FOR IMMEDIATE RELEASE Davis Homes Will Cease Operations Market conditions take toll on local company Warranties will be honored (Indianapolis, IN, July 23, 2008) –Davis Homes, one of Central Indiana’s largest neighborhood developers and homebuilders will stop its normal business operations on July 23 due to a severe downturn in the housing market. Started in 1985, the local, family-owned company built more than 12,000 homes in more than 80 neighborhoods across Central Indiana but was hit hard by the deterioration of the housing market that began locally in 2007. Unlike some companies that simply closed their doors, Davis has worked hard during the past few months to implement a plan to complete all the homes that were under construction and to pay homebuilding vendors and subcontractors. In addition, Davis invested in warranty insurance plans for all of its homes and homeowners to ensure that future warranty obligations will be met. “It has been an extremely difficult process,” said Brad Davis, CEO of Davis Homes. “My father and I started this company in 1985. We worked hard to provide a quality home for a fair price. As hard as I and our devoted management team and all employees have worked, Davis Homes could not survive a housing market that has devastated many other builders and homeowners both in Indianapolis and throughout the nation. “However, I’m proud that we worked hard to the best of our ability to do the right thing to take care of our customers and vendors as the reality set in that we most likely could not sustain operations,” continued Davis. “I hope to find a way to return to homebuilding in the future. It has been a major part of my life and I love the business.” Davis customers who have homes that were built during the past 10 years will continue to receive warranty coverage under the 2-10 Warranty provided at the closing of their home. 2-10 Warranty is a product from Home Buyer’s Warranty, Corp. For more than 20 years, Davis Homes has purchased home warranty insurance for all the homes they built to protect homeowners against a financial downturn like the current one that prevents the company from performing warranty services. Davis Homes has made provisions with its financial partners to continue to maintain all its neighborhoods. It’s also working diligently to secure comparable homebuilding companies to complete each one. For more details on individual neighborhoods, homeowners can visit www.davishomes.com for information. Across the country more than 30 large national home builders (in the top 200) have discontinued operations since 2007 with a forecast of more to follow. Locally, the housing market has been declining since 2006. However, the rapid decline in Central Indiana began in mid-2007. Between 2003 and 2005, the number of permits issued to build new homes averaged 13,200. In 2006 that number was 9,500 followed by 7,200 in 2007. It’s estimated that approximately 4,800 permits will be issued by the end of 2008. During its years in business Davis Homes actively supported a number of local causes including the Indianapolis Children’s Museum, Indiana Black Expo and Habitat for Humanity.