Investor Q & A

I am a shareholder, what happens to my shares?

Shares of TOUSA common stock will continue trading in the over-the-counter market. As always, market conditions will influence the value of the shares.

There is no assurance as to what value, if any, will be ascribed in the Chapter 11 case as to the value of TOUSA existing common stock or any other equity securities.

Do shareholders receive payments if shares are cancelled under a reorganization plan?

Creditors have priority over shareholders under the provisions of the U.S. Bankruptcy Code. Shareholders are not entitled to receive a recovery under court-approved reorganization plans until all creditors and others ahead of shareholders in priority receive payment in full.

Why did the NYSE suspend TOUSA's shares?

The shares were suspended on Nov. 19, 2007 in view of the fact that the Company was previously notified by NYSE Regulation that it had fallen below the NYSE continued listing standard for an average closing price of less than $1.00 over a consecutive 30 trading day period. In addition, NYSE Regulation also considered the "abnormally low" trading level of the common stock, which closed at $0.12 on November 15, 2007, with a resultant market capitalization of $7.2 million.

Furthermore, the NYSE noted that the Company had also fallen below the NYSE's continued listing standard for average market capitalization of less than $75 million over a consecutive 30 trading day period and stockholders' equity of $75 million based on its recently reported results for the quarter ended September 30, 2007.

For more information please see www.nyse.com.

Which of the NYSE continued listing standards did TOUSA no longer meet?

The NYSE determined to suspend trading based on the abnormally low pricing levels for the common stock. The NYSE noted that it may, at any time, suspend a security if it believes continued dealings in that security on the NYSE are not advisable.

Where will TOUSA's shares trade now? For how long?

TOUSA common stock is currently trading over the counter on the "Pink Sheets" under the ticker symbol [OTC Pink Sheets: TOUS.PK]. For the most current information, please contact TOUSA's restructuring information line at (866) 588-9290.

What are the "Pink Sheets"?

The "Pink Sheets" is an electronic quotation system that displays quotes from broker dealers or many over-the-counter (OTC) securities. They are published today by Pink Sheets LLC, a privately owned company. Pink Sheets LLC is not registered with the SEC in any way and it is not an NASD Broker-Dealer.

Where are the debentures traded?

Please see www.finra.org/marketdata. The Web site is maintained by The Financial Industry Regulatory Authority (FINRA), the largest non-governmental regulator for all securities firms doing business in the United States.

Will you continue to file financial reports to remain in compliance with the SEC?

Yes, the company plans to continue filing financial reports with the SEC.