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Comstock Homebuilding IPO Underwriters Exercise Over Allotment Purchase Option for $8.8 Million

01/03/2005

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective on December 13, 2004. Copies of the final prospectus related to the offering may be obtained, when available, from BB&T Capital Markets, Prospectus Department, 909 East Main Street, Richmond, VA. 23219, telephone number 1.800.552.7757.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, and there shall not be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Comstock Homebuilding Companies

Comstock is a production home builder 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. Since its founding in 1985, Comstock has built and delivered over 2,500 homes valued at over $500 million. For more information on Comstock, please visit http://www.comstockhomebuilding.com.

This press release contains forward-looking statements that reflect management's current views of future events and operations. These forward- looking statements are based on assumptions, external factors and other risks that are detailed in the prospectus relating to this offering. Actual results could differ materially from these forward-looking statements.

SOURCE Comstock Homebuilding Companies, Inc.

CONTACT: Al Black of Qorvis Communications, 1-703-744-7833, or [email protected]
for Comstock Homebuilding Companies, Inc.

Web site: http://www.comstockhomebuilding.com

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