Beazer Homes Cooperating With Investigation

Atlanta, GA, March 28, 2007--Beazer Homes USA, the sixth-largest U.S. homebuilder, on Wednesday said it is cooperating with federal prosecutors in a probe relating to its mortgage business.

The company said it has been in contact with the U.S. attorney's office and received a request for documents concerning the mortgage business.

Beazer made its comments one day after a representative at the FBI's office in Charlotte, North Carolina, said the agency was "conducting a potential fraud investigation" regarding Beazer.

According to reports, the FBI, Internal Revenue Service and Justice Department recently opened a probe into Beazer's lending practices.

According to BusinessWeek, the investigation followed articles published this month by the Charlotte Observer newspaper that detailed allegations of abusive lending practices and high foreclosure rates in some Beazer developments.

Beazer builds many houses for first-time home buyers. The company said it has found no evidence in internal investigations to support allegations in the Observer articles.