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

07/12/2007
                  Summary of Sales and Settlement Results
                                (unaudited)
                                     Three months ended June 30, 2007
                                -------------------------------------------
                                           Washington             Raleigh
(dollars in thousands)          CHCI - All    (1)      Atlanta      (2)
                                ---------- ---------- ---------- ----------
New Traffic                          1,665        744        492        429
Gross sales                            494        410         31         53
Cancellations                           33         22          6          5
Net new orders                         461        388         25         48
Gross new order revenue         $   99,095 $   76,179 $    9,509 $   13,407
Cancellation revenue            $   13,241 $    9,761 $    1,858 $    1,623
Net new order revenue           $   85,853 $   66,418 $    7,651 $   11,784
Settlements                            505        443         30         32
Settlement revenue              $  110,275 $   93,116 $    9,328 $    7,831
Backlog units                          241        156         20         65
Backlog revenue                 $   92,763 $   66,312 $    7,022 $   19,430
                                       Six months ended June 30, 2007
                                -------------------------------------------
                                           Washington
(dollars in thousands)          CHCI - All    (1)      Atlanta    Raleigh
                                ---------- ---------- ---------- ----------
New Traffic                          3,257      1,448      1,007        802
Gross sales                            639        489         65         85
Cancellations                          107         80         15         12
Net new orders                         532        409         50         73
Gross new order revenue         $  142,909 $  101,285 $   20,260 $   21,364
Cancellation revenue            $   41,014 $   32,837 $    4,427 $    3,750
Net new order revenue           $  101,895 $   68,448 $   15,833 $   17,614
Settlements                            636        538         44         54
Settlement revenue              $  153,300 $  126,856 $   13,571 $   12,869
Backlog units                          241        156         20         65
Backlog revenue                 $   92,763 $   66,312 $    7,022 $   19,430
   (1)  Includes the sale of the 316 units at the Bellemeade condominium
        project for approximately $47.5 million on June 28, 2007.
   (2)  Does not include approximately $3.6 million sale of developed lots
        or the approximately $3.8 million sale of a partnership interest in
        North Shore condominiums.

The Company provided the following additional information specifically regarding its Eclipse at Potomac Yard project in Arlington, Virginia:

                                    Three months ended  Project to Date as
(dollars in thousands)                 June 30, 2007     of June 30, 2007
                                     ------------------  ------------------
Traffic                                             204                1709
Gross sales                                          25                 481
Cancellations                                        14                  93
Net new orders                                       11                 388
Gross new order revenue              $            9,063  $          196,941
Cancellation revenue                 $            7,332  $           39,826
Net new order revenue                $            1,731  $          157,116
Settlements                                          72                 264
Settlement revenue                   $           29,562  $           99,510
Backlog units                                       124                 124
Backlog revenue                      $           57,605  $           57,605

With respect to cancellations that occurred during the three months ended June 30, 2007 the Company reported the following breakdown of its cancellations:

                                                              Avg. Contract
2Q 2007 Cancellations                           Cancellation    Aging at
(dollars in thousands)                Units        Revenue    Cancellation
                                  ------------- ------------- -------------
Cancellations - Raleigh                 5       $       1,623           128
Cancellations - Atlanta                 6       $       1,858           123
Cancellations - Washington Metro       22       $       9,761           516
                                  ------------- ------------- -------------
Total / Weighted Average               33       $      13,241           386
                                  ============= ============= =============

"We are pleased with the progress made during the second quarter on several fronts," said Christopher Clemente, Chairman and CEO. "We substantially completed construction of the second high rise building of the Eclipse project and settled the first 50 units in that building, we closed the sale of the 316 unit Bellemeade condo project, sold our interest in the North Shore joint venture, and reduced our level of debt and the interest cost burden associated with land and unit inventories. Additionally, our cost reduction initiatives are beginning to lower our production and other costs. We remain focused on enhancing our balance sheet and positioning Comstock for positive results in future periods. Because of these accomplishments and the continuing momentum of deliveries at the Eclipse, we believe we are moving in the right direction."

The Company will discuss the results of the second quarter in detail during its earnings conference call in August.

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 it 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.

Contact:
Bryan Murray
Email Contact
703.230.1450

SOURCE: Comstock Homebuilding Companies, Inc.

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