Comstock Homebuilding Companies, Inc. Reports Results for Three and Nine Months Ended September 30, 2008

Comstock Homebuilding Companies, Inc.(`Comstock” or the “Company”) released its unaudited results for the three and nine months ended September 30, 2008.

For the three months ended September 30, 2008, the Company reported a net loss of ($2.2) million or ($0.13) per share basic and diluted on total revenue of $13.1 million, compared to a net loss of ($42.5) million or ($2.63) per share basic and diluted on total revenue of $52.0 million, for the three months ended September 30, 2007. For the nine months ended September 30, 2008, the Company reported a net loss of ($12.3) million or ($0.70) per share basic and diluted on total revenue of $41.5 million, compared to a net loss of ($48.8) million or ($3.04) per share basic and diluted on total revenue of $213.0 million, for the nine months ended September 30, 2007.

During the three months ended September 30, 2008 the Company continued to execute on its long-standing debt reduction initiative. Debt outstanding at September 30, 2008 was $117.4 million; a $35.6 million reduction from June 30, 2008, a $53.8 million reduction from December 31, 2007, and an $84.2 million reduction from September 30, 2007. At September 30, 2008 the actual principal amount outstanding under the Company’s senior unsecured notes was $9.0 million, as opposed to $13.0 million reflected on the Company’s balance sheet, as a result of the Company recording $4.0 million of future interest expense as additional debt pursuant to SFAS 15 (Accounting by Debtors and Creditors of Troubled Debt Restructurings) in connection with the restructuring of its $30.0 million senior unsecured notes in March 2008. The company’s adjusted net debt-to-cap ratio at September 30, 2008 (adjusted for the $4.0 million of accrued interest) was 70.2%.

Shareholder equity at September 30, 2008 was $35.2 million, or $1.97 per share, based on approximately 17.9 million shares outstanding. On a pro-forma basis, adjusted for the $4.0 million of future interest accrued to its senior unsecured debt, the Company’s book value per share was $2.19 on shareholder equity of $39.2 million.

“The market continues to be challenging with no immediate visibility to recovery,” said Christopher Clemente, Chairman and CEO. “However, real estate is a cyclical business and every down cycle is ultimately followed by a recovery. Our primary focus is completing the restructure of our loans so that we can position Comstock to survive this downturn and prosper in the coming recovery. We are hopeful that the attention being focused on the economy by the federal government will result in positive change that will stabilize house prices and ensure that affordable mortgage loans are readily available for all consumers.”