Dominion Homes Reports Record 66% Earnings Increase for 2001.

Business Editors

DUBLIN, Ohio--(BUSINESS WIRE)--Jan. 29, 2002

Dominion Homes, Inc. (Nasdaq:DHOM) today reported net income for the twelve months ending December 31, 2001 increased 66% to $15.1 million or $2.30 a diluted share from $9.1 million or $1.39 a diluted share for the previous year.

Net income for the three months ending December 31, 2001 was a fourth quarter record $5.2 million or $0.79 a diluted share compared to $3.1 million or $0.47 a diluted share for the same period the previous year.

Revenues for the year 2001 increased 21% to a record $395.7 million based on the closing of 2,054 homes compared to $326.4 million based on the closing of 1,798 homes during 2000. Revenues were 16% higher for the three months ending December 31, 2001, improving to $116.6 million based on the closing of 610 homes compared to $100.2 million based on the closing of 514 homes during the three months ending December 31, 2000.

As previously reported, the Company sold a record 2,309 homes during 2001, representing a sales value of $431.3 million, compared to 1,785 homes, representing a sales value of $331.8 million, sold during 2000, a 30% increase in sales value. For the three months ending December 31, 2001, the Company sold 530 homes, with a sales value of $98.7 million, compared to 404 homes, with a sales value of $77.0 million, sold during the same period in 2000. The Company had a record sales contract backlog of 1,032 homes on December 31, 2001, with a sales value of $201.2 million, compared to 777 homes, with a sales value of $153.9 million, on December 31, 2000.

Dominion Homes, which is included in the Year 2001 List of the "200 Best Small Companies" published by Forbes Magazine, offers three distinct series of homes which are differentiated by size, price, standard features and available options. The Company also provides mortgage financing services to its homebuyers. The Company's "Best of Everything" philosophy focuses on providing customers with unsurpassed products, quality, and customer service. There are currently over 40 Dominion Homes locations in Central Ohio and six in Louisville, Kentucky. Additional information about the Company and its homes 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, 2000. 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     Three Months
                                          Ended            Ended
                                       December 31,     December 31,
                                           2001             2000
                                        ----------       ----------
                                        (Unaudited)      (Unaudited)

Revenues                                $  116,637       $  100,158
Cost of real estate sold                    90,505           80,098
                                        ----------       ----------
Gross profit                                26,132           20,060
Selling, general and administrative         14,012           12,171
                                        ----------       ----------
Income from operations                      12,120            7,889
Interest expense                             3,401            2,771
                                        ----------       ----------
Income before income taxes                   8,719            5,118

Provision for income taxes                   3,511            2,040
                                        ----------       ----------
Net income                              $    5,208       $    3,078
                                        ==========       ==========

Diluted earnings per share              $     0.79       $     0.47
                                        ==========       ==========
Weighted average shares outstanding      6,535,430        6,598,334
                                        ==========       ==========

                                      Twelve Months    Twelve Months
                                          Ended            Ended
                                       December 31,     December 31,
                                           2001             2000
                                        ----------       ----------
                                        (Unaudited)

Revenues                                $  395,701       $  326,415
Cost of real estate sold                   305,430          261,081
                                        ----------       ----------
Gross profit                                90,271           65,334
Selling, general and administrative         52,491           40,808
                                        ----------       ----------
Income from operations                      37,780           24,526
Interest expense                            11,667            9,125
                                        ----------       ----------
Income before income taxes                  26,113           15,401

Provision for income taxes                  10,987            6,342
                                        ----------       ----------
Net income                              $   15,126       $    9,059
                                        ==========       ==========

Diluted earnings per share              $     2.30       $     1.39
                                        ==========       ==========
Weighted average shares outstanding      6,575,026        6,496,720
                                        ==========       ==========