I just got the below letter on the fax and all I can say is wow! I hadn’t heard anything about this since last year before the holidays. You can read about it in the Austin Business Journal. Here is the TOUSA website where you’ll hear the Newmark Homes President talk about the reorganization and see a link for the reorganization press release in the lower left side of the screen. I have one client under contract with Frederick Harris Estate Homes. I need to investigate any possible implications to this. If you have any info on this please shoot me an email.

January 29, 2008 Dear Realtor: We are writing to bring you up to date on recent actions that Newmark Homes’ corporate parent, TOUSA, Inc,, has taken to ensure the Company has a long and prosperous future. Today, TOUSA, Inc. and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. TOUSA Homes’ brands – Engle Homes, Newmark Homes, Trophy Homes and Fredrick, Harris Estate Homes are included in this filing. The filing will allow us to restructure our balance sheet, preserve the Company’s value, and position it to navigate the challenging homebuilding market successfully. Unlike other homebuilders that have recently landed in unplanned Chapter 11 cases as a result of industry conditions, we have taken steps to minimize the impact of the filing on our operations and to expedite our stay in bankruptcy. In connection with the filing, TOUSA also announced that we have reached a pre-negotiated deal with our senior noteholders to implement a restructuring plan. As one of our active Realtors, you are a valuable part of our company and critical to our success. We want to assure you that TOUSA is not going out of business and that you can continue marketing and selling new homes from Newmark Homes with confidence because its corporate parent has taken the steps necessary to assure its long-term financial strength and stability. Chapter 11 is a tool that allows companies to fix their financial problems so that they can stay in business and build upon their core strengths to serve the needs of their customers, It is important that you understand that this is a financial issue and not a reflection of our operations, We have been building high-quality homes at outstanding values from many years and will continue to do so. All closings are expected to remain on schedule and our community building projects should continue uninterrupted. We’ve ensured that all Realtor commission(s) will be paid from escrow as per our normal course of business. In short, the actions TOUSA has taken today will result in a stronger Newmark Homes that will be better able to cope with today’s challenging housing market and prosper once conditions return to normal. It is also important to note that TOUSA’s affiliates that provide financial services are not included in the filing and will not be affected by it. This includes Universal Land Title, Inc., Preferred Home Mortgage Company and Alliance Insurance and Information Services. This means that customers who have obtained mortgages, title insurance and other financial services products from these businesses will not be impacted by the filing. If you have any questions or concerns about recent developments, please do not hesitate to call your local contact or our toll-free information hotline at (8E36) 588-9290. Also please feel free to visit www.tousa.com for updates on our restructuring. We appreciate your support and look forward to continuing our relationship with you. Sincerely, Brian Shields