SOURCE: Comstock Homebuilding Companies, Inc.

September 10, 2007 16:11 ET

Comstock Homebuilding Companies, Inc. Achieves Sales and Settlement Benchmark at the Eclipse Project Resulting in Lowering of Its Project Borrowing Costs

RESTON, VA--(Marketwire - September 10, 2007) - Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company") today announced that as of September 5, 2007 it had sold and settled 316 units at its Eclipse Project, generating revenue, project to date, of $123.1 million. As a result of reaching this milestone the interest rate charged on the majority of the remaining balance of the project loan (all but approximately $1.4 million) has been lowered by approximately 6 1/4% percentage points, in accordance with previously negotiated loan terms. The total outstanding balance at the time of reallocation was $39.5 million.

Comstock also announced it completed the sale of its Blake Culpepper project for $3.68 million, with $2.5 million of the proceeds of which have been used to reduce debt. The company expects the sale of the Blake Culpepper project to have minimal impact on financial results for the third quarter of 2007.

"We continue to face difficult market conditions," said Christopher Clemente, Chairman and CEO. "However, we continue to make progress on reducing costs in every aspect of our business as we lay the groundwork for better future periods. The reduced borrowing costs on the Eclipse and the elimination of debt associated with the Blake Culpepper project are part of our strategy. We believe the unique nature, location and pricing of the Eclipse project has contributed, and will continue to contribute, to the success of that important project."

About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock Homebuilding Companies is a diversified real estate development firm with a focus on moderately priced for-sale residential products. Comstock builds and markets single-family homes, townhouses, mid-rise condominiums, high-rise condominiums, mixed-use urban communities and active adult communities. The company currently markets its products under the Comstock Homes brand in the Washington, D.C.; Raleigh, North Carolina; and Atlanta, Georgia metropolitan areas. Comstock develops mixed-use, urban communities and active-adult communities under the Comstock Communities brand. Comstock Homebuilding Companies, Inc. trades on Nasdaq under the symbol CHCI. For more information on the Company or its projects please visit

Cautionary Statement Regarding Forward-Looking Statements

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions, including statements related to Comstock's expected future financial results and anticipated growth in the Washington, D.C. housing market, are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, economic, market and competitive conditions affecting Comstock and its operations and products, risks and uncertainties relating to the market for real estate generally and in the areas where Comstock has projects, the availability and price of land suitable for development, materials prices, labor costs, interest rates, Comstock's ability to service its significant debt obligations, fluctuations in operating results, anticipated growth strategies, continuing relationships with affiliates, environmental factors, government regulations, the impact of adverse weather conditions or natural disasters and acts of war or terrorism. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the prospectus from Comstock's initial public offering, as filed with the Securities and Exchange Commission on December 15, 2004. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

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