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Comstock Homebuilding Companies, Inc. Reports Results for Three and Nine Months Ended September 30, 2008

11/17/2008










                          Three Months Ended September 30, 2008
 --------------------------------------------------------------------
                      Washington     North
 (dollars in 000s)      Metro       Carolina     Georgia       Total
 --------------------------------------------------------------------
 Gross new orders           19           19            4           42
 Cancellations               5            4            3           12
 Net new orders             14           15            1           30
 Gross new order
  revenue              $ 6,129      $ 2,767      $ 1,060      $ 9,956
 Cancellation
  revenue              $ 1,561      $   794      $ 1,163      $ 3,518
 Net new order
  revenue              $ 4,568      $ 1,973      $  (103)     $ 6,438
 Backlog units               5           16            4           25
 Backlog revenue       $ 1,273      $ 4,449      $ 1,315      $ 7,037
 Avg. backlog price    $   255      $   278      $   329      $   281


                             Nine Months Ended September 30, 2008
 --------------------------------------------------------------------
                      Washington     North
 (dollars in 000s)      Metro       Carolina     Georgia       Total
 --------------------------------------------------------------------
 Gross new orders           61           49           17          127
 Cancellations              17           15           10           42
 Net new orders             44           34            7           85
 Gross new order
  revenue              $20,194      $10,483      $ 5,260      $35,937
 Cancellation
  revenue              $ 4,701      $ 4,419      $ 3,093      $12,213
 Net new order
  revenue              $15,493      $ 6,064      $ 2,167      $23,724
 Backlog units               5           16            4           25
 Backlog revenue       $ 1,273      $ 4,449      $ 1,315      $ 7,037
 Avg. backlog price    $   255      $   278      $   329      $   281




  *  Total cash on hand at September 30, 2008 was $10.1 million,
     with $6.3 million of unrestricted cash.
  *  Gross profit on all revenue was $2.1 million, representing a
     gross margin of 16.1%, compared to $6.6 million, or 12.7%, for
     the three months ended September 30, 2007.
  *  Gross profit from homebuilding was $1.3 million, representing
     a gross margin of 10.6%, compared to gross profit from
     homebuilding of $6.0 million, or 12.6%, for the three months
     ended September 30, 2007.
  *  SG&A was $4.6 million, a $3.3 million, or 41.9% decrease as
     compared to SG&A of $7.9 million for the three months ended
     September 30, 2007.
  *  Operating loss was ($4.7) million, or (35.7%), compared to
     ($70.3) million, or (135.2%), for the three months ended
     September 30, 2007.
  *  The Company reported a $1.2 million gain on troubled debt
     restructuring related to foreclosures by BB&T. The gains resulted
     from the reversal of prior period impairments and relief from
     accrued interest and project costs.
  *  The Company reported other income of $1.3 million including a
     $0.9 million gain related to the settlement of claims with the
     principal shareholders of Parker-Chandler Homes and a $0.4 million
     gain relating to defaulted unit purchases at the Company's Eclipse
     project.




  *  Gross profit on all revenue was $6.3 million, representing a
     gross margin of 15.1%, compared to $20.6 million, or 9.7%,
     for the nine months ended September 30, 2007.
  *  Gross profit from homebuilding was $4.5 million, representing
     a gross margin of 11.3%, compared to gross profit from
     homebuilding of $19.6 million, or 9.8%, for the nine months
     ended September 30, 2007.
  *  SG&A was $12.7 million, an $11.5 million, or 47.5%, decrease
     compared to SG&A of $24.2 million for the nine months ended
     September 30, 2007.
  *  Operating loss was ($24.7) million, or (59.5%), compared to
     ($81.1) million, or (38.1%), for the nine months ended
     September 30, 2007.
  *  Impairments and write-offs were $14.6 million, compared to
     $77.4 million for the nine months ended September 30, 2007.












 Comstock Homebuilding Companies, Inc.
 Income Statement
 (dollars in 000s)        Three Months Ended,     Nine Months Ended,
                             September 30,           September 30,
                         --------------------------------------------
                           2008        2007        2008       2007
                         --------------------------------------------
 Revenues
   Revenue -
    homebuilding         $ 12,270    $ 47,769    $ 39,645    $201,106
   Revenue - other            803       4,217       1,807      11,902
                         --------------------------------------------
 Total revenue             13,073      51,986      41,452     213,008
 Expenses
   Cost of sales -
    homebuilding           10,968      41,748      35,168     181,491
   Cost of sales - other        1       3,643          28      10,947
   Impairments and
    write-offs                  2      69,017      14,580      77,400
   Selling, general and
    administrative          4,566       7,860      12,725      24,235
   Interest, real
    estate taxes and
    indirect costs
    related to
    inactive projects       2,199          --       3,615          --
                         --------------------------------------------
 Operating loss            (4,663)    (70,282)    (24,664)    (81,065)
 Gain on troubled debt
  restructuring            (1,194)         --      (9,519)         --
 Other income, net         (1,268)       (715)     (2,865)     (1,361)
                         --------------------------------------------
 Loss before minority
  interest                 (2,201)    (69,567)    (12,279)    (79,704)
 Minority interest             (4)         (2)         (7)         (7)
                         --------------------------------------------
 Total pre tax loss        (2,197)    (69,565)    (12,272)    (79,697)
 Income taxes expense
  (benefit)                     5     (27,097)          5     (30,893)
                         --------------------------------------------
 Net loss                $ (2,202)   $(42,468)   $(12,277)   $(48,804)
                         ============================================

 Basic loss per share    $  (0.13)   $  (2.63)   $  (0.70)   $  (3.04)
 Basic weighted average
   shares outstanding      17,475      16,151      17,431      16,046
                         ============================================

 Diluted loss per share  $  (0.13)   $  (2.63)   $  (0.70)   $  (3.04)
 Diluted weighted
  average shares
  outstanding              17,475      16,151      17,431      16,046
                         ============================================


 Comstock Homebuilding Companies, Inc.
 Balance Sheet
 (dollars in 000s)                              September    December
                                                 30, 2008    31, 2007
 ASSETS
   Cash and cash equivalent                      $  6,304    $  6,822
   Restricted cash                                  3,836       4,985
   Receivables                                        210         370
   Due from related parties                            92          92
   Real estate held for development and sale      147,019     203,860
   Inventory not owned - variable interest
    entities                                       19,250      19,250
   Property, plant and equipment, net               1,000       1,539
   Other assets                                     2,692      22,058
                                                 --------------------
     TOTAL ASSETS                                $180,403    $258,976
                                                 ====================

 LIABILITIES AND SHAREHOLDERS' EQUITY
   Accounts payable and accrued liabilities       $ 8,544    $ 21,962
   Obligations related to inventory not owned      19,050      19,050
   Notes payable                                  104,392     141,214
   Senior unsecured debt                           12,962      30,000
                                                 --------------------
     TOTAL LIABILITIES                            144,948     212,226
                                                 --------------------
   Commitments and contingencies
   Minority interest                                  224         231
                                                 --------------------
 SHAREHOLDERS' EQUITY
   Class A common stock, $0.01 par value,
    77,266,500 shares authorized, 15,211,455
    and 15,120,955 issued and outstanding,
    respectively                                      152         151
   Class B common stock, $0.01 par value,
    2,733,500 shares authorized, 2,733,500
    issued and outstanding                             27          27
   Additional paid-in capital                     156,987     155,998
   Treasury stock, at cost (391,400 Class A
    common stock)                                  (2,439)     (2,439)
   Accumulated deficit                           (119,496)   (107,219)
                                                 --------------------
     TOTAL SHAREHOLDERS' EQUITY                    35,231      46,519
                                                 --------------------
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $180,403    $258,976
                                                 ====================





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