The Presley Companies : NEWPORT BEACH

Nature of business: Residential homebuilder and master-planned community developer Total employees: 430 In Orange County: 350 Stock listing in The Times: On NYSE “Presly” Ticker symbol: “PDC” Friday’s stock close: $4.25 One-week change: Up $0.50 Analyst review: “Presley is not just a homebuilder, its also a developer. But that plan entails a five to 10 year development cycle, 1,800 to 2,000 acres of land on which 3,000 to 5,000 homes will be built. That ties into credit. Part of the reason that Presley is currently a $4 stock is that banks are less inclined to make long-term loans in this environment. Presley is coming up on the expiration of its agreement with its credit group, but I think its safe to assume it will be able to extend its credit line. Presley is cash flow positive. It is selling homes at a decent clip and converting its inventory at a rate sufficient to pay ongoing interest expense. I think the company will tread water, and that it will survive this slump.” --Ed Keaney, analyst Stifel Nicolaus, St. Louis Dollar amounts in millions

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs 3 qtrs 1989 1990 1991 1991 1992 Revenue $339.0 $272.7 $169.4 $102.2 $122.0 Profit $71.2 $25.5 $.123 $2.5 -$11.4

Corporate outlook: “The Presley Companies was the only major home builder to launch a successful initial public offering in 1991. Building on this accomplishment, we believe we are very well positioned for the decade of the 90s, with quality product, geographic diversity and a talented dedicated staff of professionals who have made the Presley Cos. a leader in the home building industry.” --Wade H. Cable, president/CEO RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs 1989 1990 1991 1991 52-week high N/A N/A $10.13 N/A 52-week low N/A N/A $7.00 N/A Book value per share N/A $8.15 $11.39 $13.00 Price per share N/A N/A $9.50 N/A Net profit per share N/A $1.27 $0.45 $0.20 Price-to-earnings ratio N/A N/A 1:1 N/A Avg. return on investor equity 69% 25% .07% 5%

Fiscal year ending 3 qtrs 1992 52-week high $17.38 52-week low $2.13 Book value per share $7.82 Price per share $2.26 Net profit per share ($0.62) Price-to-earnings ratio 3:1 Avg. return on investor equity N/A

* The Presley Companies sold 7 million shares in its initial public offering Oct. 18, 1991; net proceeds: $65.1 million. For more information call or write, the Presley Cos.: 19 Corporate Plaza, Newport Beach, Calif. 92660. (714) 640-6400. Source: The Presley Cos .