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Tarragon Corporation Reports Strong November Homebuilding Results Led By Southeast Condominium Sales Campaign

Posted on: Tuesday, 5 December 2006, 09:01 CST

NEW YORK, Dec. 5 /PRNewswire-FirstCall/ -- Tarragon Corporation , a leading urban homebuilder specializing in the development and marketing of high-density residential communities, today announced a significant increase in condominium sales during November, especially in Florida and South Carolina.

A special Thanksgiving sales campaign involved twelve Florida and South Carolina condominium conversion projects and resulted in 212 net orders representing $35.1 million in homebuilding sales. The "Home-A-Palooza" program, as it was marketed, featured limited time only incentives including an impressive high-tech media package and developer contributions to closing costs.

"The response to this event shows that there is a great reservoir of demand for quality condominiums when you make a compelling case for value," said William Friedman, Chairman and CEO of Tarragon Corporation. "For buyer incentives to work, you need to have the right product in the right place at the right price, which is why so many home buyers in Florida and South Carolina chose Tarragon."

"Beyond incentives, now is an excellent time to buy," continued Mr. Friedman. "With 30-year fixed mortgage rates around six and a quarter percent, builder incentives, and an inventory of high quality and affordable condominium homes available, there's every reason to buy now."

Tarragon expects to close on approximately 150 of the 212 contracts generated by the campaign by year-end, resulting in $25 million more in homebuilding revenue than anticipated in its recent earnings guidance, adding about $0.05 of net income per diluted share in the fourth quarter of 2006. Most of the net cash proceeds will go to reduce debt and bolster cash reserves. Mr. Friedman noted, "The addition of these contracts to our total projected closings will result in the pay down of approximately $125 million in condominium-related debt from October 1 to January of next year. We will continue to focus on debt reduction and cash liquidity as we prepare for 2007 and the opportunities that exist in our Northeast market."

During the first two months of the fourth quarter Tarragon wrote more than 430 net orders worth $94 million and closed 273 homes valued at $61.3 million compared to 176 net orders worth $57.6 million and 192 closings valued at $43.1 million in August and September.

About Tarragon Corporation

Tarragon Corporation is a leading homebuilder specializing in the development and marketing of residential communities in high-density, urban locations. The Company's operations are concentrated in the Northeast, Florida, Texas and Tennessee. To learn more about Tarragon Corporation, visit: http://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. Actual results and the timing of certain events could differ materially from those projected or contemplated by the forward-looking statements due to a number of factors, including, but not limited to, general economic conditions, interest rates, weather, the availability of financing for development and acquisition and other risk factors outlined in the Company's SEC reports, annual report and Form 10-K. The Company assumes no responsibility to update forward-looking information contained herein.

TARR-G

Tarragon Corporation

CONTACT: Alan H. Oshiki, Broadgate Consultants, LLC, +1-212-232-2222,aoshiki@broadgate.com; or William S. Friedman, Tarragon Corporation, +1-212-949-5000, wfriedman@tarragoncorp.com

Web site: http://www.tarragoncorp.com/

Source: PRNewswire-FirstCall

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