Dominion Homes Posts Record First Half and Quarterly Earnings.

DUBLIN, Ohio--(BUSINESS WIRE)--July 30, 1998--Dominion Homes (NASDAQ:DHOM) reported record financial results for the second quarter and for the first six months of 1998.

Net income increased 55 percent to a record $4,684,000, or 71 cents per share, for the six months ended June 30, 1998, compared with net income of $3,015,000, or 48 cents per share, for the same period a year ago. Revenues for the first half of 1998 rose 31 percent to $122,489,000 resulting from a first half record 831 home closings, vs. $93,669,000 from 646 home closings for the same period last year.

Net income for the second quarter of 1998 was a record $2,679,000, or 41 cents per share, an 11 percent increase from $2,412,000 or 38 cents per share a year ago. Revenues for the three months ended June 30, 1998, improved 20 percent to $68,031,000 from $56,672,000 in 1997. Home closings for the quarter ended June 30, 1998, increased to 461 vs. 380 home closings for the same period in the prior year.

"I am extremely pleased with the record sales and earnings for the first six months of 1998," Douglas G. Borror, president and CEO, said. "Relatively low interest rates and good weather contributed positively to the results. We continue to benefit from dedicated efforts throughout the company to improve our long-term performance."

New home contracts for the first six months of 1998 totaled 1,072, up 56 percent from a record 689 homes contracted for in the comparable period in 1997. For the three months ended June 30, 1998, new home contracts increased to 402, up from 333 in the same period last year. Backlog at June 30, 1998, was 944 homes, vs. 731 homes on the same date a year ago. The average price of homes in backlog at June 30, 1998, increased to $158,733 from $155,777 at June 30, 1997.

Dominion Homes offers three distinct series of homes -- Century, Celebrity and Tradition -- that are differentiated by size, price, standard features and available options. The company's "Best of Everything" philosophy focuses every aspect of operations on providing its customers with unsurpassed products, quality and customer service. There are currently over 40 Dominion Homes locations in the Central Ohio area.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors described in detail in the company's Form 10-K for the year ended Dec. 31, 1997. -0-

                            DOMINION HOMES
                         FINANCIAL HIGHLIGHTS
               (In thousands, except share information)
                             (Unaudited)

                         Three Months Ended        Six Months Ended
                              June 30,                 June 30,
                         1998         1997       1998           1997
                       _______________________  ______________________

Revenues               $   68,031   $   56,672  $  122,489  $   93,669
Cost of real estate
 sold                      55,030       44,826      98,588      74,260
                       __________   __________   __________  _________
Gross profit               13,001       11,846      23,901      19,409
Selling, general and
 administrative             7,071        5,996      13,423      11,077
                       __________   __________   __________  _________
Income from
 operations                 5,930        5,850      10,478       8,332
Interest expense            1,311        1,691       2,402       3,134
                       __________   __________   __________  _________
     Income before
      income taxes          4,619        4,159       8,076       5,198

Provision for income
 taxes                      1,940        1,747       3,392       2,183
                       __________   __________   __________  _________
     Net income            $2,679       $2,412      $4,684      $3,015
______________________________________________________________________
______________________________________________________________________

Earnings per share
     Basic                  $0.43        $0.39       $0.75       $0.48
     Diluted                $0.41        $0.38       $0.71       $0.48
______________________________________________________________________
______________________________________________________________________

Weighted average shares
 outstanding
     Basic              6,272,646    6,241,230   6,270,435   6,240,197
     Diluted            6,608,399    6,318,882   6,594,730   6,319,036
______________________________________________________________________
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    CONTACT:  Dominion Homes
               Jon M. Donnell or Terry E. George, 614/761-6000