Brookfield Homes Reports First Quarter Earnings Growth And Current 2003 Backlog Of 70%.

Business Editors

DEL MAR, Calif.--(BUSINESS WIRE)--May 5, 2003

Investors, analysts and other interested parties can access Brookfield Homes' Supplemental Information Package on Brookfield Homes' website under the Investor Relations/Financial Reports section at www.brookfieldhomes.com. Brookfield Homes' first quarter investor conference call can be accessed by teleconference on May 6, 2003 at 11:00 am (Eastern Time) at 416-695-5261 or 1-877-461-2816. The archived teleconference may be accessed by dialing 416-695-5796 or 1-877-244-9054 with access code 8666 through May 20, 2003. Alternatively, the conference call can be accessed by webcast on the Brookfield Homes' website at www.brookfieldhomes.com.

Brookfield Homes (NYSE:BHS) Corporation today announced strong financial results for the first quarter ended March 31, 2003, as a result of a $9.6 million net after tax profit on the sale of Riverside lots.

Results of Operations                  Three Months Ended March 31
                                       ---------------------------
(Millions, except per share amounts)      2003                2002
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Total revenue                            $ 144               $ 163
Gross margin                                40                  36
Net income                                  15                   7
Earnings per share                       $0.45               $0.22
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Financial Highlights

Brookfield Homes began trading on the New York Stock Exchange on January 7, 2003, under the symbol BHS. For the first quarter ended March 31, 2003, Brookfield Homes:

-- Achieved net income of $15 million, an $8 million increase

over 2002, and earnings per share of $0.45, a $0.23 increase

over the previous year. This increase includes a $9.6 million

profit on the sale of approximately 2,600 entitled lots in

Riverside, California.

-- Net income before the sale of 2,600 lots was $5 million, a

decrease of $2 million from the previous year. The decrease

was due to fewer active projects and weather delays resulting

in 149 fewer homes closed during the first quarter of 2003.

-- Generated $11 million of operating cash flow, which improved

the company's net debt to total capitalization ratio from 50%

at the end of 2002 to 49% at March 31, 2003.

"Our financial performance reflects the strength of the residential housing markets, with the majority of planned home closings achieved for the year, as well as the success of our active asset management strategy. In response to continued strong market conditions, we have taken steps to sell lot inventory that is not required within the next five to seven years for our housing operation for a significant gain," commented Ian Cockwell, Brookfield Homes' President and Chief Executive Officer.

First Quarter Operating Highlights

Brookfield Homes continued to benefit from the low interest rate environment during the first quarter of 2003. As of May 5, 2003, the company achieved 70% of its 2003 planned 1,550 home closings. This positions us to achieve our targeted 2003 earnings and cash flow goals.

All regions in the company's operations are on track with progress being made on existing developments.

-- San Diego/Riverside - Closed the sale of approximately 2,600

entitled lots in Riverside for net sale proceeds of $52

million and an after tax profit of $9.6 million. Also in

Riverside, Brookfield Homes continued grading and opened

models at Morningstar, which is scheduled to deliver over 190

homes in 2003. In addition, grading continues on four new

projects in San Diego County, a market in which Brookfield

Homes owns approximately 3,183 lots. The company expects to

deliver its first homes in these communities to homebuyers in

early 2004.

-- Southland/Los Angeles - Successfully opened two new

communities achieving to date over 70% of planned 2003 sales.

-- San Francisco Bay Area - Successfully opened in March 2003 our

first community in Windemere, achieving over 50% of planned

2003 sales in the two months after opening. We plan to open

another two new communities in the San Francisco Bay Area

during the second quarter of 2003.

-- Northern Virginia - Continued to develop the current phases of

the Braemar master-planned community where we expect in 2003

our best ever results due to the strength of this market.

Outlook

"While the national economic environment remains slow, homeowners continued to trade-up, a trend that benefits Brookfield Homes as a builder of move-up and luxury homes. We remain on track to deliver approximately 2,000 homes annually by 2005. We are confident that we can continue to deliver strong bottom-line growth and enhance shareholder value by leveraging our local market expertise and financial strength to invest in new market opportunities while maintaining our focus on actively managing our assets," concluded Cockwell.

Brookfield Homes Corporation

Brookfield Homes Corporation is a residential homebuilder and land developer, building homes and developing land in master-planned communities and infill locations. We design, construct and market single-family and multi-family homes primarily to move-up and luxury homebuyers. We also develop land for our own communities and sell lots to other homebuilders. Our portfolio includes over 20,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los Angeles; San Diego / Riverside; and Northern Virginia markets. For more information, visit the Brookfield Homes website at www.brookfieldhomes.com.

Note: Certain statements in this press release that are not historical facts, including information concerning expected home sales, closings and deliveries (and the timing thereof), the timing of expected community openings, possible or assumed future results of operations of the company and those statements preceded by, followed by, or that include the words "planned", "should", "expected", "targeted," "scheduled" or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the anticipated future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include, but are not limited to: changes in general economic, real estate and other conditions; mortgage rate changes; availability of suitable undeveloped land at acceptable prices; adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labor or materials or increases in their costs; ability to develop and market our master-planned communities successfully; confidence levels of consumers; ability to raise capital on favorable terms; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability of adequate coverage and ability to obtain surety bonds; competitive conditions in the homebuilding industry, including product and pricing pressures; and additional risks and uncertainties referred to in our Form 10-K and other SEC filings, many of which are beyond our control. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

                    Brookfield Homes Corporation
                  Condensed Statements of Net Income

                                         Three Months Ended March 31
                                         ---------------------------
(thousands, except per share amounts)
 Unaudited                                      2003            2002
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Revenue
  Housing                                   $ 81,443       $ 157,301
  Land and other revenues                     60,332           5,655
  Equity in earnings from housing and
   land joint ventures                         2,213              -
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Total revenue                                143,988         162,956
Direct cost of sales                         103,681         127,145
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                                              40,307          35,811
Selling, general and administrative expense    9,735          14,904
Interest expense                               5,511           7,744
Minority interest                                774           1,287
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Net income before taxes                       24,287          11,876
Income tax expense                             9,707           4,750
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Net income                                  $ 14,580         $ 7,126
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Weighted average shares outstanding
  Basic                                       32,074          32,280
  Diluted                                     32,221          32,280

Earnings per share
  Basic                                       $ 0.46          $ 0.22
  Diluted                                     $ 0.45          $ 0.22
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                    Brookfield Homes Corporation
                      Condensed Balance Sheets

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                                          March 31,     December 31,
(thousands) Unaudited                          2003             2002
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Assets
Housing and land inventory                $ 634,753       $ 616,425
Investments in housing and land
 joint ventures                              86,916          80,959
Receivables and other assets                 60,920          74,534
Cash and cash equivalents                    45,919          35,903
Deferred tax asset                           26,408          36,115
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                                          $ 854,916       $ 843,936
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Liabilities and Stockholders' Equity
Project specific financings               $ 323,283       $ 288,040
Accounts payable and other liabilities      105,332         112,086
Subordinated debt due to related parties     64,000          98,300
Minority interest                            26,983          24,772
Stockholders' equity                        335,318         320,738
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                                          $ 854,916       $ 843,936
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