Dominion Homes Reports Increased Earnings for Year 2000.

Business Editors

DUBLIN, Ohio--(BUSINESS WIRE)--Feb. 6, 2001

Dominion Homes, Inc. (Nasdaq:DHOM) today reported net income for the twelve months ending December 31, 2000 increased 13% to $9.1 million or $1.39 a diluted share from $8.0 million or $1.23 a diluted share for the previous year.

Net income for the three months ending December 31, 2000 was a fourth quarter record $3.1 million or $0.47 a diluted share compared to $2.7 million or $0.41 a diluted share for the same period the previous year.

Revenues for the year 2000 increased 18% to a record $326.4 million based on the closing of 1,798 homes compared to $277.6 million based on the closing of 1,641 homes during 1999. Revenues were 27% higher for the three months ending December 31, 2000, improving to $100.2 million based on the closing of 514 homes compared to $78.9 million based on the closing of 446 homes during the three months ending December 31, 1999.

As previously reported, the Company sold 1,785 homes during 2000, representing a sales value of $331.8 million, compared to 1,680 homes, representing a sales value of $283.4 million, during 1999, a 17% increase in sales value. For the three months ending December 31, 2000, the Company sold 404 homes, with a sales value of $77.0 million, compared to 411 homes, with a sales value of $71.3 million, sold during the same period in 1999. The Company had a sales contract backlog of 777 homes on December 31, 2000, with a sales value of $153.9 million, compared to 790 homes, with a sales value of $140.2 million, on December 31, 1999.

Dominion Homes, which is included in the Year 2000 List of the "200 Best Small Companies" published by Forbes Magazine, offers three distinct series of homes -- Century, Celebrity and Tradition, which are differentiated by size, price, standard features and available options. The Company also provides mortgage financing to its homebuyers. "The Best of Everything" is a Company philosophy that focuses every aspect of its operations on providing customers with unsurpassed products, quality, and customer service. There are currently over 40 Dominion Homes locations in Central Ohio and five in Louisville, Kentucky. Information about Dominion Homes, Inc., its homes and its services is located on the world wide web at www.dominionhomes.com.

Certain statements in this news 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, weather conditions, changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors described in the Company's Form 10-K for the year ended December 31, 1999. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

                         Dominion Homes, Inc.

                         Financial Highlights

          (In thousands, except share and per share amounts)

                            Three Months Ended     Three Months Ended
                            December 31, 2000      December 31, 1999
                            ------------------     ------------------
                               (Unaudited)            (Unaudited)

Revenues                       $  100,158             $   78,941
Cost of real estate sold           80,098                 63,504
                            ------------------    ------------------
Gross profit                       20,060                 15,437
Selling, general and
 administrative                    12,171                  8,894
                            ------------------    ------------------
Income from operations              7,889                  6,543
Interest expense                    2,771                  2,076
                            ------------------    ------------------
Income before income taxes          5,118                  4,467

Provision for income taxes          2,040                  1,723
                            ------------------    ------------------
Net income                     $    3,078             $    2,744
                            ==================    ==================

Diluted earnings per share     $     0.47             $     0.41
                            ==================    ==================
Weighted average shares
 outstanding                    6,535,430              6,483,683
                            ==================    ==================


                           Twelve Months Ended     Twelve Months Ended
                            December 31, 2000       December 31, 1999
                           -------------------     -------------------
                               (Unaudited)

Revenues                       $  326,415             $  277,577
Cost of real estate sold          261,081                224,474
                           -------------------     -------------------
Gross profit                       65,334                 53,103
Selling, general and
 administrative                    40,808                 33,601
                           -------------------     -------------------
Income from operations             24,526                 19,502
Interest expense                    9,125                  6,024
                           -------------------     -------------------
Income before income taxes         15,401                 13,478

Provision for income taxes          6,342                  5,460
                           -------------------     -------------------
Net income                     $    9,059             $    8,018
                           ===================     ===================

Diluted earnings per share     $     1.39             $     1.23
                           ===================     ===================
Weighted average shares
 outstanding                    6,496,720              6,495,796
                           ===================     ===================