Beazer Homes Affirms 3Q Results

Atlanta, GA, August 17, 2007-- Beazer Homes on Thursday reaffirmed its third-quarter results with the release of unaudited financial statements. The final report was delayed due to accounting irregularities.

Beazer said it does not believe the irregularities are will affect third-quarter results. Beazer said it will determine if any adjustments are needed to any previously filed financial statements when its internal investigation is completed.

Beazer had said that former chief accounting officer Michael Rand may have inflated reserves and other accrued liabilities in prior accounting periods.

The irregularities came to light during an independent internal investigation of Beazer's mortgage origination business and related matters.

Beazer swung to a loss in its fiscal third quarter after the homebuilder cut prices to spur sales and took major charges to write down the value of unsold inventory.

The company posted a third-quarter loss of $123 million, or $3.20 per share, compared to the prior-year period when it earned $102.6 million, or $2.37 per share.

The third quarter included pretax charges of $188.5 million to write down the value of inventory and goodwill as well as to forfeit options on land.