##### 



(BROOKFIELD HOMES LOGO)
    
    NEWS RELEASE
 BROOKFIELD HOMES REPORTS FIRST QUARTER EARNINGS AND
CURRENT 2004 SALES IN HAND OF 80% Investors, analysts and other interested parties can access Brookfield Homes
Supplemental Information Package on Brookfield Homes website under the
Investor Relations/Financial Reports section at www.brookfieldhomes.com.
Brookfield Homes first quarter investor conference call can be accessed by
teleconference on May 5, 2004 at 11:00 am (Eastern Time) at 416-695-5261 or
1-800-446-4472. The archived teleconference may be accessed by dialing
1-888-509-0082. Alternatively, the conference call can be accessed by Webcast
on Brookfield Homes website at www.brookfieldhomes.com. Del Mar, California, May 4, 2004 (BHS: NYSE) Brookfield Homes Corporation
today announced strong financial results for the quarter ended March 31, 2004:  
    
    Revenue totaled $144 million, similar to revenue for the same period
in 2003. Included in the revenues for 2003 is $52 million from the
bulk land sale of 2,600 lots in Riverside County, California. The 2004
increase in revenue from housing is primarily due to an increase in
active selling communities resulting in 53% more home closings over
the same period in 2003.
    
    Net income totaled $10 million, compared to $15 million for the same
period in 2003, which included gains of $9.6 million from the bulk
land sale. On a comparative basis, excluding the gain on the bulk land
sale, net income increased by $5 million. The continued strength of the residential markets in California and Northern
Virginia, and our current mix of higher priced projects contributed to
increased operating returns for the company during the quarter. In addition,
our strong backlog of home deliveries for 2004 confirms our strategy of
investing in supply-constrained, high growth markets, commented Ian Cockwell,
Brookfield Homes President and Chief Executive Officer. First Quarter 2004 Financial and Operating Highlights Results of Operations
    
    Three Months Ended March 31(Millions, except per share amounts) (unaudited)
    
    2004
    
    2003Housing revenue
    
    $
    139
    
    
    $
    82Total revenue
    
    
    144
    
    
    
    144Gross margin, excluding bulk land sales
    
    
    38
    
    
    
    22Net income
    
    
    10
    
    
    
    15Earnings per share  diluted Excluding bulk land sales
    
    $
    0.31
    
    
    $
    0.15 Bulk land sales
    
    
    
    
    
    
    0.30$
    0.31
    
    
    $
    0.45




---



##### 



Operating Highlights  
    
    As a result of strong market conditions and growth in the number of active selling communities, the company closed or has
in backlog 80% of its planned 1,750 home closings for 2004. This compares to 70% in 2003.
    
    A summary of first quarter 2004 operating highlights by region follows:  >
    
    San Francisco Bay Area Opened two new housing communities in Windemere with
strong market acceptance and sales, and acquired control of over 800 lots.>
    
    San Diego / Riverside Advanced development at its major projects in San Diego
and successfully launched three new communities with strong market acceptance.>
    
    Southland / Los Angeles Sold 140 homes during the quarter, an increase of 79
units over the same period in 2003.>
    
    Northern Virginia Continued to develop the current phases of the Braemar
master-planned community and optioned a further 700 lots near Braemar, building
on the success of this active selling community. Special and Regular Dividend Declaration As previously announced, Brookfield Homes declared a special dividend of $9.00
per share comprised of $4.50 in cash and $4.50 in principal amount of the
companys 12% senior subordinated notes due 2020, which are redeemable at the
option of the company at any time at par. The company arranged for payment of the special dividend on April 30, 2004. As
a result of the deferred ex-dividend date of Monday, May 3, 2004, it is
expected that non-registered shareholders, for example those holding shares
through a broker, will have their subordinated note position and any fractional
interests finalized on or about May 6, 2004. On May 3, 2004, the subordinated
notes became eligible for trading on the New York Stock Exchange through its
Automated Bond System under the symbol BHS20. On May 4, 2004, the board of directors declared a regular semi-annual dividend
on its common shares of $0.08 per share payable on June 30, 2004 to
stockholders of record on June 15, 2004. Outlook We remain on track to deliver at least 1,750 homes in 2004 and 2,000 homes in
2005. The risk of a possible rise in interest rates has not impacted our
markets, where buyers continue to fuel the demand for move-up and luxury
housing. Our earnings guidance for 2004 increased to $3.48 per share, which
excludes any gains on bulk land sales. Our strong operating results in 2003, in
part as a result of bulk land sales, provided us with a unique opportunity to
return capital to our shareholders. With $70 million of cash and cash
equivalents currently remaining on our balance sheet and our 22,000 lots
controlled, we are in a strong position to deliver future bottom-line growth,
concluded Cockwell. * * * * * * * * * * * * * 2




---



##### 



Brookfield Homes Corporation Brookfield Homes Corporation is a residential homebuilder and land developer,
building homes and developing land in master-planned communities and infill
locations. We design, construct and market single-family and multi-family homes
primarily to move-up and luxury homebuyers. We also develop land for our own
communities and sell lots to other homebuilders. Our portfolio includes over
22,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los
Angeles; San Diego / Riverside; Sacramento; and Northern Virginia markets. For
more information, visit the Brookfield Homes website at
www.brookfieldhomes.com. Contact Information: Linda Northwood
Director, Investor Relations
Tel: 858-481-2567
Email: lnorthwood@brookfieldhomes.com * * * * * * * * * * * * * Note: Certain statements in this press release that are not historical facts,
including information concerning the special dividend payment, possible or
assumed future results of operations of the company, expected home closings and
deliveries (and the timing thereof), targeted 2004 earnings guidance, the
companys future outlook and growth plans, and those statements preceded by,
followed by, or that include the words planned, should, goals,
expected, targeted, scheduled or similar expressions, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Undue reliance should not be placed on
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors, which may cause the actual results to differ
materially from the anticipated future results expressed or implied by such
forward-looking statements. Factors that could cause actual results to differ
materially from those set forward in the forward-looking statements include,
but are not limited to: changes in general economic, real estate and other
conditions; mortgage rate changes; availability of suitable undeveloped land at
acceptable prices; adverse legislation or regulation; ability to obtain
necessary permits and approvals for the development of our land; availability
of labor or materials or increases in their costs; ability to develop and
market our master-planned communities successfully; confidence levels of
consumers; ability to raise capital on favorable terms; adverse weather
conditions and natural disasters; relations with the residents of our
communities; risks associated with increased insurance costs or unavailability
of adequate coverage and ability to obtain surety bonds; competitive conditions
in the homebuilding industry, including product and pricing pressures; and
additional risks and uncertainties referred to in our Form 10-K and other SEC
filings, many of which are beyond our control. We undertake no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise. 3




---



##### 



Brookfield Homes Corporation
Consolidated Statements of Income (unaudited)Three Months EndedMarch 31(thousands, except per share amounts)
    
    2004
    
    2003RevenueHousing
    
    $
    138,958
    
    
    $
    81,443Land and other revenues
    
    
    4,231
    
    
    
    60,332Equity in earnings from housing and land joint ventures
    
    
    851
    
    
    
    2,213Total revenue
    
    
    144,040
    
    
    
    143,988Direct cost of sales
    
    
    106,171
    
    
    
    103,68137,869
    
    
    
    40,307Selling, general and administrative expense
    
    
    16,171
    
    
    
    9,735Interest expense
    
    
    3,880
    
    
    
    5,511Minority interest
    
    
    2,146
    
    
    
    774Net income before taxes
    
    
    15,672
    
    
    
    24,287Income tax expense
    
    
    5,955
    
    
    
    9,707Net income
    
    $
    9,717
    
    
    $
    14,580Weighted average shares outstandingBasic
    
    
    30,881
    
    
    
    32,074Diluted
    
    
    31,423
    
    
    
    32,221Earnings per shareBasic
    
    $
    0.31
    
    
    $
    0.46Diluted
    
    $
    0.31
    
    
    $
    0.45
 4




---



##### 



Brookfield Homes Corporation
Condensed Balance Sheets (unaudited)(thousands)
    
    March 31, 2004
    
    December 31, 2003AssetsHousing and land inventory
    
    $
    632,539
    
    
    $
    567,302Investments in housing and land joint ventures
    
    
    75,154
    
    
    
    78,198Consolidated land inventory not owned
    
    
    33,931
    
    
    
    25,542Receivables and other assets
    
    
    64,213
    
    
    
    80,346Cash and cash equivalents
    
    
    221,059
    
    
    
    218,606Deferred tax asset
    
    
    40,043
    
    
    
    43,446$
    1,066,939
    
    
    $
    1,013,440Liabilities and Stockholders EquityProject specific and other financings
    
    $
    456,574
    
    
    $
    426,311Accounts payable and other liabilities
    
    
    153,101
    
    
    
    145,090Minority interest
    
    
    65,289
    
    
    
    59,781Stockholders equity
    
    
    391,975
    
    
    
    382,258$
    1,066,939
    
    
    $
    1,013,440
 5