Beazer Homes USA, Inc. (NYSE: BZH) ( www.beazer.com ) today announced its financial results for the quarter and nine months ended June 30, 2008. Summary results for the quarter are as follows:

Quarter Ended June 30, 2008

Reported net loss from continuing operations of $(109.7) million, or $(2.85) per share, including pre-tax charges related to inventory impairments and abandonment of land option contracts of $95.5 million, impairments related to joint venture investments of $18.5 million, and goodwill impairments of $4.4 million. For the third quarter of the prior fiscal year, net loss from continuing operations totaled $(118.9) million, or $(3.09) per share.Total revenues: $455.6 million, compared to $753.5 million in the third quarter of the prior year.Home closings: 1,677 homes, compared to 2,659 in the third quarter of the prior year.Average sales price: $257,400 compared to $282,100 in the third quarter of the prior year.New orders: 1,774 homes, compared to 3,048 in the third quarter of the prior year.Net cash provided by operating activities totaled $52.1 million and $24.5 million for the three and nine months ended June 30, 2008, respectively, compared to net cash used in operating activities of $79.1 million and net cash provided by operating activities of $122.0 million, respectively, for the same periods of the prior year.

As of June 30, 2008

Cash and cash equivalents: $314.2 million.No cash borrowings outstanding on revolving credit facility.Net debt to capitalization: 63.2%Backlog: 2,716 homes with a sales value of $668.1 million compared to 5,952 homes with a sales value of $1.69 billion as of June 30, 2007.

"As our third quarter results illustrate, difficult operating conditions in the homebuilding industry persist," said Ian J. McCarthy, President and Chief Executive Officer. "Despite lower home prices, relatively low interest rates and a large choice of available homes, potential homebuyers remain reluctant due to eroding consumer confidence amid concerns about employment growth, higher energy costs and the overall economy. Based on these demand dynamics, coupled with high supply levels of new and existing home inventory, we believe industry conditions will remain challenging for the remainder of this fiscal year and as we enter fiscal 2009. As such, we maintain a disciplined and cautious operating approach and our principal operating goals during this downturn continue to include generating liquidity, reducing overhead and direct costs, limiting investment in land and homes and reducing unsold home inventories. At the same time, we are focused on positioning Beazer Homes for a return to profitability and the market's eventual recovery. We expect strategic actions such as our decisions to reallocate capital and resources within our geographic footprint and further efforts to differentiate Beazer Homes in the eyes of the consumer will enable us to enhance shareholder value in the long term."

Quarter Ended June 30, 2008

Homebuilding revenues declined 41.1% for the quarter ended June 30, 2008, due to both a 36.9% decline in home closings and an 8.8% decline in average selling price from the same period in the prior fiscal year. Home closings declined in all regions, with the most significant declines in the Southeast, the West and Florida. Net new home orders totaled 1,774, a decline of 41.8% from the prior fiscal year. The cancellation rate for the quarter was 36.8%, comparable to 36.3% and 33.7% experienced for the same period in the prior fiscal year and in the second quarter of this year, respectively.