Toll Brothers Cancellation Trend Encouraging

Horsham, PA, Aug. 13, 2008-- Luxury homebuilder Toll Brothers said that for the third quarter ended July 31, home building revenues were approximately $796.5 million, backlog was approximately $1.75 billion and net signed contracts were approximately $469.7 million.

The preliminary totals represented declines of 34 percent, 52 percent and 35 percent respectively, in sales, and 31 percent, 48 percent and 27 percent, respectively, in units, compared to a year ago.

"Our third-quarter results for revenues, contracts and backlog reflect the continued weakness in most of our markets," said CEO Robert Toll.

"However, we believe there is growing pent-up demand from those who have postponed buying during the past three years. For example, when we run promotions and work the phones for a market, our rate of deposits improves significantly.

"We believe the consumer's confidence in the housing market is the key to its recovery. Although the rate of cancellations as a percentage of our backlog remained quite elevated compared to our historical standards, total cancellations during the third quarter of 195 were the lowest quarterly total in over two years. We believe this reduction in cancellations is a positive sign."