CALTON REPORTS PLANS TO EXTEND CREDIT FACILITY.

MANALAPAN, N.J.--(BUSINESS WIRE)--Nov. 1, 1994--Calton, Inc. (AMEX-CN), announced today that it has reached an agreement in principle with the Lenders under its existing Credit Facility to extend the term of the Facility from its current maturity date of June 1, 1995 to December 1996 on terms which the company expects will be favorable.

The company views the extension of the current Credit Facility as a more attractive, short term alternative to the proposed offering of units consisting of Senior Notes and Common Stock which was postponed due to current market conditions. The extension of the existing Credit Facility, which is subject to the negotiation and execution of a formal amendment to the Credit Agreement and the satisfaction of customary closing conditions, will provide a low cost, stabilized capital base for the company until such time as the company deems it appropriate to re-enter the financial markets to obtain longer term capital. The company believes that funds generated by its improving operating activities, income tax payment reductions derived from NOL utilization and borrowing availability under the Credit Agreement, as extended, will provide sufficient cash flow to support the company's operations and near term growth plans through the term of the extended Credit Agreement.

CONTACT: Calton Inc., Manalapan

Bradley A. Little, 908/780-1800