Homex Fourth Quarter and Full Year 2007 Results

Homex Reports Solid Fourth Quarter and Full Year 2007 Results Exceeding the Higher Range of Yearly Guidance.

CULIACAN, Mexico, Feb. 26 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. ("Homex" or "the Company") [NYSE: HXM, BMV: HOMEX] today announced financial results for the fourth quarter and full year ended December 31, 2007(1).

Highlights
- Total revenues in the 2007 fourth quarter increased 22.0% to
Ps.5.5 billion (US$506 million) from Ps.4.5 billion (US$414 million) in
the year-ago period. For the full year 2007, revenues rose 20.3% to
Ps.16.1 billion (US$1.5 billion), which falls in the top range of the
Company's annual guidance for the year.
- Earnings before interest, taxes, depreciation and amortization (EBITDA)
during the recent quarter was Ps.1.4 billion (US$125 million), a 29.7%
increase from the Ps.1.1 billion (US$96 million) reported in the fourth
quarter of 2006. For the full year, EBITDA grew 27.6%.
- EBITDA margin increased 146 basis points to 24.7% in the fourth quarter
of 2007 from 23.2% in the fourth quarter of 2006. For the year, EBITDA
margin was 25.1%, an increase of 143 basis points from 23.6% in 2006.
Adjusted for tax recoveries, EBITDA margin for the fourth quarter
remained stable at 23.3%; for the year EBITDA margin increased to 23.6%.
- Net income increased 149.4% in the fourth quarter of 2007 to Ps.734
million (US$67 million) from Ps.294 million (US$27 million) in the
fourth quarter of 2006. For the year, net income increased 57.7% to Ps.
2.2 billion (US$201 million) from 1.4 billion (US$128 million) in 2006.
Net income adjusted for tax recoveries increased 45.6% to Ps.2.0 billion
(US$186 million) for the year.
- In the fourth quarter, total homes sold increased 18.4%. Increased
availability of financing from all sources, particularly INFONAVIT,
contributed to the higher volume of sales of affordable entry-level
homes, which rose 19.5% during the quarter. Total volume for the year
rose 17.1%.

(1) Unless otherwise noted, all monetary figures are in Mexican pesos and
restated as of December 31, 2007 in accordance with Mexican Financial
Reporting Standards, reffered to as MFRS. The symbols "Ps." and "$"refer
to Mexican pesos and "US$" refers to U.S. dollars. U.S. dollar figures are
presented only for the convenience of the reader and estimated using an
exchange rate Ps.10.90 per US$1.00 The fourth quarter and full year 2007
financial information is unaudited and is subject to adjustment.

"Our strong 2007 financial and operating results reflect Homex's expanding leadership in the homebuilding industry," said Gerardo de Nicolas, Chief Executive Officer of Homex. "During the year, we continued our expansion strategy in attractive markets in Mexico, invested in new construction technologies and addressed new market opportunities that leverage the positive industry trends and high-growth potential in new markets within Mexico. The Company not only delivered on its annual guidance but remains well positioned and committed to outpace our industry in the rate of revenue growth by maximizing our advanced information technology systems and continuing to execute our proven and replicable business model."

FINANCIAL AND OPERATING HIGHLIGHTS
Thousands of constant pesos as of
December 31, 2007,
unless otherwise indicated
TWELVE MONTHS
4Q'07 4Q'06 % Chg. 2007 2006 % Chg.
Volume (Homes) 16,393 13,851 18.4% 51,672 44,132 17.1%
Revenues $5,516,495 $4,521,505 22.0% $16,166,084 $13,439,519 20.3%
Gross
profit $1,832,387 $1,414,297 29.6% $5,269,573 $4,248,514 24.0%
Operating
income $1,191,314 $892,397 33.5% $3,513,445 $2,889,368 21.6%
Net Interest
Expense $147,372 $215,618 -31.7% $447,683 $565,787 -20.9%
Net Income $734,012 $294,258 149.4% 2,193,511 $1,391,281 57.7%
EBITDA (a) $1,362,098 $1,050,591 29.7% $4,050,369 $3,174,837 27.6%
Gross Margin 33.2% 31.3% 32.6% 31.6%
Operating Margin 21.6% 19.7% 21.7% 21.5%
EBITDA Margin 24.7% 23.2% 25.1% 23.6%
Earnings per
share 2.19 0.88 6.53 4.14
Earnings per ADR
presented in
US (b) 1.20 0.48 3.59 2.28
Weighted avg.
shares
outstanding (MM) 335.9 335.9 335.9 335.9
Accounts receivable
(as a % of sales) 46.5% 42.1%
Accounts receivable
(days) period-end 168 151
Inventory turnover
(days) period-end 378 368
Inventory (w/o land)
turnover (days)
period-end 68 80

(a) EBITDA is defined as net income plus depreciation and amortization,
net comprehensive financing cost, income tax expense and employee
statutory profit sharing expense. Please see Financial Results / EBITDA
that includes a table that sets forth a reconciliation of net income to
EBITDA for the fourth quarter 2007 and 2006.
(b) US$ values estimated using an exchange rate Ps.10.90 per US$1.00.
Common share/ADR ratio: 6:1

Operating Results

Homex operated in 33 cities and 21 states across Mexico as of December 31, 2007.

Sales Volumes. During the quarter, sales volume totaled 16,393 homes, of which affordable entry-level volumes accounted for 14,413 homes, or 87.9% of the total sales volume. Increased availability of financing from all sources, particularly INFONAVIT, contributed to the higher volume of sales of affordable entry-level homes. Middle-income volume was 1,980 homes, or 12.1% of total sales volume.

VOLUME

4Q'07 4Q'06 Change 2007 FY 2006 FY Change
4Q07/4Q06 07/06

Affordable-entry 14,413 12,065 19.5% 46,683 39,940 16.9%
Middle income 1,980 1,786 10.8% 4,989 4,192 19.0%
Total volume 16,393 13,851 18.4% 51,672 44,132 17.1%

For the year 2007, sales volume totaled 51,672 homes, a 17.1% increase from the 44,132 units sold during 2006. Affordable entry-level volumes increased by 16.9% in 2007, or 90.3% of total sales volume. Middle-income volume increased 19.0% compared to 2006 levels.

The average price during the fourth quarter for all homes sold was Ps.335 thousand, a 3.8% increase compared to the fourth quarter of 2006. The result was in part driven by an improved product offering within the middle-income segment that resulted in a 6.6% average price increase and by a 4.5% increase in the average price for affordable-entry level homes mainly driven by a higher focus in the upper segments of the affordable-entry level. For the year 2007, average price for all homes sold was Ps.313 thousand, a 2.7% increase from 2006, mainly driven from the 7.1% increase in the average price of our middle-income sold units.

AVERAGE PRICE PRICE RANGE BY SEGMENT*
Thousands of constant pesos
as of December 31, 2007
4Q'07 4Q'06 Change 2007 2006 Change Low High
4Q07/ FY FY 07/06
4Q06
Affordable-entry $272 $260 4.5% $264 $260 1.9% $185 $600
Middle income $797 $747 6.6% $736 $687 7.1% $601 $2,100
Average price
for all homes $335 $323 3.8% $313 $305 2.7%
Compound average
price for all
homes $423 $405 4.2% $372 $352 5.7%

* The Company categorized its products sold during the quarter according to the price ranges presented above.

Mortgage Financing. As of December 31, 2007, the Company's customers obtained mortgages from the Mexican Workers' Housing Fund (INFONAVIT), the three largest Sofoles, five commercial banks and FOVISSSTE. During the fourth quarter of 2007, INFONAVIT represented 81.5% of the mortgages granted to Homex's customers. During the twelve-month period ended December 31, 2007, much of the Company's affordable entry-level customers obtained mortgages provided by INFONAVIT, which represented 78.7% of the total mortgages granted to Homex customers during the year.

MORTGAGE FINANCING BY SEGMENT
Number of Mortgages
% of % of
Financing Source 4Q'07 Total 4Q'06 Total
INFONAVIT 13,360 81.5% 9,651 75.6%
SHF & Banks 1,951 11.9% 1,976 15.5%
FOVISSSTE 1,082 6.6% 1,136 8.9%
Total 16,393 100.0% 12,763 100.0%

MORTGAGE FINANCING BY SEGMENT
Number of Mortgages Number of Mortgages
% of % of
Financing Source 2007 FY Total 2006 FY Total
INFONAVIT 40,665 78.7% 33,011 74.8%
SHF & Banks 7,236 14.0% 7,061 16.0%
FOVISSSTE 3,771 7.3% 4,060 9.2%
Total 51,672 100.0% 44,132 100.0%

Geographic Expansion. 2007 represented a historical record for the Company's expansion, during which time the Company started operations in six new cities, Coatzacoalcos, Queretaro, Cancun, Rosarito, Torreon and Ensenada, initiating 24 new expansion projects throughout the country with 38 different phases initiated on existing projects. The fourth quarter 2007 alone represented a new record as well, three out of the six new cities in which Homex started operations where opened in the period. During the fourth quarter the Company consolidated its operations in these new and existing cities and launched 15 new affordable-entry phases or expansion projects, and two new affordable-entry developments in Morelia and Mexicali. Homex continued to follow a strategy of maintaining a geographically diverse base of projects in medium-sized cities, while strengthening its presence in major metropolitan areas in Mexico.

These initiatives are preparing Homex to seize opportunities in the future. Homex is one of the leading homebuilders in Mexico's top four markets: Mexico City metropolitan area, Guadalajara, Monterrey and Tijuana and continues to have one of the leading positions in the additional 29 cities where the Company operates.

In 2008, geographic diversification will continue to be an important part of the Company's long-term growth strategy. Homex will also be building a position in the tourism market by developing communities for the second-home market in key tourist destinations within Mexico. The first stage of development involves launches in Cancun, Los Cabos, and Puerto Vallarta.

"We continue to be encouraged by the positive economic environment in the markets in which we operate," commented Alan Castellanos, Homex's Chief Financial Officer. "GDP growth in the country, according to the Central Bank of Mexico, was 3.8% in the fourth quarter of 2007, and the construction sector grew 2.6% during that period. In Mexico, there is still a structural deficit of more than two million homes -- the vast majority of which are in the affordable-entry level segment where Homex is the market leader."

Financial Results

Revenues increased 22.0% in the fourth quarter of 2007 to Ps.5,516 million from Ps.4,521 million in the same period of 2006. Total housing revenues in the fourth quarter of 2007 increased 22.9%, driven in part by higher affordable-entry level sales volume, as well as higher average prices in both segments. Affordable-entry level revenues increased significantly during the fourth quarter 2007 by 24.9%, while revenues from middle-income increased a solid 18.2%. As a percentage of total revenues, affordable-entry level increased to 71.0% in the fourth quarter of 2007. Other revenues, which are mainly attributable to the sale of pre-fabricated construction materials such as block and concrete, decreased 57.6% mainly as a result of increased internal use of existing capacity.

REVENUES BREAKDOWN

Thousands of constant pesos as of Change
December 31, 2007 4Q'07 4Q'06 07 / 06
Affordable-entry $3,918,155 $3,138,144 24.9%
Middle income $1,577,741 $1,334,807 18.2%
Total housing revenues $5,495,896 $4,472,951 22.9%
Other revenues $20,599 $48,554 -57.6%
Total revenues $5,516,495 $4,521,505 22.0%

Change
Thousands of constant pesos as of 2007 FY 2006 FY 07/06
Affordable-entry $12,342,818 $10,365,792 19.1%
Middle income $3,669,701 $2,879,092 27.5%
Total housing revenues $16,012,519 $13,244,885 20.9%
Other revenues $153,565 $194,634 -21.1%
Total revenues $16,166,084 $13,439,519 20.3%

For the full year 2007, revenues increased 20.3% to Ps.16,166 million from Ps.13,440 million in 2006. Total housing revenues in 2007 increased 20.9%, driven by higher middle-income sales volume and average prices in the segment. Middle-income represented 22.7% of total revenues in 2007 compared to 21.4% in 2006. Affordable entry-level represented 76.4% of total revenues in 2007 compared to 77.1% in 2006. In 2007, Homex reported other revenues of Ps.154 million, a 21.1% reduction compared to 2006. The reduction is mainly a result of increased internal use of existing capacity of our prefabricated construction materials such as block and concrete and consequently lower sales of ready mix concrete and concrete block during 2007 to third parties.

Gross Profit. Homex generated a gross margin of 33.2% in the fourth quarter of 2007, a significant improvement of 194 basis points, compared to 31.3% in the same period of last year. The stronger margin was mainly driven by the implementation and progressive use of aluminum moulds in some of the Company's projects, our focus on reducing land licensing and permitting costs, a better supply control derived from the progressive use of our mould technology, and lower construction materials prices driven by a higher use of concrete (as main material), as well as effective negotiations with our main suppliers. For the quarter, gross profit increased 29.6% to Ps.1,832 million from Ps.1,414 million in the same quarter of 2006.

For the twelve months ended December 31, 2007, gross profit increased 24.0% to Ps.5,270 million from Ps.4,248 million in 2006. As a percentage of total revenues, gross profit increased to 32.6% in 2007 from 31.6% in 2006.

Selling and Administrative Expenses (SG&A). The amortization of the "Casas Beta" brand in the fourth quarter of 2007 resulted in a non-cash impact on SG&A line of approximately Ps.24 million. A portion equivalent to 12 months of the "Casas Beta" brand value was amortized during the fourth quarter of 2006 when the Company registered a non-cash impact in SG&A of approximately Ps.94 million.

As a percentage of total revenues and excluding the amortization effect of the "Casas Beta" brand, selling and administrative expenses in the fourth quarter of 2007 increased to 11.2% from 9.5% in the fourth quarter of 2006. This increase in SG&A for the quarter was principally the result of expenses incurred in connection with the development of our new tourism division and the new offices and management team that will oversee the operations of this division. Additionally, the increase also reflects the costs incurred in commencing eleven new building projects in the last half of 2007, an all time record for the Company.

For the year, total SG&A increased to Ps.1,756 million in 2007 compared to Ps.1,359 million in 2006.

SELLING AND ADMINISTRATIVE EXPENSES

Thousands of constant pesos as % of % of Change
of December 31, 2007 4Q07 Total 4Q06 Total 07 / 06
Selling and administrative
expenses $616,932 11.2% $427,423 9.5% 44.3%
Beta trademark amortization 24,141 0.4% 94,477 2.1% -74.4%
TOTAL SELLING AND ADMINISTRATIVE
EXPENSES $641,073 11.6% $521,900 11.5% 22.8%

Thousands of constant pesos % of % of Change
as of December 31, 2007 FY 2007 Total FY 2006 Total 07 / 06
Selling and administrative
expenses $1,661,369 10.3% $1,264,670 9.4% 31.4%
Beta trademark amortization $94,759 0.6% $94,477 0.7% 0.3%
TOTAL SELLING AND
ADMINISTRATIVE EXPENSES $1,756,128 10.9% $1,359,147 10.1% 29.2%

Operating income in the fourth quarter of 2007 increased 33.5% to Ps.1,191 million compared to Ps.892 million in the same period of 2006. Operating income as a percentage of revenues reached 21.6% in the fourth quarter of 2007 compared to 19.7% in the same period of 2006, also affected by the non-cash amortization of a portion equivalent to 12 months of the "Casas Beta" brand value.

In 2007, operating income increased by 21.6% to Ps.3,513 million compared to Ps.2,889 million in 2006. Including the non-cash items, operating income as a percentage of revenues was 21.7% in 2007 compared to 21.5% in 2006.

Other Income (Expense). In the fourth quarter 2007, the Company registered other income of Ps.75 million compared to other expense of Ps.3 million in the fourth quarter of 2006. For the year other income increased to Ps.240 million from Ps.48 million in 2006. The fourth quarter and full year 2007 higher result was mainly driven by a partial recovery of VAT taxes during the periods.

Net comprehensive financing cost decreased to Ps.161 million in the fourth quarter of 2007 compared to Ps.349 million in the year ago period. As a percentage of revenues, net comprehensive financing cost was 2.9% in the fourth quarter of 2007 compared to 7.7% in the same quarter of 2006. The drivers of this increase included the following:

a) Net interest expense decreased to Ps.147 million in the fourth quarter of 2007 from Ps.216 million in the fourth quarter of 2006 mainly driven by an increase in interest income and a reduction in the Company's borrowing interest rates.

b) The Company's reported non-cash monetary position in the fourth quarter of 2007 was Ps.73 million compared to Ps.39 million in the fourth quarter of 2006, as a result of higher non-monetary assets.

c) Foreign exchange gain in the fourth quarter of 2007 was Ps.59 million compared to a foreign exchange loss of Ps.94 million in the fourth quarter of 2006, derived mainly from the net changes in the translation of our foreign currency-denominated debt.

The monetary position and the foreign exchange gain are both non-cash items.

For the year 2007, net comprehensive financing cost as a percentage of revenues was 2.8%, compared to 5.9% during 2006. In absolute terms, net comprehensive financing cost decreased to Ps.454 million from Ps.791 million in 2006, mainly driven by a higher foreign exchange gain derived from the net changes in the translation of our foreign currency-denominated debt and higher interest income.

Net income for the fourth quarter of 2007 increased 149.4% to Ps.734 million from the Ps.294 million reported in the same period of 2006, reflecting higher sales and operative efficiencies as well as non-cash effects to the net comprehensive financial cost.

Earnings per share for the fourth quarter were Ps.2.19, as compared to Ps.0.88 in the fourth quarter of 2006. For the year earnings per share were Ps.6.53, as compared to Ps.4.14 in 2006.

EBITDA margin improved to 24.7% in the fourth quarter of 2007 from 23.2% in the same period last year, mainly as result of higher sales and the recoveries of VAT in the period. EBITDA for the fourth quarter of 2007 rose 29.7% to Ps.1,362 million from Ps.1,051 million recorded in the fourth quarter of 2006. Without considering the VAT recoveries, EBITDA margin during the first quarter of 2007 was stable at 23.3%.

The following table sets forth a reconciliation of net income to EBITDA for the fourth quarter 2007 and 2006.

RECONCILIATION OF NET INCOME (LOSS) TO
EBITDA DERIVED FROM OUR MFRS
FINANCIAL INFORMATION
Thousands of constant pesos as
December 31, 2007 4Q07 4Q06
Net Income (loss) $734,012 $294,257
Depreciation 65,743 54,256
Beta Trademark 24,141 94,477
Other Expense 5,885 12,431
Net Comprehensive Financing Cost 161,127 348,974
Income Tax Expense 332,366 200,147
Minority Interest 38,823 46,048
EBITDA $1,362,098 $1,050,591

EBITDA margin for the year reached 25.1% in 2007 from 23.6% in 2006. EBITDA for 2007 rose to Ps.4,050 million, an increase of 27.6% from Ps.3,175 million recorded in the same period of 2006. Without considering the VAT recoveries, EBITDA margin during 2007 improved to 23.6%, in line with our annual guidance.

RECONCILIATION OF NET INCOME (LOSS)
TO EBITDA DERIVED FROM OUR MFRS FINANCIAL
INFORMATION
Thousands of constant pesos as of Accumulated
December 31, 2007 as of
Dec-07 Dec-06
Net Income (loss) $2,193,511 $1,391,281
Depreciation 196,307 130,829
Beta Trademark 94,759 94,477
Other Expense 5,885 12,431
Net Comprehensive Financing Cost 453,712 790,970
Income Tax Expense 992,692 706,571
Minority Interest 113,503 48,278
EBITDA $4,050,369 $3,174,837

Land Reserve. As of December 31, 2007, Homex's land reserve was 67.5 million square meters, which includes both the titled land and land in process of being titled. This is equivalent to 326,124 homes, of which 298,398 are focused on the affordable entry-level, 27,726 in the middle-income and higher end segment.

Homex has established land reserve policies to maintain three years of future sales of land bank on the balance sheet. In addition, Homex maintains approximately three years of additional anticipated sales in optioned land.

Liquidity. Homex's average debt maturity is 8.2 years. The Company had net debt of Ps.1,433 million as of December 31, 2007. Homex's debt to total capital ratio was 27.9% while interest coverage was 9.0x. Homex funded its cash needs for the fourth quarter of 2007, including land acquisitions, Capex, debt service and working capital requirements through a combination of cash flow from operations, working capital, credit lines and existing cash on hand. The Company has been able to grow its revenues 75% from 2005 to 2007 without changing its capital structure.

- Net debt: Ps.1,433 million
- Net debt to EBITDA ratio: 0.35x
- Debt to total capitalization ratio: 27.9%
- Interest coverage 9.0x

Free cash flow for the twelve months ended December 31, 2007, was close to neutral in the amount of negative Ps.93 million, net of resources from external financing and other land purchases and capital expenditures.

RECONCILIATION OF NET INCOME (LOSS)
TO FREE CASH FLOW DERIVED FROM OUR
MFRS INFORMATION Accumulated
Thousands of constant pesos as of as of
December 31, 2007 Dec-07 Dec-06
Net Income (loss) $2,193,511 $1,391,281
Items that did not require cash
resources (non-cash items) 1,425,982 839,522

Net resources used (generated) by
operating activities -3,086,568 -923,716
Capital Expenditures -625,760 -302,392
Free Cash Flow after land purchases
and capex -$92,835 $1,004,695

Accounts Receivable. Homex reported total receivables of 46.5% of revenues for the twelve months ended December 31, 2007, representing an increase over the 42.1% reported in the fourth quarter of 2006, calculated for the twelve months ended December 31, 2006.

The period-end days in accounts receivable, calculated as of December 31, 2007, were 168 days, compared to 151 days as of December 31, 2006. The year- over-year increase is mainly derived from the increased number of developments and new cities initiated in the period that resulted in a higher percentage of construction in progress as well as higher sales of middle-income in the period, which take longer to build and sale.

WORKING CAPITAL CYCLE 4Q'07 4Q'06
Inventory w/land days 378 368
Turnover accounts receivable days 168 151
Turnover accounts payables days 235 220
Total Working Capital Cycle 311 299

The Company reported results in line with its 2007 guidance:

2007 COMPANY GUIDANCE

Actual Results Guidance 2007
Revenues Growth 20.3% 17.0% to 20.0%
EBITDA Margin (%) 23.6%(1) 23.5% to 24.0%

(1) without considering other income

2008 Guidance: The Company reaffirmed its guidance for 2008 published in December 2007:

2008 COMPANY GUIDANCE
Guidance 2008
Revenues Growth 16.0% to 18.0%
EBITDA Margin (%) 24.0% to 25.0%

Recent Business Highlights

Homex launched a new tourism division to serve second-home market in Mexico for foreign citizens.

On February 7, 2008 Homex announced a plan to strengthen its position in the tourism market by developing communities for the second-home market in key tourist destinations within Mexico.

Homex has worked for more than one year preparing for its entry into this segment. A number of marketing, demographic and viability studies as well as direct polls to potential customers in the United States, Canada and Mexico have helped the Company build a deep understanding of the market segment and its needs.

The first stage of development involves launches of "Las Villa de Mexico" developments in Cancun, Los Cabos, and Puerto Vallarta. These private communities with a superior product and service offerings will reflect the architecture and culture of Mexico adapted to the customs and living traditions of our target markets.

Homex launched an innovative real state development, first of its kind in Mexico.

On January 16, 2008, Homex, hosted a ceremony by the principal housing officials in Mexico to inaugurate a new community called "Zona Dorada", located in the city of Culiacan in the state of Sinaloa. This affordable entry-level project is the first community to be developed under the new concept "Comunidades Homex", based on an innovative model whose main attribute is its social orientation and environmentally friendly orientation.

The first Homex community will require a total investment of approximately Ps.350 million over the next 1.5 years and will create approximately 8,000 jobs. The project will house approximately 2,500 families who will be the first Mexican family complex to participate in this innovative real estate model in Mexico.

Homex, Azteca Foundation and Culiacan's municipal government inaugurated six parks to benefit more than 10,000 people.

On November 28, 2007 Homex inaugurated six parks in the city of Culiacan, donated in conjunction with Azteca Foundation and the City's municipal government. The development of these parks will improve the quality of life for the people living in five Homex's communities.

The total investment of this project amounted to Ps.2 million, and will be distributed among the six parks located in different communities in the city of Culiacan, Sinaloa. More than 10 thousand people living in these communities will be directly benefited from recreational areas, where they can integrate as a community by participating in cultural activities and sports, and also gain from the appreciation in the value of their homes and its community.

Homex receives "CMMI level 2" Accreditation for software development from the Software Engineering Institute (SEI).

On November 5, 2007 Homex received the level 2 CMMI (Capability Maturity Model Integration) accreditation from the SEI (Software Engineering Institute) at Carnegie Mellon University. This accreditation certifies that the Homex's Information Technology (IT) department will follow specific processes to develop software fulfilling the requirements of a world-wide recognized quality model used by the software manufacturing leaders. This will have a positive impact in our operational systems, as well as on the efficiency of our processes, therefore improving all control capabilities.

About Homex

Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM, BMV: HOMEX] is a leading, vertically integrated home-development company focused on affordable entry- level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex has a leading position in the top four markets in Mexico and is the largest homebuilder in Mexico, based on the number of homes sold, revenues and net income.

For additional corporate information, please visit the Company's web site at: www.homex.com.mx

Desarrolladora Homex, S.A.B. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors can cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include economic and political conditions and government policies in Mexico or elsewhere, including changes in housing and mortgage policies, inflation rates, exchange rates, regulatory developments, customer demand and competition. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission.

Attached are the unaudited Consolidated Financial Information Data of Desarrolladora Homex, S.A.B. de C.V. for the three-month and twelve-month periods ended December 31, 2007 and 2006, the Consolidated Statement of Changes in Financial Position for the twelve-month period ended December 31, 2007 and 2006 and the Consolidated Balance Sheet of Desarrolladora Homex, S.A.B. de C.V. as of December 31, 2007 and 2006.

HOMEX FOURTH QUARTER and Full YEAR 2007 RESULTS CONFERENCE CALL

DATE: Wednesday, February 27, 2008

TIME: 9:00 AM Central Time (Mexico City)
10:00 AM Eastern Time (New York)

HOSTS: Gerardo de Nicolas, Chief Executive Officer
Alan Castellanos, Vice President of Finance and Planning and
Chief Financial Officer
Carlos J. Moctezuma, Investor Relations Officer

DIAL-IN: International: 1-719-457-2620
U.S.: 1-877-780-3381
Passcode: 7275347
Please call 10 minutes prior to start time and request the
Homex call

WEBCAST: http://www.homex.com.mx/ri/index.htm

REPLAY: 1-719-457-0820, available one hour after the call ends or via
webcast at http://www.homex.com.mx/ri/index.htm

DESARROLLADORA HOMEX CONSOLIDATED BALANCE SHEET COMPARISON OF DECEMBER 31,
2007 WITH DECEMBER 31, 2006

(Figures in thousands of
constant December 31, 2007 Change
pesos) Dec-07 Dec-06 07 / 06
ASSETS
CURRENT ASSETS
Cash and cash equivalents 2,362,924 9.7% 2,419,286 12.3% -2.3%
Accounts receivable, net 7,523,982 31.0% 5,653,871 28.8% 33.1%
Inventories 11,432,333 47.1% 9,393,025 47.9% 21.7%
Other current assets 491,735 2.0% 198,805 1.0% 147.3%
Total current
assets 21,810,974 89.8% 17,664,988 90.0% 23.5%

Property and equipment,
net 1,152,638 4.7% 669,095 3.4% 72.3%
Goodwill 731,861 3.0% 731,861 3.7% 0.0%
Other assets 594,172 2.4% 554,117 2.8% 7.2%
TOTAL 24,289,645 100.0% 19,620,061 100.0% 23.8%

LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable to financial
institutions 78,515 0.3% 91,392 0.5% -14.1%
Accounts payable 7,125,044 29.3% 5,606,393 28.6% 27.1%
Advances from customers 336,626 1.4% 302,668 1.5% 11.2%
Taxes payable 154,483 0.6% 259,379 1.3% -40.4%
Total current
liabilities 7,694,668 6,259,833 22.9%

Long-term notes payable to
financial institutions 3,717,172 15.3% 3,613,732 18.4% 2.9%
Labor Obligations 76,056 0.3% 52,275 0.3% 45.5%
DEFERRED INCOME TAXES 3,015,245 12.4% 2,101,717 10.7% 43.5%
Total liabilities 14,503,141 59.7% 12,027,557 61.3% 20.6%
STOCKHOLDERS' EQUITY
Common stock 528,011 2.2% 528,011 2.7% 0.0%
Additional paid-in capital 3,180,882 13.1% 3,280,223 16.7% -3.0%
Retained earnings 5,699,472 23.5% 3,505,961 17.9% 62.6%
Excess in restated
stockholders' equity 340,323 1.4% 347,406 1.8% -2.0%
Cumulative initial effect
of deferred income taxes -157,829 -0.6% -157,829 -0.8% 0.0%
Majority
Stockholders=B4
Equity 9,590,859 39.5% 7,503,772 38.2% 27.8%

Minority interest 195,645 0.8% 88,733 0.5% 120.5%
TOTAL
STOCKHOLDERS'
EQUITY 9,786,504 40.3% 7,592,504 38.7% 28.9%

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 24,289,645 100.0% 19,620,061 100.0% 23.8%

DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF FOURTH
QUARTER 2007 WITH FOURTH QUARTER 2006

(Figures in thousands of
constant pesos as of Change
December 31, 2007) 4Q'07 4Q'06 07 / 06
REVENUES
Affordable-entry level
revenue 3,918,155 71.0% 3,138,144 69.4% 24.9%
Middle income housing
revenue 1,577,741 28.6% 1,334,807 29.5% 18.2%
Other revenues 20,599 0.4% 48,554 1.1% -57.6%
TOTAL REVENUES 5,516,495 100.0% 4,521,505 100.0% 22.0%
COSTS
Costs 3,684,108 66.8% 3,107,208 68.7% 18.6%
TOTAL COSTS 3,684,108 66.8% 3,107,208 68.7% 18.6%

GROSS PROFIT 1,832,387 33.2% 1,414,297 31.3% 29.6%
SELLING AND ADMINISTRATIVE
EXPENSES
Selling and Administrative
Expenses 616,932 11.2% 427,423 9.5% 44.3%
Beta Trademark
Amortization 24,141 0.4% 94,477 2.1% -74.4%
TOTAL SELLING AND
ADMINISTRATIVE EXPENSES 641,073 11.6% 521,900 11.5% 22.8%

OPERATING INCOME 1,191,314 21.6% 892,397 19.7% 33.5%
OTHER INCOME AND EXPENSES 75,015 1.4% -2,970 -0.1% - NET COMPREHENSIVE FINANCING
COST
Interest expense and
commissions 183,164 3.3% 236,388 5.2% -22.5%
Interest income -35,792 -0.6% -20,770 -0.5% - Foreign exchange (gain)
loss -59,290 -1.1% 94,044 2.1% - Monetary position loss 73,045 1.3% 39,313 0.9% 85.8%
161,127 2.9% 348,974 7.7% -53.8%
INCOME BEFORE INCOME TAX AND
EMPLOYEE STATUTORY PROFIT
SHARING EXPENSE 1,105,201 20.0% 540,452 12.0% 104.5%

INCOME TAX EXPENSE 332,366 6.0% 200,147 4.4% 66.1%
NET INCOME 772,835 14.0% 340,305 7.5% 127.1%
MAJORITY INTEREST 734,012 13.3% 294,257 6.5% 149.4%
MINORITY INTEREST 38,823 0.7% 46,048 1.0% -15.7%
NET INCOME 734,012 13.3% 294,257 6.5% 149.4%
Earnings per share 2.19 0.0% 0.88 0.0% 149.4%

EBITDA 1,362,098 24.7% 1,050,591 23.2% 29.7%

DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF TWELVE
MONTHS 2007 WITH TWELVE MONTHS 2006

Figures in thousands of
constant pesos as of Change
December 31, 2007 2007 YTD 2006 YTD 07 / 06
REVENUES
Affordable-entry level
revenue 12,342,818 76.4% 10,365,792 77.1% 19.1%
Middle income housing
revenue 3,669,701 22.7% 2,879,092 21.4% 27.5%
Other revenues 153,565 0.9% 194,634 1.4% -21.1%
TOTAL REVENUES 16,166,084 100.0% 13,439,519 100.0% 20.3%
COSTS
Costs 10,896,511 67.4% 9,191,005 68.4% 18.6%
TOTAL COSTS 10,896,511 67.4% 9,191,005 68.4% 18.6%

GROSS PROFIT 5,269,573 32.6% 4,248,514 31.6% 24.0%
SELLING AND ADMINISTRATIVE
EXPENSES
Selling and
Administrative Expenses 1,661,369 10.3% 1,264,670 9.4% 31.4%
Beta Trademark
Amortization 94,759 0.6% 94,477 0.7% 0.3%
TOTAL SELLING AND
ADMINISTRATIVE EXPENSES 1,756,128 10.9% 1,359,147 10.1% 29.2%

OPERATING INCOME 3,513,445 21.7% 2,889,368 21.5% 21.6%
OTHER INCOME 239,973 1.5% 47,732 0.4% 402.7%
NET COMPREHENSIVE
FINANCING COST
Interest expense and
commissions 587,885 3.6% 674,579 5.0% -12.9%
Interest income -140,202 -0.9% -108,792 -0.8% 28.9%
Foreign exchange (gain)
loss -108,601 -0.7% 148,397 1.1% - Monetary position loss 114,630 0.7% 76,786 0.6% 49.3%
453,712 2.8% 790,970 5.9% -42.6%
INCOME BEFORE INCOME TAX
AND
EMPLOYEE STATUTORY PROFIT
SHARING EXPENSE 3,299,706 20.4% 2,146,130 16.0% 53.8%

INCOME TAX EXPENSE 992,692 6.1% 706,571 5.3% 40.5%
NET INCOME 2,307,014 14.3% 1,439,559 10.7% 60.3%
MAJORITY INTEREST 2,193,511 13.6% 1,391,281 10.4% 57.7%
MINORITY INTEREST 113,503 0.7% 48,278 0.4% 135.1%
NET INCOME 2,193,511 13.6% 1,391,281 10.4% 57.7%
Earnings per share 6.53 4.14 57.7%

EBITDA 4,050,369 25.1% 3,174,837 23.6% 27.6%

Consolidated Statement of Changes in Financial Position
For the twelve months ended December 31, 2007 and 2006
(In thousands of Mexican pesos of purchasing power of
December 31, 2007)

FY 2007 FY 2006
Net income 2,193,511 1,391,281
Non Cash items:
Depreciation 196,307 130,829
Minority Interest 113,503 48,278
Amortization of
Intangibles 100,644 114,529
Labor obligations 22,836 19,347
Deferred income
taxes 992,692 526,539
3,619,493 2,230,803
(Increase) decrease
in:
Trade accounts
receivable (2,167,181) 151,277
Inventories
(w/land) (2,039,308) (3,503,491)
Trade accounts
payable 1,518,651 2,182,439
Other A&L, net (1) (398,729) 246,060
Changes in operating
assets and
liabilities (3,086,568) (923,716)

Operating Cash Flow 532,925 1,307,087

Capex (625,760) (302,392)

Free Cash Flow (92,835) 1,004,695

Net Financing
Activities 90,563 (9,557)
Net increase
(decrease) cash and
restricted cash (2,272) 995,137

Balance at beginning 2,419,286 1,424,149

Balance at end 2,417,014 2,419,286

(1) Includes adjustment of goodwill and others.

First Call Analyst:
FCMN Contact:

Source: Desarrolladora Homex, S.A.B. de C.V.

CONTACT: Investors, investor.relations@homex.com.mx, or Carlos J.
Moctezuma, Head of Investor Relations, +011-5266-7759-5838,
cmoctezuma@homex.com.mx

Web site: http://www.homex.com.mx/

2008-02-26 20:09:48 0298978 PRNEWSWIRE