Orleans Homebuilders Posts $34.2 Million Loss During Fourth Quarter

BENSALEM, PA -- Orleans Homebuilders, Inc. this week reported a $34.2 Million loss during its fourth quarter, substationally higher than the $11 million loss it reported for the same period a year earlier. The company said that new orders decreased 28%, to 286 homes during the quarter. The average selling price for homes was $490,000 compared to $522,000 a year earlier.

The Company experienced a cancellation rate of approximately 25% for the three months ended June 30, 2008, which is an increase from 20% for the three months ended June 30, 2007. This increase was driven by increases in all of the Company's regions with the exception of the Florida region.

For its fiscal year, Orleans posted a $121.7 million loss.

Jeffrey P. Orleans, Chairman of the Board and Chief Executive Officer stated, "The challenges facing the housing industry remain significant. The recent instability in the financial markets has further eroded consumer confidence and the housing market. Despite these near term challenges, we continue to focus on successfully operating though these turbulent times. As we have successfully demonstrated during this past year, we remain diligent on our stated objectives to reduce our debt while maintaining our liquidity, improving our balance sheet and reducing our cost structure. The recent extension and modification of our credit facility through December 2009 by our supportive bank group demonstrates confidence in our abilities, and the agreement provides us necessary liquidity and covenant flexibility."

Orleans operates in Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina.