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Comstock Homebuilding Companies, Inc. Reports 98% Growth in New Order Revenue For Second Quarter 2005

07/07/2005

"These results are leading indicators that suggest to us we are solidly on track to achieve our new order revenue goals for the full year 2005," said Chairman and CEO Christopher Clemente. "We believe that our inventory and business model are well aligned with the demand trends in our core market."

The Company indicated that the quarter reflected growth in each category reported as follows:

                                       For the three months ended June 30,
    (numbers in 000s except units)    2004           2005        % Change
    New Orders                           71             144        102.8%
    New Order Revenue                26,063          51,585         97.9%
    Settlements                          88             123         39.8%
    Backlog                          60,433         268,624        344.5%

                                       For the six months ended June 30,
    (numbers in 000s except units)    2004            2005        % Change
    New Orders                          203             400         97.0%
    New Order Revenue                73,160         159,841        118.5%
    Settlements                         134             201         50.0%
    Backlog                          60,433         268,624        344.5%

    Average new order price           360.4           399.6         10.9%


In addition, the Company reported the following project-specific information:

    --  In April 2005 the Company opened for sales at its Penderbrook
        condominium conversion project in Fairfax, Virginia.  During the
        first 30 days the Company sold exclusively to existing tenants.
        After that the Company opened for sales to the general public.
        During the second quarter the Company reported 86 new orders valued
        at approximately $21.5 million.  As of June 30, 2005 the Company had
        settled 74 units;
    --  100% of released units have been sold at the Company's Eclipse at
        Potomac Yard project.  At June 30, 2005, backlog at the Company's
        Eclipse on Potomac Yard project was approximately $146.2 million.
        Remaining units are scheduled to be released later this year.
        Deliveries are currently scheduled to begin in the second half of
        2006;
    --  Renovations at the Company's Villas at Countryside condominiums are
        on schedule and sales will open in July to the existing tenants and
        in August to the general public.  Deliveries are expected to begin in
        September of 2005.

"Our success with both the opening of Penderbrook and the closing of our follow-on offering made this a very exciting quarter at Comstock," continued Christopher Clemente. "We believe that the overwhelming success of our follow- on offering supports our business model of demographic diversification through an extensive product mix including both high-rise and mid-rise condominiums as well as in-fill redevelopment projects and condominium conversions. Our average new order price for the first half of the year was $399,600 which is consistent with our goal of providing affordable upscale product to the first time and early move-up buyers in our markets. I believe that these preliminary results for the first half of the year establish a significant foundation for the growth we are projecting for 2005 and beyond."

About Comstock Homebuilding Companies, Inc. Comstock is a production homebuilder that develops, builds, and markets single-family homes, townhouses, and condominiums. 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.

The company will report full operating results for the six months ended June 30, 2005 after close of market on August 1, 2005.

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

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