Prime Homebuilders is pleased to announce the success of Villa Portofino East’s Grand Opening. 60 Homes were sold on January 28, 2006, evident that Prime Homebuilders offers luxury and style at affordable prices.

In spite of today’s media skepticism, homebuyers realize that it is all matter of simple economics, demand vs. supply, and the pure fact tis hat home appreciation is inevitable in the long run.

On the demand side:

1. Population growth has been outstripping and will outstrip the market’s ability to meet demand. Household formations are expected to increase to 129MM by 2020. Household formation coupled with replacements and second homes per year will yield an annual demand of 1.8MM-2MM new homes, in contrast with the 2005 record of 1.282 million.
2. Immigrants are helping to fuel growth, in first-time homebuyer markets.
   Florida ranks as top growth state gaining 404,000 people from July 2004-July 2005 according to a new U.S. Census report – making Florida the fastest-growing state ahead of Texas and California in pure numbers.

On the Supply side several factors are and will be constraining the supply of new homes:

1. Increasing levels of “anti-sprawl” regulation have limited available land, is slowing the development process, and increasing expenses.
2. Continued Impact fees increases by the local government.
3. Compulsory inclusionary zoning to build affordable housing is now the responsibility of the Developer.
4. Inflation is eroding the affordability of homes.
5. Public builders are more disciplined and private builders are capital-constrained, resulting in much less spec building.

Prime Homebuilders offers superior quality, outstanding customer service and luxury living at an affordable price. Our communities have been awarded 104 “BEST Awards” in the past four years by the Builders Association of South Florida, including recognition for architecture, design, and quality. In addition to JD Powers naming Prime Homebuilders as one of the Best in the United States, we presently rank among the 100 top Builders in the United States.

For more information on our communities, visit www.primehomebuilders.com or call us at (305) 230-5555

Fred Abbo
President Chairman