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Comstock Homebuilding Companies, Inc. Reports 173% Growth in Settlements for Third Quarter 2005

10/07/2005

RESTON, Va., Oct. 7 /PRNewswire-FirstCall/ -- Comstock Homebuilding Companies, Inc. (Nasdaq: CHCI), today announced preliminary new order and settlement results for both the three months and nine months ended September 30, 2005. On a year-to-date basis as of September 30, 2005 the Company posted gains in new orders and settlements as follows:

                            For the nine months ended September 30,

                                                        adjusted to exclude
                                                        Eclipse and Raleigh
                         2004      2005  % Change    2004      2005   % Change
                      (number in 000s except units)

    Total new orders       524       588   12.2%       306       463    51.3%
    Total new order
     revenue           184,874   221,131   19.6%   108,229   166,243    53.6%
    Average new order
     revenue             352.8     376.1    6.6%     353.7     359.1     1.5%
    Net new orders         490       523    6.7%       272       407    49.6%
    Net new order
     revenue           170,644   197,166   15.5%    93,999   135,152    43.8%
    Average net new
     order price         348.3     377.0    8.3%     345.6     332.1    -3.9%
    Settlements            208       403   93.8%       208       377    81.3%
    Backlog            135,442   231,833   71.2%    58,797    80,100    36.2%
    Backlog units          377       567   50.4%       159       187    17.6%
    Average backlog
     revenue             359.3     408.9   13.8%     369.8     428.3    15.8%



                              For the three months ended September 30,

                                                        adjusted to exclude
                                                        Eclipse and Raleigh
                         2004      2005  % Change    2004      2005   % Change
                             (number in 000s             (number in 000s
                             except unit data)           except unit data)

    Total new orders       298       146  -51.0%        80       139    73.8%
    Total new order
     revenue           102,299    45,093  -55.9%    25,654    42,015    63.8%
    Average new order
     revenue             343.3     308.9  -10.0%     320.7     302.3    -5.7%
    Net new orders         287       117  -59.2%        69       113    63.8%
    Net new order
     revenue            97,484    34,398  -64.7%    20,839    32,811    57.4%
    Average net new
     order price         339.7     294.0  -13.4%     302.0     290.4    -3.9%
    Settlements             74       202  173.0%        74       194   162.2%

"The strong results Comstock experienced during the third quarter is in keeping with our expectations for continued growth in 2005 and beyond," said Christopher Clemente, Chairman and CEO. "Because of the tremendous demand experienced upon opening our Eclipse at Potomac Yard project where we reported 218 new orders in the third quarter of 2004 we are displaying adjusted results to provide a clear picture of the growth we have experienced in our homebuilding division and the greater Washington DC area in particular. We believe that both the continuing pace of job growth in our core market of the greater Washington, DC metropolitan area and the current shortage of housing relative to the projected population growth provide a solid foundation for the housing market well into the future."

In addition, the Company reported the following project-specific information for the three months ended September 30, 2005:



      * Penderbrook Square -- the Company reported 69 net new orders valued at
        approximately $17.5 million and 69 settlements.  Backlog revenue at
        the end of the quarter was approximately $2.7 million on 12 units;

      * Villas at Countryside -- the Company reported 36 net new orders valued
        at approximately $10.4 million and 23 settlements.  Backlog revenue at
        the end of the quarter was approximately $3.7 million on 13 units;

      * Hamlets of Blue Ridge -- during the three months ended September 30,
        2005 the Company sold and delivered 19 lots to an unrelated third
        party homebuilder for $6.55 million.  Backlog revenue on the remaining
        lots at the Hamlets at the end of the third quarter was approximately
        $15.3 million.  The sold lots were not included in previously reported
        backlog at June 30, 2005.

The company will report full operating results for the nine months ended September 30, 2005 in early November. When available, the details of the release date and corresponding investor conference call will be available on the Company's website under the Investor Relations section.

About Comstock Homebuilding Companies, Inc. Comstock is a production homebuilder that develops, builds, and markets single-family homes, townhouses, mid-rise condominiums, high-rise condominiums, mixed-use developments and condominium conversions. The Company currently operates in the Washington, D.C. and Raleigh, North Carolina markets where it targets a diverse range of buyers, including first-time, early move-up, secondary move- up, empty nester move-down and active adult home buyers. For more information on Comstock, please visit http://www.comstockhomebuilding.com.

This press release includes "forward-looking statements" within the meaning of the federal securities laws, which involve uncertainties and risks. These include statements regarding events or developments that the Company expects or anticipates will occur in the future, such as statements about the Company's strategies to improve operating performance. Please refer to the Company's prospectus and its other filings with the Securities and Exchange Commission for a complete discussion of these and other important factors that could cause results to differ materially from those projected by these forward-looking statements.

SOURCE Comstock Homebuilding Companies, Inc.

CONTACT: Media: Carrie Blewitt of Qorvis Communications,
+1-202-448-3129, [email protected], for Comstock Homebuilding Companies,
Inc.; or Bruce Labovitz, Chief Financial Officer of Comstock Homebuilding
Companies, Inc., +1-703-883-1700 ext. 131, [email protected]

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