915840--11/10/2009--BEAZER_HOMES_USA_INC

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{tax, income, asset}
{personnel, key, retain}
{gas, price, oil}
{cost, regulation, environmental}
{competitive, industry, competition}
{debt, indebtedness, cash}
{customer, product, revenue}
Our home sales and operating revenues could decline due to macro-economic and other factors outside of our control, such as changes in consumer confidence, declines in employment levels and increases in the quantity and decreases in the price of new homes and resale homes in the market. We are dependent on the services of certain key employees, and the loss of their services could hurt our business. The differing financial exposure of our debt holders could impact our ability to complete any restructuring of our indebtedness or impact the terms of such restructuring. If we are unsuccessful in competing against our homebuilding competitors, our market share could decline or our growth could be impaired and, as a result, our financial results could suffer. We may not be able to utilize all of our deferred tax assets. The tax benefits of our pre-ownership change net operating loss carryforwards and any future recognized built-in losses in our assets will be substantially limited since we experienced an ownership change as defined in Section 382 of the Internal Revenue Code. We may incur additional operating expenses due to compliance programs or fines, penalties and remediation costs pertaining to environmental regulations within our markets. We are dependent on the continued availability and satisfactory performance of our subcontractors, which, if unavailable, could have a material adverse effect on our business.

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