Apple Homes Announces 3rd Quarter Results.

AUGUSTA, Ga.--(BUSINESS WIRE)--March 5, 1999--Apple Homes Corporation (OTC/BB:APHC) a leading retailer in manufactured housing, today released its third quarter results, reporting a loss of $134,800 for the quarter ended December 31,1998, bringing the company's year-to-date income to $112,182.

"The loss resulted from soft sales in Apple Homes' area during the period and poor management in two locations -- Statesboro and Waynesboro, Georgia. Both offices have been restaffed, with the fourth quarter results now looking encouraging," said E.Samuel Evans, President & CEO.

"Although a loss was incurred during the quarter, Mr. Evans pointed out, assets increased $966,030 during the same 3 month period. Apple homes is in the process of expanding its locations, having already opened four new locations during this fiscal year, with a fifth new sales center opening in Aiken, South Carolina later this month," he said. This location, across the Savannah River from our corporate facility in Augusta, Georgia, is in the Augusta-Thomson marketing area.

A recent study by the National Association of Home Builders pinpointed Augusta-Aiken as the most affordable housing area in the United States. An independent survey by a local television station shows Apple Homes as the number one recognized name in the same market.

The private placement of approximately 900,000 shares of Southern States Lenders, Inc. to 15 individuals is expected to be closed shortly. As previously announced, about 200,000 shares will be spun off in the form of a dividend to Apple Homes shareholders. One share of Southern States Lenders, Inc. is to be distributed for every 10 shares of Apple Homes Corporation.

Web sites are being developed for both Apple and Southern States.

Apple Homes represents eight manufacturers and is the largest retailer in the United States for General Housing Corporation of Waycross, Georgia.

"Safe Harbor" Statement

Except for the historical information contained herein, certain of the matters discussed in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which involve certain risks and uncertainties, including but not limited to, changes in general economic conditions, material prices , labor costs, interest rates, consumer confidence, competition, environmental factors, and governmental regulations affecting the company's operations.