08/2005    Transeastern Announcement

Arthur Falcone, Chief Operating Officer of Falcone Group, LLC, is proud to announce that Transeastern Properties, Inc., which is one of many entities owned by Falcone Group, has entered into a definitive joint venture agreement with Technical Olympic USA, Inc. (NYSE: TOA) to acquire the homebuilding operations and assets of Transeastern Properties, Inc. According to JMP Securities, who represented Transeastern in the sale, this transaction is the largest private homebuilder acquisition in the industry's history. The transaction will close in the third quarter of 2005 subject to satisfaction of certain conditions precedent. TOUSA Homes will be the managing member of the joint venture. The joint venture will own and operate the homebuilding assets and business being acquired and has secured commitments for its non-recourse financing requirements. Substantially, all of Transeastern's current associates will continue to be employed either by TOUSA or the joint venture. "We are excited about combining the resources of two of the most powerful brands in the Florida market. I am pleased that our associates will be teaming up with TOUSA, sharing best practices and other resources, and contributing to the future success of the joint venture and TOUSA" said Mr. Falcone. Through his role as an investor in the joint venture and with The Falcone Group, Mr. Falcone is expected to acquire land for future use both by the joint venture and by TOUSA. The joint venture will continue to purchase land from Falcon Land and Development and provide our investors with investment opportunities. Transeastern builds a diverse group of products including affordable, move-up, luxury, and active-adult homes. Transeastern was the nation's 37th largest homebuilder in 2004, delivering 2,385 homes and generating $466 million in revenue, according to Builder Magazine. As of March 31, 2005, Transeastern owned or controlled approximately 22,000 home-sites throughout all major Florida markets. Technical Olympic USA, Inc. ("TOUSA") is a leading homebuilder in the United States, operating in 16 metropolitan markets located in four major geographic regions: Florida, the Mid-Atlantic, Texas and the West. TOUSA designs, builds, and markets high-quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers. It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. Falcone Group's entities, such as Falcon Commercial Development, Falcon Land & Development, Falcon Residential, Falcon Funding, and Falcon Construction, are not part of the joint venture transaction and will continue to operate as they have previously.