Apple Homes Reports First-Quarter Fiscal 2000 Results.

AUGUSTA, Ga.--(BUSINESS WIRE)--Sept. 15, 1999--

Apple Homes Corp. (OTC BB:APHC), a leading retailer in manufactured housing, today reported revenues of $9 million, an increase of 11 percent, and a net loss of $8,404 for the first quarter of fiscal 2000, the period ended June 30, 1999, vs. an income of $149,227 for the same fiscal quarter for 1999.

Profits before taxes and minority Interest amounted to $8,758, compared with $133,698 for the first quarter of the prior year. The decreases resulted chiefly from the reduction in gross profit that the company is earning, declining from 21.4% a year ago to 17.5% in 1999.

The company attributed its reduced gross profit to competition within the industry and a soft market continuing to cause the lowered percentage, although it anticipates changes in the market within the next couple of quarters.

The company also said that internally it is effecting changes to reduce costs and increase profits, as evidenced by a reduction in operating costs from 29.8 percent at June 30, 1998, to 18.7 percent at June 30, 1999, and it closed down its Pelzer, S.C., sales center because of unprofitability.

The company announced that it has filed a Form 10 Registration Statement with the SEC for trading Apple Homes Corp. shares under the symbol APHC on the OTC Bulletin Board, anticipating that the registration will become effective within the next few weeks. -0-

                           Apple Homes Corp.
                           Financial Summary
                        3 months ended June 30,

                                      1999              1998

Revenues                           $9,140,675        $8,142,694
Net Income:
 Before taxes &
 minority interest                 $    8,758        $  133,698
Net Income                         $   (8,404)       $  149,227
Net Income per share               $   (0.004)       $     0.07
Common Shares outstanding
 (weighted average)                 2,091,539         1,811,942

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

"Safe Harbor" Statement: Except for the historical information contained herein, certain of the matters discussed in this news 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.