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(BROOKFIELD HOMES LOGO)
    
    NEWS RELEASE
 BROOKFIELD HOMES REPORTS SECOND QUARTER EARNINGS AND
REVISED 2005 EARNINGS GUIDANCE
 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 July 29, 2005 at 11:00 am (Eastern Time) at 1-800-251-4491, toll
free in North America. The archived teleconference may be accessed by dialing 1-800-807-5315, toll
free in North America through August 12, 2005. Alternatively, the conference call can be accessed
by Webcast on Brookfield Homes website at www.brookfieldhomes.com.
 Del Mar, California, July 28, 2005
 
    
    Housing revenue totaled $238 million compared to $212 million for
the same period in 2004, an increase of $26 million. The 2005
increase in revenue is primarily due to an increase in the units
closed during the quarter of 23 units and an increase in the
average selling price of the companys homes to $669,000 from
$639,000 for the same period last year.
    
    Net income for the quarter totaled $32 million or $1.03 per share,
an increase of $14 million or $0.47 per share from the same period
in 2004. Also contributing to the increase in net income are
improvements in the housing gross margin from 20% to 30% for the
same period in 2004. The increase in housing gross margin
percentage is due to a higher percentage of home closings in San
Diego and Washington D.C. area, where margins are the highest as
the company is building on land that it entitled and developed.
    
    Financial Highlights:
 Results of Operations
    
    Three Months Ended June 30
    
    
    Six Months Ended June 30(Millions, except per share amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Housing revenue
    
    $
    238
    
    
    $
    212
    
    
    $
    381
    
    
    $
    351Total revenue
    
    
    253
    
    
    
    229
    
    
    
    405
    
    
    
    372Gross margin
    
    
    76
    
    
    
    48
    
    
    
    124
    
    
    
    81Contribution from bulk land sales to net income
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    Net income
    
    
    32
    
    
    
    18
    
    
    
    51
    
    
    
    28Earnings per share  diluted Excluding bulk land sales
    
    $
    1.03
    
    
    $
    0.56
    
    
    $
    1.54
    
    
    $
    0.87 Bulk land sales
    
    
    
    
    
    
    
    
    
    
    0.09
    
    
    
    $
    1.03
    
    
    $
    0.56
    
    
    $
    1.63
    
    
    $
    0.87




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2 Operating Highlights
 
    
    As a result of strong market conditions and growth in the number of available active selling communities, the
company has in backlog 100% of its planned home closings for 2005.
    
    Brookfield Homes lots owned or controlled total 30,318, an increase of 8% from inventory levels at the end of
2004. Direct ownership of 12,517 lots, provides strong visibility on our future cash flows, and 17,801 lots under
option are controlled with the objective of adding value through land entitlements.
    
    A summary of our lots, owned or controlled under option, by region, follows:
 San Francisco
    
    
    Southland /
    
    
    San Diego /
    
    
    
    
    
    
    WashingtonBay Area
    
    
    Los Angeles
    
    
    Riverside
    
    
    Sacramento
    
    
    D.C. Area
    
    
    TotalLot supplyOwned
    
    
    1,341
    
    
    
    575
    
    
    
    6,253
    
    
    
    310
    
    
    
    4,038
    
    
    
    12,517Optioned
    
    
    3,551
    
    
    
    2,313
    
    
    
    2,322
    
    
    
    4,510
    
    
    
    5,105
    
    
    
    17,801Total
    
    
    4,892
    
    
    
    2,888
    
    
    
    8,575
    
    
    
    4,820
    
    
    
    9,143
    
    
    
    30,318Geographic diversification of lots
    
    
    16
    %
    
    
    10
    %
    
    
    28
    %
    
    
    16
    %
    
    
    30
    %
    
    
    100
    %
 Other Developments
 
    
    2005 Earnings Guidance As a result of continued strong markets and the possible bulk sale
of 2,000 lots over the next 12 months, the company expects earnings per share growth in 2005
to between $6.50 and $7.00 from $4.64 in 2004, and the previous guidance of $5.35.
 Outlook
   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 entitle
and develop land for our own communities and sell lots to other homebuilders. Our portfolio
includes 30,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los Angeles;
San Diego / Riverside; Sacramento; and Washington D.C. Area markets. For more information, visit
the Brookfield Homes website at www.brookfieldhomes.com.




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3 Contact Information:
 Linda Northwood
  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), expected 2005 earnings guidance, possible
bulk land sales and net income derived therefrom, the companys future outlook and growth plans,
and those statements preceded by, followed by, or that include the words planned, should,
goals, expected, potential, estimate, 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.




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4 Brookfield Homes Corporation
Consolidated Statements of Income
 (Unaudited)Three Months Ended
    
    
    Six Months EndedJune 30
    
    
    June 30(thousands, except per share amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004RevenueHousing
    
    $
    237,424
    
    
    $
    212,080
    
    
    $
    380,507
    
    
    $
    351,038Land and other revenues
    
    
    15,006
    
    
    
    16,367
    
    
    
    24,078
    
    
    
    20,598Total revenue
    
    
    252,430
    
    
    
    228,447
    
    
    
    404,585
    
    
    
    371,636Direct cost of sales
    
    
    (176,557
    )
    
    
    (180,927
    )
    
    
    (280,535
    )
    
    
    (290,978
    )75,873
    
    
    
    47,520
    
    
    
    124,050
    
    
    
    80,658Equity in earnings from housing and land joint ventures
    
    
    2,279
    
    
    
    3,142
    
    
    
    9,591
    
    
    
    3,993Selling, general and administrative expense
    
    
    (19,763
    )
    
    
    (17,200
    )
    
    
    (40,987
    )
    
    
    (33,371
    )Minority interest
    
    
    (5,780
    )
    
    
    (4,661
    )
    
    
    (8,989
    )
    
    
    (6,807
    )Net income before taxes
    
    
    52,609
    
    
    
    28,801
    
    
    
    83,665
    
    
    
    44,473Income tax expense
    
    
    (20,254
    )
    
    
    (10,945
    )
    
    
    (32,366
    )
    
    
    (16,900
    )Net income
    
    $
    32,355
    
    
    $
    17,856
    
    
    $
    51,299
    
    
    $
    27,573Weighted average shares outstandingBasic
    
    
    30,998
    
    
    
    30,882
    
    
    
    30,932
    
    
    
    30,881Diluted
    
    
    31,555
    
    
    
    31,600
    
    
    
    31,536
    
    
    
    31,511Earnings per shareBasic
    
    $
    1.05
    
    
    $
    0.58
    
    
    $
    1.66
    
    
    $
    0.89Diluted
    
    $
    1.03
    
    
    $
    0.56
    
    
    $
    1.63
    
    
    $
    0.87




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5 Brookfield Homes Corporation
Condensed Balance Sheets
 (Unaudited)As at June 30
    
    
    As at December 31(thousands)
    
    2005
    
    
    2004
    
    
    2004AssetsHousing and land inventory
    
    $
    819,024
    
    
    $
    680,548
    
    
    $
    679,930Investments in housing and land joint ventures
    
    
    40,344
    
    
    
    76,590
    
    
    
    59,810Consolidated land inventory not owned
    
    
    39,731
    
    
    
    20,925
    
    
    
    47,240Receivables and other assets
    
    
    31,074
    
    
    
    64,258
    
    
    
    73,986Cash and cash equivalents
    
    
    175,250
    
    
    
    81,177
    
    
    
    186,731Deferred income taxes
    
    
    34,885
    
    
    
    45,915
    
    
    
    33,924$
    1,140,308
    
    
    $
    969,413
    
    
    $
    1,081,621Liabilities and Stockholders EquityProject specific and other financings
    
    $
    535,552
    
    
    $
    484,066
    
    
    $
    512,098Accounts payable and other liabilities
    
    
    246,509
    
    
    
    157,834
    
    
    
    256,985Subordinated debt
    
    
    
    
    
    
    137,294
    
    
    
    Minority interest
    
    
    63,361
    
    
    
    58,533
    
    
    
    66,422Stockholders equity
    
    
    294,886
    
    
    
    131,686
    
    
    
    246,116$
    1,140,308
    
    
    $
    969,413
    
    
    $
    1,081,621