Brookfield Homes Reports 2008 Year End Results

Market Wire, February, 2009

Brookfield Homes Corporation (NYSE: BHS) -

Investors, analysts and other interested parties can access Brookfield Homes' Supplemental Information Package on Brookfield Homes' website under the Investor Relations/Financial Reports section at www.brookfieldhomes.com . Brookfield Homes' year end investor conference call can be accessed by teleconference on February 2, 2009 at 5:00 pm (Eastern Time) at 1-800-319-4610, toll free in North America or 1-604-638-5340. The archived teleconference may be accessed by dialing 1-800-319-6413 (Pincode: 2818), toll free in North America through March 2, 2009. Alternatively, the conference call can be accessed by Webcast on Brookfield Homes' website at www.brookfieldhomes.com .

Brookfield Homes Corporation today announced financial results for the year ended December 31, 2008:

- Fourth Quarter and Year Ended 2008 Financial and Operating Highlights

                                         Three Months            Year Ended
Results of Operations                   Ended Dec. 31               Dec. 31
                                 --------------------- ---------------------
(Millions, except per share
 amounts and units)                   2008       2007       2008       2007
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Total revenue                    $     150  $     197  $     449  $     583

Housing revenue                        127        165        415        541

Housing gross margin - $                17         22         52         92

Housing gross margin - %                13%        13%        13%        17%

Total gross margin/(loss) -
 excluding impairments and
 write-offs                             (4)        31         33        102

Impairment of housing and land
 inventory and write-off of
 option deposits                        60         53        115         88

Impairment of investments in
 housing and land joint
 ventures                               19          8         38         15

Net (loss)/income                      (69)       (24)      (116)        16

(Loss)/earnings per share -
 diluted                         $   (2.58) $   (0.91) $   (4.33) $    0.58
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Net new home orders (units)             98        104        729        735

Home closings (units)                  230        272        750        839

Backlog of homes (units at end
 of period)                            134        155        134        155

Average home selling price (per
 unit)                           $ 557,000  $ 641,000  $ 562,000  $ 662,000

Lot sales (units)                      548      1,265        616      1,328
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(i) Unit information includes joint ventures

- Revenue for the year ended December 31, 2008 totaled $449 million, compared to $583 million for the year ended December 31, 2007. The company's 2008 average selling price was $562,000 compared to $662,000 for the same period last year. The decrease is primarily due to a change in product mix and higher homebuyer incentives and/or reduced selling prices.

- Net loss after taxes for the year ended December 31, 2008 was $116 million or a loss of $4.33 per share, compared to net income of $16 million or income of $0.58 per share for the year ended December 31, 2007.

- The company recorded impairments of $97 million during the year ended December 31, 2008 on 2,326 owned lots, $18 million on the write-off of option deposits on 819 lots and $38 million on investments in equity accounted joint ventures.

- Cash flow from operating activities was $66 million for the year ended December 31, 2008.

Operating Highlights and Recent Developments

- Net New Orders: Net new orders for the years ended 2008 and 2007 were 729 units and 735 units, respectively. Active communities at December 31, 2008 totaled 30, similar to the previous quarter.

- Home Closings: Brookfield Homes closed 750 homes and 616 lots for a total of 1,366 home and lot closings in 2008. This compares to 839 home and 1,328 lot closings in 2007.

- Lots Owned and Controlled: At December 31, 2008, the company's lots owned or controlled total 24,109. A summary of lots, owned or controlled under option, by region, follows:

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                                         San
                           Southland/  Diego/
                  Northern       Los   River- Washington  Corporate
                California   Angeles    side   D.C. Area  and Other   Total
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Geographic
 diversification
 of lots                30%       14%     34%         21%         1%    100%
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Lot supply
 Owned Directly      1,010     1,163   6,604       2,265        210  11,252
 Joint Ventures         98       254       1       1,416         63   1,832
 Optioned            6,182     2,043   1,500       1,300          -  11,025
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 Total -
  December
  31, 2008           7,290     3,460   8,105       4,981        273  24,109
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 Total -
  December
  31, 2007           8,203     3,228   8,356       5,302        282  25,371
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