-- Q3 2009 Net Loss of $361 Million ($1.15 Per Share) Includes $134 Million of Merger and Debt Retirement Costs and $164 Million of Impairments and Related Charges

-- Q3 Homebuilding Gross Margin of 13.1%, Before the Impact of Interest, Merger Costs, Impairments and Land-related Charges, Increases 370 Basis Points from Q2 2009

-- Company Ends Quarter With $1.6 Billion in Cash After Retiring $1.7 Billion of Debt in the Period; Expects to Finish 2009 with $2.0 Billion in Cash

-- Company Raises Merger Synergy and Savings Target by 25% to $440 Million

-- Quarter-end Backlog of 8,383 Homes, Valued at $2.2 Billion

Pulte Homes (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2009. For the quarter, the Company reported a net loss of $361.4 million, or $1.15 per share, inclusive of approximately $86.7 million of charges and transaction costs associated with its merger with Centex Corporation and $163.8 million in inventory impairments and other land-related charges. The Company also recorded a $47.4 million loss related to the debt retired in the quarter. For the comparable period in 2008, the Company reported a net loss of $280.4 million, or $1.11 per share, including impairments and land-related charges of $266.6 million.

Consolidated revenue for the quarter was $1.1 billion, compared with prior year revenue of $1.6 billion.

On August 18, 2009, Pulte Homes completed its previously announced merger with Centex Corporation. The Company's 2009 third quarter and nine month financials are inclusive of Centex's operations for the period from August 19, 2009 through September 30, 2009. Prior year results have not been adjusted for the merger.

"We are continuing to make progress in the performance of our business as Pulte's third quarter gross margin before interest, merger costs, impairments and land-related charges expanded to 13.1%, an increase of 370 basis points from the second quarter 2009," said Richard J. Dugas, Jr., Chairman, President and CEO of Pulte Homes. "Looking past the quarter, our merger with Centex offers powerful near-term opportunities as reflected in our increased synergy and savings target of $440 million on an annualized basis. In addition, our post-merger analysis indicates the potential to realize annualized purchasing synergies on the combined business in the range of $150 million to $200 million.

"Longer term, Centex's strong brand and 27,000 finished lots, many in communities serving the first-time homebuyer, enable Pulte to expand its presence within this important customer segment with minimal future investment. We are rapidly integrating the two companies and are pleased with the opportunities we see to serve more customers, drive greater construction efficiencies, and accelerate our return to profitability.

"Beyond the impact of the merger, Pulte's Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand," said Mr. Dugas. "Challenges remain, however, as economic weakness, foreclosures, rising unemployment and recent uncertainty over the expiration of the federal tax credit continue to influence buyer behavior."

Third Quarter Results

Revenue from homebuilding settlements in the third quarter ended September 30, 2009, totaled $1.1 billion, compared with $1.5 billion in last year's third quarter. Lower revenue for the quarter reflects a 23% decrease in closings to 4,166 homes, combined with a 10% decrease in average selling price to $253,000. Revenue and closings for the period benefitted from the inclusion of Centex's operations for the final six weeks of the quarter.

Homebuilding cost of sales for the third quarter totaled $1.1 billion, inclusive of $10.5 million of merger-related charges and $132.6 million of impairments and land-related charges. For the prior year quarter, homebuilding cost of sales was $1.6 billion, inclusive of $249.9 million in impairments and land-related charges.

Reported homebuilding selling, general & administrative (SG&A) expense for the period was $209.1 million, inclusive of $51 million of one-time, merger-related expenses. Excluding merger-related costs, SG&A for the quarter was 15.0% of settlement revenue. SG&A expense for the third quarter 2008 was $192.0 million, or 12.7% of settlement revenue.

Inclusive of all merger costs and impairment and land-related charges of $240.5 million, the Company's reported third quarter homebuilding pre-tax loss was $291.6 million. For the comparable prior year period, the Company reported a $302.0 million pre-tax loss inclusive of $266.6 million of impairments and land-related charges.

Third quarter 2009 net new home orders, inclusive of Centex operations for the period of August 19, 2009 through September 30, 2009 increased 35% to 4,048 homes compared with prior year orders of 3,008 homes. The Company's reported quarter-end backlog as of September 30, 2009 was 8,383 homes, valued at $2.2 billion. Reported backlog reflects the inclusion of 4,585 homes which were in Centex's backlog at merger close and which were recorded directly to Pulte's backlog without impacting sign-ups for the period. At quarter end, Centex's backlog totaled 4,316 homes. Backlog for the third quarter 2008 was 5,885 homes, valued at $1.7 billion.

The Company's financial services operations reported a pre-tax loss of $8.6 million for the quarter, compared with pre-tax income of $10.1 million for the prior year. Financial services results for the quarter are inclusive of Centex's mortgage and title operations for the period from August 19, 2009 through September 30, 2009. The change in pre-tax income for the period was due to a 24% decline in mortgage loans originated during the quarter compared with the prior year, increased loan-loss reserves and merger-related costs. The mortgage capture rate for the quarter was 86%, compared with 93% for the same period last year.

Nine Month Results

For the nine months ended September 30, 2009, Pulte Homes' net loss was $1.1 billion, or $3.88 per share, compared with a net loss of $1.1 billion, or $4.48 per share, for the prior year period. Consolidated revenue for the period was $2.4 billion, compared with $4.6 billion for the first nine months of last year. Reported 2009 nine-month financial results reflect the Company's merger with Centex Corporation that closed on August 18, 2009. Reported results are inclusive of Centex for the period from August 19, 2009 through September 30, 2009. Prior year results have not been adjusted for the merger.

Revenue from homebuilding settlements for the period was $2.3 billion, compared with revenue of $4.5 billion in the prior year. Revenue for the period benefitted from the inclusion of approximately six weeks of Centex results, partially offset by a 10% decrease in average selling price to $258,000, combined with a 43% decrease in the number of closings to 8,813 homes.

The Company's reported homebuilding pre-tax loss for the period narrowed to $987 million, an improvement from a pre-tax loss of $1.2 billion for the prior year period. Homebuilding SG&A expense for the period, inclusive of $56.6 million in merger-related costs, totaled $442.6 million compared with $571.6 million in the prior year. For the first nine months, the Company recorded $693.3 million of impairments and land-related charges. For the prior year period, impairments and land-related charges totaled $1.2 billion.

For the first nine months of 2009, Pulte's financial services operations, inclusive of approximately six weeks of Centex's mortgage and title operations, generated a pre-tax loss of $18.7 million, compared with pre-tax income of $35.9 million in the prior year. The pre-tax loss reported in 2009 was due to a 43% decline in mortgage loans originated during the period compared with the prior year period, increased loan-loss reserves and merger-related costs.

Credit Facility Update

As of September 30, 2009, Pulte Homes was not in compliance with the tangible net worth covenant under its credit facility. The Company subsequently requested and received a limited waiver from its banks until December 15, 2009, permitting the Company to issue letters of credit under the credit facility during the term of the waiver. The Company expects to negotiate a permanent amendment by December 15, 2009, but there can be no assurance that any agreement regarding the amendment can be reached. If the Company does not reach an agreement with its banks prior to expiration of the waiver, the Company may seek an extension of the waiver or alternatively terminate the credit facility. In the event the Company terminates the credit facility, it believes it has sufficient liquidity given its current and expected cash position.

Merger Update

Following completion of its merger with Centex on August 18, 2009, Pulte immediately began integrating the corporate and field operations of the two companies with the goal of achieving the merger's strategic benefits related to profitability, cost savings, operating efficiencies and branding. The Company estimates that synergies realized through the fourth quarter 2009 are expected to generate annualized cost savings of $260 million. Further, the Company expects to reach its initial synergy target of $350 million annually early in 2010 and reach $440 million of savings on an annualized basis by year end 2010. Incremental to these savings, the Company's post-merger analysis indicates the potential to realize purchasing synergies on the combined business in the range of $150 million to $200 million.

As previously announced, on September 9, 2009, the Company successfully completed its tender for $1.5 billion of outstanding Pulte Homes and Centex senior notes. The Company retired a total of $1.7 billion of outstanding debt during the quarter, and retired $1.9 billion of debt for the first nine months of the year.

"In addition to improving our net-debt-to-total-capital ratio to 45%, Pulte's $1.9 billion in debt repayments will reduce the Company's annual interest payments by approximately $130 million, which is $30 million more than estimated when we announced the Centex merger," said Roger A. Cregg, Executive Vice President and Chief Financial Officer. "At quarter end, we had $1.6 billion of cash on the balance sheet, which we expect will grow to $2.0 billion by year end."

A conference call discussing Pulte Homes' third quarter results will be held Wednesday, November 4, 2009, at 8:30 a.m. Eastern Time, and web cast live via Pulteinc.com. Interested investors can access the call via the Company's home page at www.pulteinc.com, and are encouraged to download the available slides that provide additional details on the Company's third quarter results.

Forward-Looking Statements

This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "may," "can," "could," "might," "will" and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: the possibility that the expected efficiencies and cost savings from the merger with Centex will not be realized, or will not be realized within the expected time period; the risk that the Pulte and Centex businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; interest rate changes and the availability of mortgage financing; continued volatility in, and potential further deterioration of, the debt and equity markets; competition within the industries in which Pulte operates; the availability and cost of land and other raw materials used by Pulte in its homebuilding operations; the availability and cost of insurance covering risks associated with Pulte's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation, including the effects from the Emergency Economic Stabilization Act, the American Recovery and Reinvestment Act and the interpretation of tax, labor and environmental laws; changes in consumer confidence and preferences; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Pulte's Annual Reports on Form 10-K and Annual Reports to Stockholders for the fiscal years ended December 31, 2008, and other public filings with the Securities and Exchange Commission (the "SEC") for a further discussion of these and other risks and uncertainties applicable to our businesses.

Pulte Homes, Inc.
Condensed Consolidated Results of Operations
($000's omitted, except per share data)
(Unaudited)
                          Three Months Ended                Nine Months Ended
                          September 30,                     September 30,
                          2009             2008             2009              2008
CONSOLIDATED RESULTS:
Revenues:
Homebuilding              $ 1,056,791      $ 1,521,789      $ 2,280,016       $ 4,500,366
Financial Services        34,303           36,438           73,550            118,871
Total revenues            $ 1,091,094      $ 1,558,227      $ 2,353,566       $ 4,619,237
Pre-tax income (loss):
Homebuilding              $ (291,605  )    $ (301,966  )    $ (986,521   )    $(1,228,417 )
Financial Services        (8,612      )    10,092           (18,730      )    35,938
Other non-operating       (58,502     )    (2,717      )    (52,643      )    (10,395     )
Loss before income taxes  (358,719    )    (294,591    )    (1,057,894   )    (1,202,874  )
Income taxes (benefit)    2,668            (14,204     )    7,776             (67,926     )
Net loss                  $ (361,387  )    $ (280,387  )    $ (1,065,670 )    $(1,134,948 )
EARNINGS PER SHARE -
ASSUMING DILUTION:
Net loss                  $ (1.15     )    $ (1.11     )    $ (3.88      )    $ (4.48     )
Shares used in per share
calculations              312,996          253,582          274,327           253,401

Pulte Homes, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
                                                               September 30,  December 31,
                                                               2009           2008
                                                               (Unaudited)
ASSETS
Cash and equivalents                                           $ 1,516,623    $ 1,655,264
Restricted cash                                                34,495         -
Unfunded settlements                                           15,124         11,988
House and land inventory                                       5,630,816      4,201,289
Land held for sale                                             93,193         164,954
Land, not owned, under option agreements                       203,525        171,101
Residential mortgage loans available-for-sale                  225,798        297,755
Investments in unconsolidated entities                         70,614         134,886
Goodwill                                                       1,394,965      -
Intangible assets, net                                         193,823        102,554
Other assets                                                   826,828        595,098
Income taxes receivable                                        39,082         373,569
Deferred income tax assets, net                                37,587         -
                                                               $ 10,282,473   $ 7,708,458
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable                                               $ 333,467      $ 218,135
Customer deposits                                              93,596         40,950
Accrued and other liabilities                                  1,912,899      1,079,195
Collateralized short-term debt, recourse solely to applicable
non-guarantor subsidiary assets                                63,590         237,560
Income tax liabilities                                         285,596        130,615
Senior notes                                                   4,279,915      3,166,305
Total liabilities                                              6,969,063      4,872,760
Equity:
Equity attributable to Pulte Homes, Inc.                       3,309,389      2,835,698
Noncontrolling interests                                       4,021          -
Total equity                                                   3,313,410      2,835,698
                                                               $ 10,282,473   $ 7,708,458

Pulte Homes, Inc.
Segment Data
($000's omitted)
(Unaudited)
                             Three Months Ended                Nine Months Ended
                             September 30,                     September 30,
                             2009             2008             2009             2008
HOMEBUILDING:
Home sales (settlements)     $ 1,053,787      $ 1,508,825      $ 2,272,231      $ 4,460,393
Land sales                   3,004            12,964           7,785            39,973
Homebuilding Revenue         1,056,791        1,521,789        2,280,016        4,500,366
Home cost of sales           (1,080,256  )    (1,599,064  )    (2,703,085  )    (4,981,387  )
Land cost of sales           (12,492     )    (27,910     )    (24,760     )    (160,979    )
Selling, general
& administrative expense     (209,055    )    (191,997    )    (442,574    )    (571,577    )
Other income (expense), net  (46,593     )    (4,784      )    (96,118     )    (14,840     )
Pre-tax loss                 $ (291,605  )    $ (301,966  )    $ (986,521  )    $(1,228,417 )
FINANCIAL SERVICES:
Pre-tax income (loss)        $ (8,612    )    $ 10,092         $ (18,730   )    $ 35,938
OTHER NON-OPERATING:
Pre-tax income (loss):
Net interest income          $ 1,383          $ 5,639          $ 6,644          $ 17,757
Other income (expense), net  (59,885     )    (8,356      )    (59,287     )    (28,152     )
Total other non-operating    $ (58,502   )    $ (2,717    )    $ (52,643   )    $ (10,395   )

Pulte Homes, Inc.
Business Operating Data
($000's omitted)
(Unaudited)
                            Three Months Ended        Nine Months Ended
                            September 30,             September 30,
                            2009         2008         2009         2008
Homebuilding settlement
revenues                    $ 1,053,787  $ 1,508,825  $ 2,272,231  $ 4,460,393
Unit settlements:
Northeast                   508          497          907          1,433
Southeast                   629          776          1,265        2,405
Gulf Coast                  1,268        1,353        2,635        4,075
Midwest                     545          661          1,108        1,899
Southwest                   685          1,571        1,821        4,191
West                        526          519          1,072        1,545
Other Homebuilding          5            -            5            -
                            4,166        5,377        8,813        15,548
Average selling price       $ 253        $ 281        $ 258        $ 287
Net new orders:*
Northeast                   502          328          1,283        1,363
Southeast                   753          493          1,648        2,063
Gulf Coast                  1,213        741          2,835        3,542
Midwest                     502          553          1,290        1,832
Southwest                   634          629          2,246        3,516
West                        420          264          1,111        1,227
Other Homebuilding          24           -            24           -
                            4,048        3,008        10,437       13,543
Net new orders - dollars**  $ 1,081,000  $ 785,000    $ 2,730,000  $ 3,659,000
Unit backlog:
Northeast                                             1,382        721
Southeast                                             1,461        939
Gulf Coast                                            2,687        1,589
Midwest                                               851          761
Southwest                                             998          1,335
West                                                  985          540
Other Homebuilding                                    19           -
                                                      8,383        5,885
Dollars in backlog                                    $ 2,196,800  $ 1,708,700

* Net new order units exclude 4,585 units of acquired backlog from the merger with Centex.

** Net new order dollars represents a composite of new order dollars combined with other movement of the dollars in backlog related to cancellations and change orders.

Pulte Homes, Inc.
Business Operating Data, continued
($000's omitted)
(Unaudited)
                               Three Months Ended    Nine Months Ended
                               September 30,         September 30,
                               2009       2008       2009         2008
MORTGAGE ORIGINATIONS:
Origination volume             2,981      3,924      6,482        11,369
Origination principal          $ 621,765  $ 875,100  $ 1,370,209  $ 2,555,800
Capture rate percentage        85.6%      93.4%      88.5%        91.9%
Pulte Homes, Inc.
Supplemental Information
($000's omitted)
(Unaudited)
                               Three Months Ended    Nine Months Ended
                               September 30,         September 30,
                               2009       2008       2009         2008
Interest expense:
Homebuilding (included in
home cost of sales)            $ 36,173   $ 52,526   $ 124,496    $ 149,650
Financial Services             219        1,468      834          4,893
Other non-operating            431        723        1,345        2,179
Total interest expense         $ 36,823   $ 54,717   $ 126,675    $ 156,722
Depreciation & amortization    $ 14,539   $ 18,713   $ 39,342     $ 57,541
Pulte Homes, Inc.
Supplemental Information
($000's omitted)
(Unaudited)
                               Three Months Ended
                               September 30,
                               2009
Merger-related costs
Severance                      $ 31,788
Restructuring charges          12,578
Work in process adjustment to
Centex inventory               10,463
Transaction expenses & other
merger-related costs           31,872
Total merger-related costs     $ 86,701

SOURCE: Pulte Homes

Company Contacts 
Pulte Homes 
Investors: Jim Zeumer 
(248) 433-4502 
email: jim.zeumer@pulte.com 
or 
Media: Caryn Klebba 
(248) 433-4840 
Email: caryn.klebba@pulte.com

"Brian's appointment is an important step in our move to build a strong executive team as we position the company for long-term growth," said Russ Smyth, President and CEO of H&R Block. "Brian's breadth of legal experience, his business acumen and his leadership skills make him a valuable addition to H&R Block."

A native of Texas, Woram earned a B.S. in mechanical engineering from Texas A&M University and his law degree (J.D.) from the University of Texas.

About H&R Block

H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, online through H&R Block Online, through its TaxCut(R) software and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.

For Further Information

Media Relations:
Nancy Mays
816.854.4537
Email Contact

Investor Relations:
Derek Drysdale
816.854.4513
Email Contact

SOURCE: H & R Block

http://www2.marketwire.com/mw/emailprcntct?id=7A822BF02F8B8FB1
http://www2.marketwire.com/mw/emailprcntct?id=335BA3FD4E6D0753

The terms and conditions of the tender offers are described in the Offer to Purchase, dated August 11, 2009, (the "Offer to Purchase") and the related Letter of Transmittal. The tender offers expired at 12:00 midnight, New York City time, on the Expiration Date.

As described in the Offer to Purchase, because the aggregate principal amount of notes within Acceptance Priority Level 3 tendered in the Maximum Tender Offer (as set forth in the table above) exceeded the $1,500,000,000 tender cap remaining following the purchase of notes pursuant to the Any and All Offer and of notes tendered within the numerically lower Acceptance Priority Levels in the Maximum Tender Offer, Pulte will accept such validly tendered notes in Acceptance Priority Level 3, in the aggregate, on a prorated basis (rounded downward such that Holders receive notes in integral multiples of $1,000) with a proration factor of 26.963%. Notes of Acceptance Priority Level 4 and those Notes not accepted due to proration will be promptly credited to each applicable holder's account through The Depository Trust Company.

Pulte previously announced that it had elected to exercise its option as described in the Offer to Purchase, to accept for payment all notes validly tendered in the Any and All Offer as of 5:00 p.m., New York City time, on August 24, 2009 (the "Early Tender Date"). Payment for such notes was made on August 25, 2009. The notes that were tendered in the Any and All Offer after the Early Tender Date and prior to the Expiration Date and the notes that were tendered and accepted (subject to proration as described above) in the Maximum Tender Offer prior to the Expiration Date will, subject to the terms and conditions of the tender offers, be accepted, and payment for all validly tendered notes not earlier accepted, will be made on September 9, 2009. Subject to the terms and the conditions of the tender offers, the notes will be accepted for payment by Pulte by the giving of notice to D. F. King & Co., Inc., the depositary for the tender offers.

Pulte retained BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and UBS Securities LLC to act as lead dealer managers, Barclays Capital Inc. and Wells Fargo Securities to act as dealer managers and Calyon Securities (USA) Inc., Comerica Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc. and SunTrust Robinson Humphrey, Inc. to act as co-dealer managers in connection with the offers. D. F. King & Co., Inc. was retained to serve as the depositary and the information agent for the tender offers.

Pulte's obligations to accept any notes tendered and to pay the applicable consideration for them are set forth solely in the Offer to Purchase and the related Letter of Transmittal. This press release is for informational purposes only and is not an offer to purchase or a solicitation of acceptance of the tender offers. Subject to applicable law, Pulte may amend, extend or, subject to certain conditions, terminate the tender offers.

Certain statements in this release constitute "forward-looking statements." Such forward-looking statements involve known risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) adverse national and regional economic and business conditions, including further deterioration in the unemployment rate and the current downturn in the homebuilding industry; (2) interest rate changes and the availability of mortgage financing; (3) continued volatility and potential further deterioration in the debt and equity markets, which have adversely impacted the banking and mortgage finance industries, resulting in tightening of credit; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of insurance covering risks associated with the Company's business; (7) shortages and the cost of labor; (8) weather-related slowdowns; (9) slow growth initiatives and/or local building moratoria; (10) governmental regulation and the interpretation of tax, labor and environmental laws; (11) changes in consumer confidence and preferences; (12) required accounting changes; (13) terrorist acts and other acts of war; (14) the potential loss of tax benefits if we have an "ownership change" under IRC Section 382; and (15) other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See the Company's Annual Report on Form 10-K and Annual Report to Shareholders for the year ended December 31, 2008 and other public filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to Pulte's business. Pulte undertakes no duty to update any forward-looking statement whether as a result of new information, future events or changes in Pulte's expectations.

About Pulte Homes

Pulte Homes, Inc., based in Bloomfield Hills, Mich., is America's largest home building company with operations in 29 states and the District of Columbia. The Company has an unmatched capacity to meet the needs of all buyer segments through its brand portfolio that includes Pulte Homes, Centex and Del Webb, as well as its regional brands of DiVosta Homes (Florida) and Fox & Jacobs (Texas). Pulte Mortgage LLC is a nationwide lender offering Pulte customers a wide variety of loan products and superior service.

Websites: www.pulteinc.com; www.pulte.com; www.centex.com; www.delwebb.com; www.divosta.com; www.foxandjacobs.com

SOURCE: Pulte Homes, Inc.

Investors: Jim Zeumer 
(248) 433-4502 
email: jim.zeumer@pulte.com

Overall customer satisfaction improves for a second consecutive year, averaging 811 on a 1,000-point scale in 2009, and up 32 points from 779 in 2008. Markets with the highest levels of overall satisfaction in 2009 include Orange/San Diego, Calif.; Sacramento, Calif.; Phoenix, Ariz.; Inland Empire, Calif.; and Tampa, Fla.. In addition, overall satisfaction has increased in 22 of the 23 individual markets that were also surveyed in 2008.

New-home quality has also increased notably to an average of 825 index points in 2009 from 799 in 2008. The rate of customer-reported problems has decreased in 2009 to an average of 9.55 problems per home, from 11.51 problems per home in 2008. Problem rates have declined in each of the 23 markets that were also included in the study in 2008. Overall, the most commonly reported quality problems include issues with landscaping, heating and air conditioning problems and kitchen cabinet quality and finish.

"Fierce competition among home builders has led to a market where only the strongest companies have survived," said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. "This is great news for new-home buyers-particularly first-time buyers-since builders are offering unprecedented high levels of quality, value and service at relatively low prices."

The New-Home Builder Customer Satisfaction Study, now in its 13th year, includes satisfaction rankings for builders in 24 markets. Nine factors drive overall customer satisfaction with home builders: workmanship/materials; builder's warranty/customer service staff; price/value; builder's sales staff; construction manager; home readiness; recreational facilities provided by the builder; builder's design center; and location.

The study finds that the importance of the workmanship and materials factor has increased notably from 2008. Meanwhile, the builder's sales staff, construction manager and home readiness factors have declined in importance.

"Compared with past years, fewer home buyers are spending large amounts of time working with construction managers or are concerned about home readiness, since many builders have large inventories of homes that are already complete at the point of purchase," said Sonkin. "For home owners, this can make for a smoother, turnkey ownership experience, with fewer unanticipated delays."

The proportion of homes delivered both completely finished and on time has increased notably to 76 percent in 2009 from 70 percent in 2008.

Overall Customer Satisfaction Rankings

Pulte brands (which include Del Webb, DiVosta Homes and Pulte Homes)(1) rank highest in customer satisfaction among new-home builders in 12 markets. Pulte Homes, Inc. is headquartered in Bloomfield Hills, Mich. Besides the Pulte brands, other builders with highest rankings in their respective markets include (in alphabetical order): Ashton Woods (which ties with Village Builders in the Houston market and is headquartered in Roswell, Ga.); Brookfield Homes (Fairfax, Va.); Centex Homes (Bloomfield Hills, Mich.); Darling Homes (Frisco, Texas); David Weekley Homes (which ties with Pulte Homes in the Austin market and is headquartered in Houston, Texas); K. Hovnanian (Red Bank, N.J.); Lennar (Miami, Fla.); M/I Homes (Columbus, Ohio); Pardee Homes (Los Angeles, Calif.); Shea Homes (Walnut, Calif.); Standard Pacific Homes (Irvine, Calif.); and Village Builders (which ties with Ashton Woods in the Houston market and is headquartered in Houston, Texas.)

For more information on New-Home Builder Customer Satisfaction Study rankings by market, please click here.

2009 New-Home Quality Study Rankings

The New-Home Quality Study, now in its third year, measures the occurrence and impact of construction problems experienced by new-home owners in 24 markets. The study utilizes an index that takes into account the number of problems that occur, the severity of problems and size of the home, and covers 41 different problem categories for the following areas: bathroom; drywall; electrical/appliances; flooring/stairs; home exterior; interior paint; kitchen; windows/doors; and other significant problems.

Pulte brands rank highest in new-home quality in five markets. Other builders achieving highest rankings in new-home quality in their respective markets include (in alphabetical order): Ashton Woods; Brookfield Homes; Centex Homes; Classic Homes (headquartered in Colorado Springs, Colo.); Holiday Builders (Melbourne, Fla.);J. Patrick Homes (Houston, Texas); John Wieland Homes and Neighborhoods (Smyrna, Ga.); KB Home (Los Angeles, Calif); Lennar; Lifestyle Communities (Columbus, Ohio); Pardee Homes; Ryland Homes (Calabasas, Calif.); Standard Pacific Homes; Taylor Morrison Homes (Scottsdale, Ariz.); Toll Brothers (Horsham, Pa.); and Winchester Homes (Bethesda, Md.).

For more information on New-Home Quality Study rankings by market, please click here.

"Green" Home Features

Approximately 31 percent of new-home owners perceive that their home is environmentally friendly, but a majority of these owners--65 percent--say that their home builder did not identify the home as "green."

"Builders that neglect to point out environmentally friendly home features to buyers are missing out on a very important opportunity," said Sonkin. "New-home buyers are increasingly seeking out green home features and the benefits they bring in terms of energy and cost savings."

The top three reasons home owners give for building or buying a green home are: saving on power and heating costs; reducing water usage; and reducing their impact on the environment.

The 2009 U.S. New-Home Builder Customer Satisfaction Study is based on responses from 26,231 buyers of newly built single-family homes who provided feedback after living in their homes an average of four to 18 months. The study was fielded between March and July 2009. For more comprehensive builder rankings for all 24 U.S. markets, visit www.jdpower.com/homes.

    Markets Included in New-Home Builder Customer Satisfaction Study and New-
    Home Quality Study
    Atlanta, Ga.
    Austin, Texas
    Charleston, S.C.
    Charlotte, N.C.
    Chicago, Ill.
    Columbus, Ohio
    Dallas/Ft. Worth, Texas
    Denver, Colo.
    Houston, Texas
    Inland Empire, Calif.
    Jacksonville, Fla.
    Los Angeles/Ventura County/Bakersfield, Calif.
    Las Vegas, Nev.
    Northern New Jersey
    Orange County/San Diego, Calif.*
    Orlando, Fla.
    Philadelphia, Pa.
    Phoenix, Ariz.
    Sacramento, Calif.
    San Antonio, Texas
    San Francisco Bay Area, Calif.
    Tampa, Fla.
    Tucson, Ariz.
    Washington, D.C.
    *New markets added to the study in 2009.


    Top Three Builders in Overall Customer Satisfaction by Market
    Atlanta, Ga.
    Highest: Pulte Homes
    Ashton Woods
    John Wieland Homes

    Austin, Texas
    Highest: David Weekley Homes (tie)
    Pulte Homes (tie)
    Standard Pacific Homes

    Charleston, S.C.
    Highest: Centex Homes
    Ryland Homes
    Beazer Homes

    Charlotte, N.C.
    Highest: Standard Pacific Homes
    M/I Homes
    Del Webb

    Chicago, Ill.
    Highest: Pulte Homes
    Lakewood Homes
    Town & Country

    Columbus, Ohio
    Highest: M/I Homes
    Dominion
    Lifestyle Communities

    Dallas/Ft. Worth, Texas
    Highest: Darling Homes
    Drees Custom Homes
    Ashton Woods

    Denver, Colo.
    Highest: Shea Homes
    Classic Homes
    Pulte Homes

    Houston, Texas
    Highest: Ashton Woods (tie)
    Village Builders (tie)
    Highland Homes

    Inland Empire, Calif.
    Highest: Del Webb
    Shea Homes
    Standard Pacific Homes

    Jacksonville, Fla.
    Highest: Lennar
    Pulte Homes
    KB Home

    Los Angeles/Ventura County/ Bakersfield, Calif.*
    Highest: Pulte Homes
    KB Home

    Las Vegas, Nev.
    Highest: Pardee Homes
    Meritage Homes
    Del Webb

    Northern New Jersey*
    Highest: K. Hovnanian

    Orange County/San Diego, Calif.
    Highest: Brookfield Homes
    Shea Homes
    Standard Pacific Homes

    Orlando, Fla.
    Highest: Pulte Homes
    KB Home
    Ashton Woods

    Philadelphia, Pa.
    Highest: Pulte Homes
    Ryan Homes
    K. Hovnanian

    Phoenix, Ariz.
    Highest: Shea Homes
    KB Home
    Ashton Woods

    Sacramento, Calif.
    Highest: Pulte Homes
    Del Webb
    Centex Homes

    San Antonio, Texas*
    Highest: Pulte Homes
    KB Home

    San Francisco Bay Area, Calif.
    Highest: Shea Homes
    Pulte Homes
    Standard Pacific Homes

    Tampa, Fla.
    Highest: Pulte Homes
    Standard Pacific Homes
    DiVosta Homes

    Tucson, Ariz.
    Highest: Pulte Homes
    Lennar
    Richmond American

    Washington, D.C.
    Highest: Pulte Homes
    Van Metre Homes
    M/I Homes

    *No other builder in this market performs above the market average.


    Highest Ranked Builders in New-Home Quality by Market
    Atlanta, Ga.
    John Wieland Homes

    Austin, Texas
    Standard Pacific Homes

    Charleston, S.C.
    Centex Homes

    Charlotte, N.C.
    Ryland Homes

    Chicago, Ill.
    Del Webb

    Columbus, Ohio
    Lifestyle Communities

    Dallas/Ft. Worth, Texas
    Ashton Woods

    Denver, Colo.
    Classic Homes

    Houston, Texas
    J. Patrick Homes

    Inland Empire, Calif.
    Centex Homes

    Jacksonville, Fla.
    Ryland Homes

    Los Angeles/Ventura County/ Bakersfield, Calif.
    Pulte Homes

    Las Vegas, Nev.
    Pardee Homes

    Northern New Jersey
    Toll Brothers

    Orange County/San Diego, Calif.
    Brookfield Homes

    Orlando, Fla.
    Holiday Builders

    Philadelphia, Pa.
    Pulte Homes

    Phoenix, Ariz.
    KB Home

    Sacramento, Calif.
    Taylor Morrison Homes

    San Antonio, Texas
    Pulte Homes

    San Francisco Bay Area, Calif.
    Standard Pacific Homes

    Tampa, Fla.
    Pulte Homes

    Tucson, Ariz.
    Lennar

    Washington, D.C.
    Winchester Homes

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on home building and home improvement; car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.

    Media Relations Contacts:
    Jeff Perlman; Brandware Public Relations; Malibu, Calif.; (818) 317-3070;
    jperlman@brandwaregroup.com

    John Tews; J.D. Power and Associates; Troy, Mich.; (312) 248-4119;
    media.relations@jdpa.com

    Syvetril Perryman; J.D. Power and Associates; Westlake Village, Calif.;
    (805) 418-8103; media.relations@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

(1) Effective as of August 18, 2009, a merger of Pulte Homes, Inc. and Centex Corporation was approved by a majority of the shareholders of both companies. Because the fielding period for the 2009 New-Home Builder Customer Satisfaction and 2009 New-Home Quality Studies was completed prior to the date of the merger of both companies, Pulte Homes and Centex Homes are reported here as separate entities and brands.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

Paula Sonkin

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=58145

SOURCE J.D. Power and Associates

http://www.jdpower.com