 30, 2005. The maximum amount available toborrow under the company's senior unsecured revolving credit facilityis $750.0 million. The facility matures in August 2008. The ratio ofnet debt to net capitalization of 58.7% increased 270 basis pointscompared to 56.0% at June 30, 2004 due to the acquisition of ourMid-Atlantic division but declined 110 basis points from March 31,2005. The company expects leverage to continue to decline throughoutthe rest of the year.

GUIDANCE

For 2005, the company anticipates:

-- EPS of $4.10 to $4.30, growth of 56.0% to 64.0% over 2004

-- Net income of $195.0 million to $205.0 million

-- Revenues of $2.7 to $2.9 billion

-- Third quarter EPS to range between $0.75 and $0.80 compared to $0.62 in the third quarter of 2004

-- Order value growth for traditional and tower homebuilding combined of 10% to 15%; unit orders down 10% to 15%

-- Traditional Homebuilding Division dollar order growth of approximately 20% to 25%; unit orders down approximately 15% to 20%

-- Tower Homebuilding Division order value comparable to 2004, (flat to down 5%,) unit orders down 10% to 15% due to timing of release of new towers.

-- Traditional Homebuilding Division gross margins for the third quarter to reach between 18% and 18.5%, to increase to 19% to 20% in the fourth quarter, and to average 18% to 19% for the full year

-- Tower Homebuilding Division gross margins to range from 25% to 28%

-- No significant land sales for the remainder of the year.

Looking ahead to 2006, the company expects:

-- EPS growth of at least 15%

-- Land sales in a similar range as 2005, but at margins more in line with historical averages of 35% to 50%

-- Traditional Homebuilding Division gross margins between 21% and 24%

-- Tower Homebuilding Division gross margins between 25% and 29%

-- Begin selling in 10 to 12 new traditional homebuilding communities that replace close-out communities. The company expects to eventually build up to 5,000 traditional homes in the new selling communities.

Conference Call

WCI will conduct a conference call today at 2:00 PM EDT inconjunction with this release. The call will be broadcast live athttp://www.wcicommunities.com in the Investor Relations area or can beaccessed by telephone at (706) 679-5866 and asking for the WCICommunities conference call. A replay will be available after the callfor a period of 36 hours by dialing (706) 645-9291 and enteringconference code 7930273. The replay will also be available on theCompany's website. A slide presentation will accompany the call andcan be accessed on the Company's website in the Investor Relationssection.

About WCI

WCI Communities, Inc., named America's Best Builder in 2004 by theNational Association of Home Builders and Builder Magazine, has beencreating amenity-rich, master-planned lifestyle communities since1946. Florida-based WCI caters to primary, retirement, and second-homebuyers in Florida, New York, New Jersey, Connecticut, Maryland andVirginia. The company offers traditional and tower home choices withprices from the high-$100,000s to more than $10 million and features awide array of recreational amenities in its communities. In additionto homebuilding, WCI generates revenues from its Prudential FloridaWCI Realty Division, its mortgage and title businesses, and itsrecreational amenities, as well as through land sales and jointventures. The company currently owns and controls developable land ofover 17,000 acres.

For more information about WCI and its residential communitiesvisit www.wcicommunities.com.

Certain information included herein and in other company reports,Securities and Exchange Commission filings, statements andpresentations is forward-looking within the meaning of the PrivateSecurities Litigation Reform Act of 1995, including, but not limitedto, statements about the company's anticipated operating results,financial resources, ability to acquire land, ability to sell homesand properties, ability to deliver homes from backlog, and ability tosecure materials and subcontractors. Such forward-looking informationinvolves important risks and uncertainties that could significantlyaffect actual results and cause them to differ materially fromexpectations expressed herein and in other company reports, filings,statements and presentations. These risks and uncertainties includeWCI's ability to compete in real estate markets where we conductbusiness; the availability and cost of land in desirable areas in itsgeographic markets and elsewhere and our ability to expandsuccessfully into those areas; WCI's ability to obtain necessarypermits and approvals for the development of its lands; theavailability of capital to WCI and our ability to effect growthstrategies successfully; WCI's ability to pay principal and intereston its current and future debts; WCI's ability to maintain or increasehistorical revenues and profit margins; availability of labor andmaterials and material increases in labor and material costs;increases in interest rates and availability of mortgage financing;the level of consumer confidence; adverse legislation or regulations;unanticipated litigation or legal proceedings; natural disasters; andchanges in general economic, real estate and business conditions. Ifone or more of the assumptions underlying our forward-lookingstatements proves incorrect, then the company's actual results,performance or achievements could differ materially from thoseexpressed in, or implied by the forward-looking statements containedin this report. Therefore, we caution you not to place undue relianceon our forward-looking statements. We undertake no obligation toupdate or revise any forward-looking statements, whether as a resultof new information, future events or otherwise. This statement isprovided as permitted by the Private Securities Litigation Reform Actof 1995.

WCI Communities, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

June 30, Dec. 31,
2005 2004
----------- -----------
Assets

Cash and cash equivalents $67,534 $101,973
Contracts receivable 1,092,912 758,406
Real estate inventories 1,737,443 1,477,966
Property and equipment 208,970 176,589
Other assets 446,027 417,458
----------- -----------

Total assets $3,552,886 $2,932,392
=========== ===========

Liabilities and Shareholders' Equity

Accounts payable, accruals and other
liabilities $1,080,153 $894,292
----------- -----------
Debt obligations:
Senior unsecured credit facility 255,700 190,730
Mortgages and notes payable 237,560 150,238
Senior subordinated notes 860,903 678,321
Contingent convertible senior
subordinated notes 125,000 125,000
----------- -----------
Total debt obligations 1,479,163 1,144,289
----------- -----------

Total shareholders' equity 993,570 893,811
----------- -----------

Total liabilities and shareholders' equity $3,552,886 $2,932,392
=========== ===========


Other Balance Sheet Data
Debt $1,479,163 $1,144,289
Shareholders' equity 993,570 893,811
----------- -----------
Capitalization $2,472,733 $2,038,100
=========== ===========
Ratio of debt to capitalization 59.8% 56.1%

Debt, net of cash and cash equivalents $1,411,629 $1,042,316
Shareholders' equity 993,570 893,811
----------- -----------
Capitalization, net of cash and cash
equivalents $2,405,199 $1,936,127
=========== ===========
Ratio of net debt to net capitalization 58.7% 53.8%







WCI Communities, Inc.
Selected Revenues and Earnings Information
(in thousands, except per share data)


For the three For the six
months ended months ended
June 30, June 30,
------------------- --------------------
2005 2004 2005 2004
--------- --------- ---------- ---------
REVENUES

Homebuilding:
Homes $259,523 $130,992 $440,287 $207,379
Lots 12,674 92 18,932 2,139
--------- --------- ---------- ---------
Total traditional 272,197 131,084 459,219 209,518
Towers 228,889 145,211 442,413 283,876
--------- --------- ---------- ---------
Total homebuilding 501,086 276,295 901,632 493,394

Real estate services 49,688 41,500 87,608 70,271
Amenity membership and
operations 18,103 11,973 43,776 27,050
Land sales 100,000 685 100,000 3,687
Other 1,778 1,566 3,503 2,930
--------- --------- --------------------

Total revenues 670,655 332,019 1,136,519 597,332
--------- --------- ---------- ---------


GROSS MARGIN

Homebuilding:
Homes 41,890 25,089 69,505 40,749
Lots 2,740 (12) 4,928 979
--------- --------- ---------- ---------
Total traditional 44,630 25,077 74,433 41,728
Towers 60,187 46,572 117,418 86,145
--------- --------- ---------- ---------
Total homebuilding 104,817 71,649 191,851 127,873

Real estate services 9,445 7,729 15,532 11,928
Amenity membership and
operations (2,047) (1,565) (2,277) 725
Land sales 76,617 23 76,586 1,684
Other (67) 62 (46) (56)
--------- --------- ---------- ---------

Total gross margin 188,765 77,898 281,646 142,154
--------- --------- ---------- ---------


OTHER INCOME AND EXPENSES
Equity in losses (earnings)
from joint ventures 39 220 (1,096) (726)
Other income (1,031) (8,608) (3,954) (16,626)
Hurricane recoveries, net (1,055) - (1,861) -
Selling, general and
administrative, including
real estate taxes, net 61,066 42,220 114,657 81,555
Depreciation and
amortization 3,896 3,280 7,573 6,501
Interest expense, net 1,606 10,144 15,760 18,534
Expenses related to early
repayment of debt 1,519 - 1,519 -
--------- --------- ---------- ---------
Income before minority
interests and income taxes 122,725 30,642 149,048 52,916
Minority interests 653 (839) (126) (839)
Income tax expense 46,770 12,365 57,293 21,091
--------- --------- ---------- ---------

Net income $75,302 $19,116 $91,881 $32,664
========= ========= ========== =========


EARNINGS PER SHARE
Basic $1.67 $0.43 $2.04 $0.74
Diluted $1.61 $0.42 $1.95 $0.72

WEIGHTED AVERAGE NUMBER
OF SHARES
Basic 45,199 44,071 45,027 43,893
Diluted 46,915 45,736 47,037 45,607

OPERATING DATA
Interest incurred, excluding
warehouse credit facility $26,745 $19,942 $49,760 $39,230
Interest included in cost
of sales $22,137 $5,088 $30,104 $10,132








WCI Communities, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)


For the six
months ended
June 30,
---------------------
2005 2004
---------- ----------
Cash flows from operating activities:
Net income $91,881 $32,664
Increase in real estate inventories (110,424) (227,583)
(Increase) decrease in contracts receivable (334,506) 145,835
Increase (decrease) in customer deposits 144,142 (5,862)
Increase in restricted cash (13,368) (16,997)
Increase (decrease) in accounts payable and
other liabilities 8,549 (68,503)
All other 26,027 18,862
---------- ----------
Net cash used in operating activities (187,699) (121,584)
---------- ----------

Cash flows from investing activities:
Net cash paid for acquisition (136,372) (53,517)
Other (18,116) (25,445)
---------- ----------
Net cash used in investing activities (154,488) (78,962)
---------- ----------

Cash flows from financing activities:
Net borrowings under debt obligations 306,068 178,003
All other 1,680 (2,871)
---------- ----------
Net cash provided by financing activities 307,748 175,132

---------- ----------
Net decrease in cash and cash equivalents $(34,439) $(25,414)
========== ==========


SUPPLEMENTAL INFORMATION
Reconciliation of cash flows from operating
activities to EBITDA (1)
Net cash used in operating activities $(187,699) $(121,584)
Interest expense, net 15,760 18,534
Interest included in cost of sales 30,104 10,132
Expenses related to early repayment of debt 1,519 -
Income tax expense 57,293 21,091
Depreciation and amortization 7,573 6,501
Increase in real estate inventories 110,424 227,583
Increase (decrease) in contracts receivable 334,506 (145,835)
(Increase) decrease in customer deposits (144,142) 5,862
Increase in restricted cash 13,368 16,997
(Increase) decrease in accounts payable
and other liabilities (8,549) 68,503
All other (26,027) (18,862)
---------- ----------
Total EBITDA $204,130 $88,922
========== ==========


(1) Earnings before interest, taxes, depreciation and amortization
(EBITDA) is not a generally accepted accounting principle (GAAP)
financial statement measurement. EBITDA should not be considered an
alternative to cash flows from operations determined in accordance
with GAAP as a measure of liquidity. The Company's management believes
that EBITDA is an indication of the Company's ability to generate
funds from operations that are available to pay principal and interest
on debt obligations and to meet other cash needs. A reconciliation of
cash from operating activities to EBITDA, the most directly comparable
GAAP measure, is provided above.






WCI Communities, Inc.
Homebuilding Operational Data
(in thousands)


For the three For the six
months ended months ended
June 30, June 30,
--------------------- ---------------------
2005 2004 2005 2004
--------- ----------- ----------- ---------

Combined Traditional and
Tower Homebuilding
------------------

(a)Homes Closed (Units) 656 631 1,056 857

Net New Orders (Units) 764 902 1,671 1,711

Contract Values of
New Orders $633,520 $507,416 $1,261,672 $966,360

Average Selling Price
Per New Order $829 $563 $755 $565

Traditional Homebuilding
------------------------

Average Selling Price
Per Home Closed $495 $423 $487 $411

Homes Closed (Units) 524 310 905 505

Net New Orders For
Homes (Units) 444 705 1,160 1,362

Contract Values of
New Orders $305,018 $302,115 $751,541 $553,801

Average Selling Price
Per New Order $687 $429 $648 $407

Tower Homebuilding
------------------

(a)Homes Closed (Units) 132 321 151 352

Net New Orders (Units) 320 197 511 349

Contract Values of
New Orders $328,502 $205,301 $510,131 $412,559

Average Selling Price
Per New Order $1,027 $1,042 $998 $1,182

----------------------------------------------------------------------

June 30,
-----------------------
2005 2004
----------- -----------

Combined Traditional and
Tower Homebuilding
------------------
Aggregate Backlog Contract
Values, Traditional and
Tower Homebuilding $2,395,087 $1,582,160

Traditional Homebuilding
------------------------

Backlog (Units) 2,503 1,973

Backlog Contract Values $1,472,851 $941,279

Active Selling Communities
at the End of the Period 30 21

Tower Homebuilding
------------------

Cumulative Units in Backlog 1,827 855

Cumulative Contract Values $2,020,973 $1,046,766

Less: Cumulative
Revenues Recognized (1,098,737) (405,885)

----------- -----------
Backlog Contract Values $922,236 $640,881
=========== ===========

Towers under construction
during the period
recognizing revenue 18 13


(a) The Company uses the percentage of completion method to recognize
revenue on sold tower units. Accordingly, the closing of tower homes
corresponds with the collection of contracts receivable.