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(BROOKFIELD HOMES LOGO)
    
    NEWS RELEASE
  BROOKFIELD HOMES REPORTS SECOND QUARTER EARNINGS GROWTH 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 second quarter investor conference call can be accessed by
teleconference on August 9, 2004 at 11:00 am (Eastern Time) at 416-695-5261 or
1-877-667-7774. The archived teleconference may be accessed by dialing
416-695-6384 or 1-800-293-5517 and entering the pin code 7552. Alternatively,
the conference call can be accessed by Webcast on Brookfield Homes website at
www.brookfieldhomes.com. Del Mar, California, August 6, 2004 (BHS: NYSE) Brookfield Homes Corporation
today announced strong financial results for the quarter ended June 30, 2004:  
    
    Revenue totaled $232 million, an increase of $32 million over the same
period in 2003. The 2004 increase in revenue is primarily due to a 13%
increase in the average selling price of homes closed in the quarter.
    
    Net income totaled $18 million, compared to $12 million for the same
period in 2003. The increase in net income is primarily due to
continued strong market conditions in all our markets. We increased our projected 2004 home closings to 1,850 units from 1,750 units
as a result of strong market conditions in all our operations. This, together
with improved margins and current forward selling into 2005, led us to increase
our earnings guidance for 2004 to $131 million or $4.15 per share, commented
Ian Cockwell, Brookfield Homes President and Chief Executive Officer. Second Quarter 2004 Financial and Operating Highlights Results of Operations Three Months Ended
    
    Six Months EndedJune 30
    
    June 30(Millions, except per share amounts) (unaudited)
    
    2004
    
    2003
    
    2004
    
    2003Housing revenue
    
    $
    212
    
    
    $
    184
    
    
    $
    351
    
    
    $
    265Total revenue
    
    
    232
    
    
    
    200
    
    
    
    376
    
    
    
    344Gross margin, excluding bulk land sales
    
    
    57
    
    
    
    39
    
    
    
    95
    
    
    
    61Net income
    
    
    18
    
    
    
    12
    
    
    
    28
    
    
    
    27Earnings per share  diluted Excluding bulk land sales
    
    $
    0.56
    
    
    $
    0.24
    
    
    $
    0.87
    
    
    $
    0.40 Bulk land sales
    
    
    
    
    
    
    0.13
    
    
    
    
    
    
    
    0.42$
    0.56
    
    
    $
    0.37
    
    
    $
    0.87
    
    
    $
    0.82




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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 100% of the 1,850
planned home closings for 2004, an increase from the 1,528 homes closed in
2003.
    
    The strength of our markets has contributed to continued price appreciation in
our projects, resulting in a significant improvement in gross margins.
    
    The company continues to control over 23,000 lots, approximately a 12 year
supply based on our current level of activity, providing strong visibility on
our future cash flows.
    
    A summary of 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 through options on over
900 unentitled lots.>
    
    San Diego / Riverside Advanced
development at our major projects in San
Diego and successfully launched three new
communities with strong market acceptance.>
    
    Southland / Los Angeles Sold 136 homes
during the quarter, an increase of 38 units
over the same period in 2003, and acquired
control through options on over 300 lots.>
    
    Northern Virginia Continued to develop
the current phases of the Braemar
master-planned community and optioned a
further 700 unentitled lots near Braemar,
building on the success of this active
selling community. Outlook Home buyers continue to fuel the demand for move-up and luxury housing, as
interest rate increases to date have not significantly inhibited demand. We are
on target to deliver approximately 2,000 homes in 2005, which will continue to
drive our bottom-line growth. In addition, our ability to expand or retract our
owned lot supply through low-risk options in the supply-constrained California
and Virginia markets, positions us for sustainable long-term growth, and
protects our capital if markets soften, concluded Cockwell. * * * * * * * * * * * * * 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
23,000 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 2




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* * * * * * * * * * * * * Note: Certain statements in this press release that are not historical facts,
including information concerning possible or assumed future results of
operations of the company, expected home closings and deliveries (and the
timing thereof), targeted 2004 earnings guidance, visibility of future cash
flows, lot supply, the companys future outlook and growth plans, and those
statements preceded by, followed by, or that include the words projected,
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




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Brookfield Homes Corporation
Consolidated Statements of Income (Unaudited)Three Months Ended
    
    Six Months EndedJune 30
    
    June 30(thousands, except per share amounts)
    
    2004
    
    2003
    
    2004
    
    2003RevenueHousing
    
    $
    212,080
    
    
    $
    183,343
    
    
    $
    351,038
    
    
    $
    264,786Land and other revenues
    
    
    16,367
    
    
    
    5,953
    
    
    
    20,598
    
    
    
    66,285Equity in earnings from housing and land joint ventures
    
    
    3,142
    
    
    
    10,363
    
    
    
    3,993
    
    
    
    12,576Total revenue
    
    
    231,589
    
    
    
    199,659
    
    
    
    375,629
    
    
    
    343,647Direct cost of sales
    
    
    174,827
    
    
    
    152,983
    
    
    
    280,998
    
    
    
    256,66456,762
    
    
    
    46,676
    
    
    
    94,631
    
    
    
    86,983Selling, general and administrative expense
    
    
    17,200
    
    
    
    16,819
    
    
    
    33,371
    
    
    
    26,554Interest expense
    
    
    6,100
    
    
    
    7,512
    
    
    
    9,980
    
    
    
    13,023Minority interest
    
    
    4,661
    
    
    
    2,400
    
    
    
    6,807
    
    
    
    3,174Net income before taxes
    
    
    28,801
    
    
    
    19,945
    
    
    
    44,473
    
    
    
    44,232Income tax expense
    
    
    10,945
    
    
    
    7,985
    
    
    
    16,900
    
    
    
    17,692Net income
    
    $
    17,856
    
    
    $
    11,960
    
    
    $
    27,573
    
    
    $
    26,540Weighted average shares outstandingBasic
    
    
    30,882
    
    
    
    32,028
    
    
    
    30,881
    
    
    
    32,051Diluted
    
    
    31,600
    
    
    
    32,278
    
    
    
    31,511
    
    
    
    32,284Earnings per shareBasic
    
    $
    0.58
    
    
    $
    0.37
    
    
    $
    0.89
    
    
    $
    0.83Diluted
    
    $
    0.56
    
    
    $
    0.37
    
    
    $
    0.87
    
    
    $
    0.82
 4




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Brookfield Homes Corporation
Condensed Balance Sheets (Unaudited)As at June 30
    
    As at December 31(thousands)
    
    2004
    
    2003
    
    2003AssetsHousing and land inventory
    
    $
    680,548
    
    
    $
    638,974
    
    
    $
    567,302Investments in housing and land joint ventures
    
    
    76,590
    
    
    
    84,571
    
    
    
    78,198Consolidated land inventory not owned
    
    
    20,925
    
    
    
    
    
    
    
    25,542Receivables and other assets
    
    
    64,258
    
    
    
    66,349
    
    
    
    80,346Cash and cash equivalents
    
    
    81,177
    
    
    
    36,329
    
    
    
    218,606Deferred tax asset
    
    
    45,915
    
    
    
    18,423
    
    
    
    43,446$
    969,413
    
    
    $
    844,646
    
    
    $
    1,013,440Liabilities and Stockholders EquityProject specific and other financings
    
    $
    484,066
    
    
    $
    351,666
    
    
    $
    426,311Accounts payable and other liabilities
    
    
    157,834
    
    
    
    80,057
    
    
    
    145,090Subordinated debt
    
    
    137,294
    
    
    
    40,000
    
    
    
    Minority interest
    
    
    58,533
    
    
    
    29,543
    
    
    
    59,781Stockholders equity
    
    
    131,686
    
    
    
    343,380
    
    
    
    382,258$
    969,413
    
    
    $
    844,646
    
    
    $
    1,013,440
 5