1218320--3/16/2007--LEVITT

related topics

{loan, real, estate}

{cost, contract, operation}

{acquisition, growth, future}

{cost, regulation, environmental}

{competitive, industry, competition}

{financial, litigation, operation}

{tax, income, asset}

{cost, operation, labor}

{gas, price, oil}

{debt, indebtedness, cash}

{stock, price, operating}

{condition, economic, financial}

We have experienced a decline in our homebuilding operations over the past year which has adversely affected our sales volume and pricing. Our industry is highly competitive Continued decline in land values could result in further impairment write-offs. Because real estate investments are illiquid, a decline in the real estate market or in the economy in general could adversely impact our business and our cash flow. Shortages of supplies and labor could increase costs and delay deliveries, which may adversely affect our operating results Natural disasters could have an adverse effect on our real estate operations Our ability to sell lots and homes, and, accordingly, our operating results, will be affected by the availability of financing to potential purchasers Our ability to successfully develop communities could affect our financial condition A portion of our revenues from land sales in our master planned communities are recognized for accounting purposes under the percentage of completion method, therefore if our actual results differ from our assumptions our profitability may be reduced. Product liability litigation and claims that arise in the ordinary course of business may be costly which could adversely affect our business We are subject to governmental regulations that may limit our operations, increase our expenses or subject us to liability Building moratoriums and changes in governmental regulations may subject us to delays or increased costs of construction or prohibit development of our properties We are subject to environmental laws and the cost of compliance could adversely affect our business Increased insurance risk could negatively affect our business We utilize community development districts to fund development costs RISKS RELATING TO OUR COMPANY Our indebtedness and leverage could adversely affect our financial condition, restrict our ability to operate and prevent us from fulfilling our obligations Our current land development plans may require additional capital, which may not be available We may not successfully integrate acquired businesses into ours Our controlling shareholders have the voting power to control the outcome of any shareholder vote, except in limited circumstances

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1218320--3/16/2007--LEVITT_CORP