SOURCE: Comstock Homebuilding Companies, Inc.

April 23, 2007 07:00 ET

Comstock Homebuilding Companies, Inc. Reports Preliminary Sales and Settlement Results for First Quarter 2007

RESTON, VA -- (MARKET WIRE) -- April 23, 2007 -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock or the "Company") today announced preliminary sales and settlement results for the three months ended March 31, 2007 as follows:

                                Summary of Sales and Settlement Results

                                  Three months ended March 31, 2007
                            -----------------------------------------------
                            CHCI Totals Washington    Atlanta     Raleigh
                            ----------- ----------- ----------- -----------
Traffic                           1,860         704         515         373
Gross sales (1)                     145          79          34          32
Cancellations (1)                    74          58           9           7
Net new orders                       71          21          25          25

Gross new order revenue      43,844,872  25,137,043  10,751,446   7,956,383
Cancellation revenue         27,772,668  23,076,414   2,569,624   2,126,630
Net new order revenue        16,072,204   2,060,629   8,181,822   5,829,753

Settlements                         131          95          14          22
Settlement revenue (2)       43,024,815  33,740,461   4,245,810   5,038,544

Backlog units                       285         211          25          49
Backlog revenue             117,052,186  92,957,994   8,656,012  15,438,180
The Company provided the following additional information related to its Eclipse project at Potomac Yard in Arlington, Virginia:
                                              Three months ended 03/31/07
                                              ----------------------------
                                                               CHCI net of
                                                  Eclipse        Eclipse
                                                  Project     (Traditional
                                                (High-Rise)       Homes)
Gross sales (1)                                          21             124
Cancellations (1)                                        36              38
Net new orders                                          (15)             86

Gross new order revenue                           8,931,654      34,913,218
Cancellation revenue                             16,321,548      11,451,120
Net new order revenue                            (7,389,894)     23,462,098

Settlements                                              58              73
Settlement revenue (2)                           23,800,193      19,224,622

Backlog units                                           185             100
Backlog revenue                                  85,361,028      31,691,158

(1) includes 8 cancellations and corresponding new orders with existing
    customers changing unit selections.

(2) unaudited results
With respect to cancellations that occurred during the three months ended March 31, 2007, the Company reported the following breakdown of the aging of its cancellations:
                                                             Avg. Contract
                                                               Aging at
                                               Cancellation  Cancellation
1Q 2007 Cancellations                Units       Revenue         (days)
                                  ------------ ------------ ---------------
Cancellations - Raleigh                      7 $  2,126,630          178.29
Cancellations - Atlanta                      9 $  2,569,624           61.22
Cancellations - Other DC Metro (3)          22 $  6,754,866          138.41
Cancellations - Eclipse                     36 $ 16,321,548          772.14
                                  ------------ ------------ ---------------
Total / Weighted Average                    74 $ 27,772,668          441.09
                                  ============ ============ ===============

(3)  includes 12 cancellations initiated by the company for approximately
     $3.8 million of cancellation revenue from Barrington Park Condominiums
     where the Company decided to temporarily manage the project as a
     rental community.
"While market conditions remain difficult, we continue to be focused on enhancing our balance sheet," said Christopher Clemente, Chairman and CEO. "We believe steps we are taking now to protect liquidity, reduce costs, and lower our exposure to land and unit inventories will position Comstock to benefit from improving conditions in the future."

The Company announced that it plans to hold a conference call for investors on Friday, May 11th, 2007 at 1:00 pm EDT to review its 1Q 2007 results. This investor call will be available via live webcast on the Comstock Homebuilding Companies' website at http://www.comstockhomebuilding.com in the "Investor Relations" section. To participate by telephone, the dial-in number is 888-603-6873 and the access code is 8696237. Investors are advised to join at least five minutes prior to the call to register.

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 http://www.comstockhomebuilding.com.

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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