Comstock Homebuilding Companies, Inc. Reports Results for Three and Nine Months Ended September 30, 2008

• Press Release
• Source: Comstock Homebuilding Companies, Inc.
• On 11:04 am EST, Monday November 17, 2008

RESTON, Va., Nov. 17, 2008 (GLOBE NEWSWIRE) -- On Friday, November 14, 2008 Comstock Homebuilding Companies, Inc. (NasdaqGM:CHCI - News) (``Comstock'' or the ``Company'') released its unaudited results for the three and nine months ended September 30, 2008.

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Symbol	Price	Change
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{"s" : "chci","k" : "c10,l10,p20,t10","o" : "","j" : ""}

For the three months ended September 30, 2008, the Company reported a net loss of ($2.2) million or ($0.13) per share basic and diluted on total revenue of $13.1 million, compared to a net loss of ($42.5) million or ($2.63) per share basic and diluted on total revenue of $52.0 million, for the three months ended September 30, 2007. For the nine months ended September 30, 2008, the Company reported a net loss of ($12.3) million or ($0.70) per share basic and diluted on total revenue of $41.5 million, compared to a net loss of ($48.8) million or ($3.04) per share basic and diluted on total revenue of $213.0 million, for the nine months ended September 30, 2007.

During the three months ended September 30, 2008 the Company continued to execute on its long-standing debt reduction initiative. Debt outstanding at September 30, 2008 was $117.4 million; a $35.6 million reduction from June 30, 2008, a $53.8 million reduction from December 31, 2007, and an $84.2 million reduction from September 30, 2007. At September 30, 2008 the actual principal amount outstanding under the Company's senior unsecured notes was $9.0 million, as opposed to $13.0 million reflected on the Company's balance sheet, as a result of the Company recording $4.0 million of future interest expense as additional debt pursuant to SFAS 15 (Accounting by Debtors and Creditors of Troubled Debt Restructurings) in connection with the restructuring of its $30.0 million senior unsecured notes in March 2008. The company's adjusted net debt-to-cap ratio at September 30, 2008 (adjusted for the $4.0 million of accrued interest) was 70.2%.

Shareholder equity at September 30, 2008 was $35.2 million, or $1.97 per share, based on approximately 17.9 million shares outstanding. On a pro-forma basis, adjusted for the $4.0 million of future interest accrued to its senior unsecured debt, the Company's book value per share was $2.19 on shareholder equity of $39.2 million.

``The market continues to be challenging with no immediate visibility to recovery,'' said Christopher Clemente, Chairman and CEO. ``However, real estate is a cyclical business and every down cycle is ultimately followed by a recovery. Our primary focus is completing the restructure of our loans so that we can position Comstock to survive this downturn and prosper in the coming recovery. We are hopeful that the attention being focused on the economy by the federal government will result in positive change that will stabilize house prices and ensure that affordable mortgage loans are readily available for all consumers.''

The Company reported the following orders, cancellations and backlog by segment for the three and nine months ended September 30, 2008:

                          Three Months Ended September 30, 2008
 --------------------------------------------------------------------
                      Washington     North
 (dollars in 000s)      Metro       Carolina     Georgia       Total
 --------------------------------------------------------------------
 Gross new orders           19           19            4           42
 Cancellations               5            4            3           12
 Net new orders             14           15            1           30
 Gross new order
  revenue              $ 6,129      $ 2,767      $ 1,060      $ 9,956
 Cancellation
  revenue              $ 1,561      $   794      $ 1,163      $ 3,518
 Net new order
  revenue              $ 4,568      $ 1,973      $  (103)     $ 6,438
 Backlog units               5           16            4           25
 Backlog revenue       $ 1,273      $ 4,449      $ 1,315      $ 7,037
 Avg. backlog price    $   255      $   278      $   329      $   281


                             Nine Months Ended September 30, 2008
 --------------------------------------------------------------------
                      Washington     North
 (dollars in 000s)      Metro       Carolina     Georgia       Total
 --------------------------------------------------------------------
 Gross new orders           61           49           17          127
 Cancellations              17           15           10           42
 Net new orders             44           34            7           85
 Gross new order
  revenue              $20,194      $10,483      $ 5,260      $35,937
 Cancellation
  revenue              $ 4,701      $ 4,419      $ 3,093      $12,213
 Net new order
  revenue              $15,493      $ 6,064      $ 2,167      $23,724
 Backlog units               5           16            4           25
 Backlog revenue       $ 1,273      $ 4,449      $ 1,315      $ 7,037
 Avg. backlog price    $   255      $   278      $   329      $   281

Additional results of the three months ended September 30, 2008 include:

  *  Total cash on hand at September 30, 2008 was $10.1 million,
     with $6.3 million of unrestricted cash.
  *  Gross profit on all revenue was $2.1 million, representing a
     gross margin of 16.1%, compared to $6.6 million, or 12.7%, for
     the three months ended September 30, 2007.
  *  Gross profit from homebuilding was $1.3 million, representing
     a gross margin of 10.6%, compared to gross profit from
     homebuilding of $6.0 million, or 12.6%, for the three months
     ended September 30, 2007.
  *  SG&A was $4.6 million, a $3.3 million, or 41.9% decrease as
     compared to SG&A of $7.9 million for the three months ended
     September 30, 2007.
  *  Operating loss was ($4.7) million, or (35.7%), compared to
     ($70.3) million, or (135.2%), for the three months ended
     September 30, 2007.
  *  The Company reported a $1.2 million gain on troubled debt 
     restructuring related to foreclosures by BB&T. The gains resulted 
     from the reversal of prior period impairments and relief from 
     accrued interest and project costs.
  *  The Company reported other income of $1.3 million including a 
     $0.9 million gain related to the settlement of claims with the 
     principal shareholders of Parker-Chandler Homes and a $0.4 million
     gain relating to defaulted unit purchases at the Company's Eclipse 
     project.

Additional results of the nine months ended September 30, 2008 include:

  *  Gross profit on all revenue was $6.3 million, representing a
     gross margin of 15.1%, compared to $20.6 million, or 9.7%,
     for the nine months ended September 30, 2007.
  *  Gross profit from homebuilding was $4.5 million, representing
     a gross margin of 11.3%, compared to gross profit from
     homebuilding of $19.6 million, or 9.8%, for the nine months
     ended September 30, 2007.
  *  SG&A was $12.7 million, an $11.5 million, or 47.5%, decrease
     compared to SG&A of $24.2 million for the nine months ended
     September 30, 2007.
  *  Operating loss was ($24.7) million, or (59.5%), compared to 
     ($81.1) million, or (38.1%), for the nine months ended 
     September 30, 2007.
  *  Impairments and write-offs were $14.6 million, compared to
     $77.4 million for the nine months ended September 30, 2007.

About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly traded, diversified real estate development firm with a focus on affordably 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 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.

The Comstock Homebuilding Companies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5034

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. 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. Additional information concerning these and other important risks and uncertainties can be found under the heading ``Risk Factors'' in the Company's most recent form 10-K, as filed with the Securities and Exchange Commission on March 24, 2008. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

 Comstock Homebuilding Companies, Inc.
 Income Statement
 (dollars in 000s)        Three Months Ended,     Nine Months Ended,
                             September 30,           September 30,
                         --------------------------------------------
                           2008        2007        2008       2007
                         --------------------------------------------
 Revenues
   Revenue -
    homebuilding         $ 12,270    $ 47,769    $ 39,645    $201,106
   Revenue - other            803       4,217       1,807      11,902
                         --------------------------------------------
 Total revenue             13,073      51,986      41,452     213,008
 Expenses
   Cost of sales -
    homebuilding           10,968      41,748      35,168     181,491
   Cost of sales - other        1       3,643          28      10,947
   Impairments and
    write-offs                  2      69,017      14,580      77,400
   Selling, general and
    administrative          4,566       7,860      12,725      24,235
   Interest, real
    estate taxes and
    indirect costs
    related to
    inactive projects       2,199          --       3,615          --
                         --------------------------------------------
 Operating loss            (4,663)    (70,282)    (24,664)    (81,065)
 Gain on troubled debt
  restructuring            (1,194)         --      (9,519)         --
 Other income, net         (1,268)       (715)     (2,865)     (1,361)
                         --------------------------------------------
 Loss before minority
  interest                 (2,201)    (69,567)    (12,279)    (79,704)
 Minority interest             (4)         (2)         (7)         (7)
                         --------------------------------------------
 Total pre tax loss        (2,197)    (69,565)    (12,272)    (79,697)
 Income taxes expense
  (benefit)                     5     (27,097)          5     (30,893)
                         --------------------------------------------
 Net loss                $ (2,202)   $(42,468)   $(12,277)   $(48,804)
                         ============================================

 Basic loss per share    $  (0.13)   $  (2.63)   $  (0.70)   $  (3.04)
 Basic weighted average
   shares outstanding      17,475      16,151      17,431      16,046
                         ============================================

 Diluted loss per share  $  (0.13)   $  (2.63)   $  (0.70)   $  (3.04)
 Diluted weighted
  average shares
  outstanding              17,475      16,151      17,431      16,046
                         ============================================


 Comstock Homebuilding Companies, Inc.
 Balance Sheet
 (dollars in 000s)                              September    December
                                                 30, 2008    31, 2007
 ASSETS
   Cash and cash equivalent                      $  6,304    $  6,822
   Restricted cash                                  3,836       4,985
   Receivables                                        210         370
   Due from related parties                            92          92
   Real estate held for development and sale      147,019     203,860
   Inventory not owned - variable interest
    entities                                       19,250      19,250
   Property, plant and equipment, net               1,000       1,539
   Other assets                                     2,692      22,058
                                                 --------------------
     TOTAL ASSETS                                $180,403    $258,976
                                                 ====================

 LIABILITIES AND SHAREHOLDERS' EQUITY
   Accounts payable and accrued liabilities       $ 8,544    $ 21,962
   Obligations related to inventory not owned      19,050      19,050
   Notes payable                                  104,392     141,214
   Senior unsecured debt                           12,962      30,000
                                                 --------------------
     TOTAL LIABILITIES                            144,948     212,226
                                                 --------------------
   Commitments and contingencies
   Minority interest                                  224         231
                                                 --------------------
 SHAREHOLDERS' EQUITY
   Class A common stock, $0.01 par value,
    77,266,500 shares authorized, 15,211,455
    and 15,120,955 issued and outstanding,
    respectively                                      152         151
   Class B common stock, $0.01 par value,
    2,733,500 shares authorized, 2,733,500
    issued and outstanding                             27          27
   Additional paid-in capital                     156,987     155,998
   Treasury stock, at cost (391,400 Class A
    common stock)                                  (2,439)     (2,439)
   Accumulated deficit                           (119,496)   (107,219)
                                                 --------------------
     TOTAL SHAREHOLDERS' EQUITY                    35,231      46,519
                                                 --------------------
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $180,403    $258,976
                                                 ====================

         Comstock Homebuilding Companies, Inc.
         Bruce Labovitz
         703.230.1131
         investor.relations@comstockhomes.com