MIAMI, Sept. 23 /PRNewswire-FirstCall/ --
    -- Revenues of $1.1 billion - down 53%
    -- Loss per share of $0.56 (includes a $0.53 per share charge related to
       valuation adjustments and other write-offs)
    -- Gross margin on home sales:
       -- 18.0% (excluding SFAS 144 valuation adjustments of $32.3 million) -
          up 400 basis points
       -- 14.8% (including SFAS 144 valuation adjustments) - up 1,480 basis
          points
    -- Operating margin on home sales:
       -- 2.3% (excluding SFAS 144 valuation adjustments) - up 230 basis
          points
       -- -0.9% (including SFAS 144 valuation adjustments) - up 1,310 basis
          points
    -- Selling, general and administrative expenses reduced by $148.0 million
       - down 49%
    -- Homebuilding cash of $857.1 million as of August 31, 2008
    -- No outstanding borrowings under the Company's credit facility as of
       August 31, 2008
    -- Homebuilding debt to total capital of 40.5% (net homebuilding debt to
       total capital of 30.2%)
    -- Maximum recourse indebtedness related to the Company's unconsolidated
       entities of $630.0 million - reduced by $1.1 billion, or 64%, since its
       peak at November 30, 2006
    -- Deliveries of 3,791 homes - down 50%
    -- New orders of 3,387 homes - down 42%; cancellation rate of 27%
    -- Backlog dollar value of $1.0 billion - down 53%

Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, today reported results for its third quarter ended August 31, 2008. Third quarter net loss in 2008 was $89.0 million, or $0.56 per diluted share, compared to third quarter net loss of $513.9 million, or $3.25 per diluted share, in 2007.

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, 'While we expected the housing market to remain constrained throughout the third quarter, the weakness in the market actually accelerated as a result of increased foreclosures, weakened consumer confidence and tightened mortgage lending standards. Although the Federal government has recognized that stabilizing the housing market is critical to solving the current credit crisis, the government has yet to act meaningfully to help stabilize home prices. While we were encouraged that Congress passed the July housing stimulus bill as a first step, additional government actions will be necessary to help facilitate housing market stabilization, which in turn will help stabilize the financial markets as well.'

Mr. Miller continued, 'While the housing market continues to search for a bottom, we have been making significant progress to improve our basic operations. We continued to focus on the execution of an efficient homebuilding model through the repositioning of our product to meet today's consumer demand and by aggressively reducing our construction costs. This focus resulted in our third quarter, pre-impairment gross margin percentage improvement of 400 basis points year-over-year to 18.0%. As a result of a steeper decline in revenues than we anticipated, we did not achieve a reduction in S,G&A expenses as a percentage of revenue from the second quarter. However, we did continue to make significant progress towards our goal of right-sizing our business by cutting our selling, general and administrative expenses by approximately one-half, compared to a year ago. We have taken further actions during the quarter, including consolidating divisions, which should enable us to achieve a significant improvement in our S,G&A percentage going forward.'

'We ended our third quarter with $857 million in cash and no outstanding borrowings under our credit facility, while we reduced our maximum unconsolidated joint venture recourse debt to $630 million, a decrease of 22% from the end of our second quarter.'

Mr. Miller concluded, 'As we enter the fourth quarter of 2008, we remain well positioned with a strong balance sheet and properly scaled operations to navigate the current market as a leaner and more efficient homebuilder.'

                             RESULTS OF OPERATIONS
                 THREE MONTHS ENDED AUGUST 31, 2008 COMPARED TO
                       THREE MONTHS ENDED AUGUST 31, 2007

Homebuilding

Revenues from home sales decreased 54% in the third quarter of 2008 to $995.7 million from $2.2 billion in 2007. Revenues were lower primarily due to a 49% decrease in the number of home deliveries and a 9% decrease in the average sales price of homes delivered in 2008. New home deliveries, excluding unconsolidated entities, decreased to 3,694 homes in the third quarter of 2008 from 7,266 homes last year. In the third quarter of 2008, new home deliveries were lower in each of the Company's homebuilding segments and Homebuilding Other, compared to 2007. The average sales price of homes delivered decreased to $270,000 in the third quarter of 2008 from $296,000 in the same period last year, due to reduced pricing. Sales incentives offered to homebuyers were $45,900 and $46,000 per home delivered, respectively, in the third quarter of 2008 and 2007.

Gross margins on home sales excluding SFAS 144 valuation adjustments were $179.4 million, or 18.0%, in the third quarter of 2008, compared to $304.1 million, or 14.0%, in the third quarter of 2007. Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, improved compared to last year, primarily due to the Company's lower inventory basis and continued focus on repositioning its product and reducing construction costs. The largest gross margin percentage improvement was experienced in the Company's Homebuilding East segment. Gross margins on home sales were $147.1 million, or 14.8%, in the third quarter of 2008, which included $32.3 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $1.0 million, or 0.0%, in the third quarter of 2007, which included $303.1 million of SFAS 144 valuation adjustments. Gross margins on home sales excluding SFAS 144 valuation adjustments is a non-GAAP financial measure disclosed by certain of the Company's competitors and has been presented because the Company finds it useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors.

Selling, general and administrative expenses were reduced by $148.0 million, or 49%, in the third quarter of 2008, compared to the same period last year, primarily due to reductions in associate headcount, variable selling expense and fixed costs. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 15.7% in the third quarter of 2008, from 14.0% in 2007, which was due to lower revenues.

Losses on land sales totaled $28.8 million in the third quarter of 2008, which included $21.4 million of SFAS 144 valuation adjustments and $10.9 million of write-offs of deposits and pre-acquisition costs related to approximately 900 homesites under option that the Company does not intend to purchase. In the third quarter of 2007, losses on land sales totaled $344.7 million, which included $114.6 million of SFAS 144 valuation adjustments and $242.5 million of write-offs of deposits and pre-acquisition costs related to approximately 15,000 homesites that were under option.

Equity in loss from unconsolidated entities was $11.0 million in the third quarter of 2008, which included $2.9 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments, compared to equity in loss from unconsolidated entities of $127.4 million in the third quarter of 2007, which included $138.7 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.

Management fees and other expense, net, totaled $52.2 million in the third quarter of 2008, which included $40.0 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities and $5.6 million of write-offs of notes receivable, compared to management fees and other expense, net, of $10.5 million in the third quarter of 2007, which included $32.1 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities and $16.5 million of goodwill write-offs, partially offset by the recognition of $24.7 million of profit deferred at the time of the recapitalization of the LandSource joint venture.

Minority interest income (expense), net was $9.0 million in the third quarter of 2008, which included $7.9 million of minority interest income as a result of a $15.9 million SFAS 144 valuation adjustment to inventory of a 50%-owned consolidated joint venture, compared to minority interest income (expense), net of ($1.8) million in the third quarter of 2007.

Sales of land, equity in loss from unconsolidated entities, management fees and other expense, net and minority interest income (expense), net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.

Financial Services

Operating loss for the Financial Services segment was $12.9 million in the third quarter of 2008, compared to an operating loss of $5.2 million in the same period last year. The operating loss was due to a $27.2 million write-off of goodwill related to the segment's mortgage operations. This loss was partially offset by increased profitability in the mortgage operations primarily due to higher profits per loan resulting from an increase in FHA loans. There were $9.3 million in write-offs of land seller notes receivable in third quarter of 2007, compared to no write-offs of land seller notes receivable in the third quarter of 2008.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $10.7 million, or 24%, in the third quarter of 2008, compared to the same period last year.