Colony Homes Reports Solid Mid-Year Results.

Business Editors

ATLANTA--(BUSINESS WIRE)--July 31, 2002

Atlanta-based Colony Homes, one of the country's fastest growing home builders, reports net sales of 965 homes and 830 home closings for the six-month period ending June 30, 2002.

Officials of the company say Colony's performance indicates they are on pace to have a solid year, with approximately 2000 projected closings, in spite of industry concerns about the economy. As of the last week in July, the company had 800 homes in its confirmed sold backlog.

"We are pleased that our customers continue to respond favorably to Colony's emphasis on providing quality homes of enduring value, even as consumers generally take a more cautious approach to spending," says Colony Chief Executive Officer Ron Peiffer.

"This performance also reflects the commitment of our associates and trade partners to work cooperatively and stay true to the things that set Colony apart -- being uncompromisingly innovative and customer-focused," Peiffer continues.

Colony Homes specializes in building entry-level, affordable homes. Close to 70 percent of Colony's customers are first-time homebuyers.

Colony is pursuing an aggressive agenda for 2002. It seeks to acquire sizable tracts of land for homebuilding and to be a dominant force in providing entry-level homes in markets the company targets. Colony earlier introduced its Power to Own Club, a free, no-obligation information and consulting service which helps prospective homeowners better understand and negotiate the home buying process. The company recently opened its first homebuyer Selection Center in Atlanta.

Colony currently builds in metro Atlanta and in Raleigh and Charlotte, NC. Colony is the largest privately owned homebuilder in the southeast and one of the top 100 homebuilders in the U.S.