Centex Homes Unloads Properties for Cash

Dallas, TX, March 31, 2008--Centex Homes has sold a portfolio of developed, partially-developed and undeveloped properties to a joint venture that is led by Dallas-based RSF Partners, Inc., and includes funds under management by San Francisco-based Farallon Capital Management, L.L.C., and Greenfield Partners, L.L.C., of South Norwalk, Conn.

Centex will receive approximately $455 million, including the purchase price of approximately $161 million and an anticipated related tax refund of approximately $294 million. The book value of the properties sold was approximately $528 million.

"This transaction is consistent with our near-term goals of reducing our land supply and generating cash," says Centex CEO Timothy R. Eller.

"This land sale accelerates our move to a more asset-light operating model, sharpens our focus on strategic markets and consumer segments, reduces future land development cash obligations and monetizes a meaningful portion of our deferred tax asset."

Centex has a 5 percent interest in the joint venture and has the right to receive a greater share of distributions if certain financial targets are met.

The assets sold include approximately 8,500 lots in 27 neighborhoods across 11 states, with the majority located in California and Nevada. As a result of the transaction, Centex reduced its total supply of owned lots by approximately 10 percent to less than 80,000. The transaction conserves cash by eliminating about $265 million in future development costs related to the properties.