The Woodlands Remains Best-Selling Community in Texas With 1,515 New Homes Sold in 2005

Demand for Homes in Carlton Woods Creekside, East Shore Helps Drive Sales

THE WOODLANDS, TX – (February 20, 2006) – Sales of new homes and lots in The Woodlands in 2005 totaled 1,515, ranking the year among the top three in the community’s 31-year history and making The Woodlands the #1 best-selling master-planned community in Texas for the 17 th year in a row, and sixth in the nation*, according to Tim Welbes, president of The Woodlands Development Company.

Record-breaking months included July, in which 187 new homes were sold, and September, when 153 homes sold. The year ended on a high note with 126 homes sold in December, the highest number ever for that month, exceeding the previous record of 97 from 2000 by 30 percent.

"Clearly, The Woodlands' vision of planned growth integrating nature with day-to-day life, work and play continues to have a broad appeal," said Welbes.

Sales in the gated community of Carlton Woods and its 500-acre expansion Carlton Woods Creekside helped drive sales, with approximately 107 lots sold compared with 78 in 2004, an increase of more than one-third. The total dollar volume sold rose 13 percent, to $30.7 million from $27.0 million. More than 50 of those homesites were sold in Carlton Woods Creekside, located in the Village of Creekside Park, as construction began on new homes.

* Source for #1 in Texas ranking is American Metrostudy. Source for #6 in US ranking is Robert Charles Lesser.

"We expect the new Tom Fazio Championship Golf Course, which opened in October 2005, to make Carlton Woods Creekside even more appealing going forward," Welbes said. "Next on the agenda is the construction of a new clubhouse at Carlton Woods Creekside, which will begin this spring and is expected to be completed in the summer of 2007."

About two-thirds of the property available around the Fazio course has been purchased, with more lots in the area to be released this spring. In addition, 95 percent of the property available around the Jack Nicklaus Golf Course in Carlton Woods has been purchased, with only 14 lots remaining.

Also, a total of 242 new townhomes and condominiums were sold in The Woodlands during 2005, approximately a 50 percent increase over the 161 sold in 2004.

Traffic numbers at The Woodlands Homefinder Center, which provides information for prospective homebuyers, rose dramatically, showing a 20 percent increase. Approximately 8,500 potential homebuyers visited the Homefinder Center, compared with about 7,100 people in 2004.

"Interest in The Woodlands continues to grow as new homes and communities offer prospective residents more options," said Welbes. "In 2006, we expect developments such as East Shore and the Terramont area in the Village of Sterling Ridge to push demand up even further."

East Shore is a brand-new community spanning 260 acres on the eastern edge of 200-acre Lake Woodlands. Planned and designed as the “Garden District” of The Woodlands Town Center, the enclave is in close proximity to shopping, dining and entertainment along The Woodlands Waterway®. East Shore will emphasize classic American architectural styles with tree-lined boulevards, alleys, garden parks, ornamental lighting and a pedestrian-friendly ambiance. The community will be developed in phases, with residences priced from the $300s well into the millions. Thirty-four lots were sold in East Shore in 2005.

The best-selling homebuilders in The Woodlands included: Lennar, with 408 homes; Village Builders, with 303 homes; D.R. Horton, with 237 homes; and David Weekley Homes, with 132 homes. In addition to these and other established homebuilders, three new builders began programs in The Woodlands in 2005 – Chesmar, Wilshire Homes and Huntington Homes.

"The Woodlands is very fortunate to have such a wide variety of experienced,

reputable homebuilders," said Welbes. "Homebuyers can choose from many different styles, sizes and price ranges to find the ideal home for their needs.”

The Woodlands has 54 homebuilders, 208 floorplans and 235 homes in inventory. New homes in The Woodlands are priced from the $100s to more than $3 million.

The Woodlands is a 28,000-acre master-planned community located 27 miles north of downtown Houston. It is a project of The Woodlands Development Company, a limited partnership of Morgan Stanley and General Growth Properties, Inc.