1218320--3/17/2008--LEVITT

related topics

{operation, natural, condition}

{loan, real, estate}

{cost, contract, operation}

{cost, regulation, environmental}

{investment, property, distribution}

{acquisition, growth, future}

{gas, price, oil}

{financial, litigation, operation}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, operating}

{tax, income, asset}

There has been a decline in the homebuilding industry over the past two years and if it continues it could adversely affect land development activities at our Land Division. 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. Natural disasters could have an adverse effect on our real estate operations. 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 district and special assessment district bonds to fund development costs and we will be responsible for assessments until the underlying property is sold. RISKS ASSOCIATED WITH LEVITT AND SONS BANKRUPTCY FILING We cannot predict the effect that the Chapter 11 Cases will have on Levitt and Sons business and creditors or on Levitt Corporation. Levitt and Sons bankruptcy and the publicity surrounding its filing may adversely affect Levitt Corporation and its subsidiaries other than Levitt and Sons. Levitt and Sons had surety bonds on most of their projects some, of which were subject to indemnity by Levitt Corporation. Levitt Corporation s outstanding advances due from Levitt and Sons may not be repaid. RISKS RELATING TO OUR COMPANY Our outstanding debt instruments impose restrictions on our operations and activities and could adversely affect our financial condition. Our current land development plans may require additional capital, which may not be available on favorable terms, if at all. Margins in our Land Division are subject to significant volatility. When commercial leasing projects become available for sale, they may not yield anticipated returns, which could harm our operating results, reduce cash flow, or cause management to choose not to sell certain commercial assets. We are dependent upon certain key tenants in our commercial developments and decisions made by these tenants or adverse developments in the business of these tenants could have a negative impact on our financial condition. It may be difficult and costly to rent vacant space and space which may become vacant in future periods. The loss of the services of our key management and personnel could adversely affect our business Our future acquisitions may reduce our earnings, require us to obtain additional financing and expose us to additional risks. Our controlling shareholders have the voting power to control the outcome of any shareholder vote, except in limited circumstances.

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1218320--3/17/2008--LEVITT_CORP