Tarragon Corporation Granted Continued Nasdaq Listing

Tarragon Corporation (NASDAQ: TARR) today announced that a Nasdaq Listing Qualifications Hearing Panel (the "Panel") has granted Tarragon's request for continued listing on The Nasdaq Stock Market, provided that the Company hold its annual shareholders' meeting on May 1, 2008, as scheduled. Tarragon filed a definitive proxy statement for its annual meeting on March 31, 2008, which has been mailed to Tarragon shareholders.

In addition, as required by Nasdaq Marketplace Rule 4350(b)(1)(B), Tarragon notes that the Company's previously filed annual report on Form 10-K included an audit report dated March 27, 2008 from its independent registered public accounting firm with an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern. The Company incurred a net loss of $388.4 million during the year ended December 31, 2007 and as of that date total liabilities exceeded total assets by $93.6 million. Tarragon's CEO, William S. Friedman, noted, "So far in the new year, we have concluded over $127 million in property sales and have contracted to sell four other properties for a total of $156 million. These sales, together with the 18 month waiver of debt covenant compliance from the holder of our $125 million of junior subordinated debentures and the residential rental joint venture with Northland Investment Corporation announced last week, are important milestones on our difficult path back to financial strength."

About Tarragon Corporation

Tarragon Corporation is a leading developer of multifamily housing for rent and for sale. The Company's operations are concentrated in the Northeast, Florida, Texas and Tennessee. To learn more about Tarragon Corporation, visit: www.tarragoncorp.com

Forward-looking Statements

Information in this press release includes "forward-looking statements" made pursuant of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's expectations, estimates, projections and assumptions. Words such as "may," "expects," "anticipates," "intends," "estimates," and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results and the timing of certain events could differ materially from those projected or contemplated by these forward-looking statements due to a number of factors, including conditions in the homebuilding industry, the residential real estate and mortgage markets and the capital and financial markets generally, general economic conditions, interest rates and other risk factors outlined in Tarragon's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2007 and any subsequently filed Quarterly Reports on Form 10-Q. Tarragon assumes no responsibility to update forward-looking information contained in this press release.

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Contacts: Broadgate Consultants, LLC Alan H. Oshiki (212) 232-2222 Email Contact Tarragon Corporation William S. Friedman (212) 949-5000 Email Contact