Vianale & Vianale LLP Files Shareholder Class Action Lawsuit Against the Officers of HomeBanc Corp.

Market Wire, December, 2007

The law firm of Vianale & Vianale LLP announces that it filed a class action lawsuit on December 17, 2007 on behalf of purchasers of the securities of HomeBanc Corp. ("HomeBanc") (PINKSHEETS: HMBN) between September 26, 2005 and August 3, 2007 (the "Class Period"). A copy of the complaint can be obtained by calling our offices or viewed on Vianale & Vianale's website at: www.vianalelaw.com . The action (Case No. 07-61838) is pending in U.S. District Court in the Southern District of Florida.

The complaint alleges that the officers of HomeBanc -- Kevin D. Race and Patrick S. Flood -- violated the Securities Exchange Act of 1934. HomeBanc originated home mortgage loans through its retail stores in Florida, Georgia, and North and South Carolina. Beginning on September 26, 2005, HomeBanc sought to register 2 million shares of 10% Series A Cumulative Redeemable Preferred Stock for sale to the public. On February 2, 2006, HomeBanc sold these preferred shares through its underwriters, and raised approximately $50 million. But HomeBanc failed to disclose in its registration statement that it was then planning to sell its adjustable rate loans for cash, and was buying lower-quality, higher-risk, residential mortgage-backed securities.

Throughout the Class Period, HomeBanc misrepresented its risk of loss due to interest rate fluctuations. HomeBanc was earning less in interest on its assets than the amount it had to pay out in interest on its debts. As a result, HomeBanc had less cash available to meet its business and operating needs.

HomeBanc, however, continued to tell the public throughout the Class Period that it had sufficient current cash balances and cash flows from its operations to support its liquidity needs for at least a year or more. Even as late as May 9, 2007, HomeBanc told the public that it had enough cash "to support our liquidity requirements for the foreseeable future." Just three months later, HomeBanc's common and Series A Preferred shares were delisted from the New York Stock Exchange. On August 7, 2007, HomeBanc filed for bankruptcy in Delaware where it is incorporated. (Because of its bankruptcy, we have not named HomeBanc as a defendant in this class action lawsuit.)

If you bought the securities of HomeBanc, including its common stock and 10% Series A Cumulative Redeemable Preferred Stock, between September 26, 2005 and August 3, 2007, no later than January 29, 2008, you may move the court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The court must determine whether the class member's claim is typical of other members' claims, and whether the class member will adequately represent the class. Your ability to recover is not, however, affected by the decision whether or not to serve as a lead plaintiff. Vianale & Vianale LLP is active in major litigations pending in federal and state courts. More about the firm is available on its website.

If you wish to discuss this action with us, or have any questions concerning our lawsuit, this notice or your rights and interests with regard to this case, please contact:

Kenneth J. Vianale, Esq. Julie Prag Vianale, Esq. Vianale & Vianale LLP 2499 Glades Road, Suite 112 Boca Raton, FL 33431 888-657-9960 (Toll Free) 561-392-4750 Email: Email Contact Email Contact