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TOUSA Receives Interim Court Approval of $135 Million Financing Agreement With Citigroup Global Markets

HOLLYWOOD, Fla., Jan. 31 /PRNewswire/ --

HOLLYWOOD, Fla., Jan. 31 /PRNewswire-FirstCall/ -- TOUSA, Inc. -- TOUSA, Inc. today announced that it has received interim Court approval to borrow as much as $135 million from Citigroup Global Markets Inc. to pay normal operating expenses, including employee wages, construction costs, and payments to suppliers. The financing is senior to existing debt and requires final Bankruptcy Court approval.

Judge John K. Olson of the U.S. Bankruptcy Court, Southern District of Florida (Fort Lauderdale Division) also granted the Company authority to continue customer programs, including customer warranties; pay employee wages and benefits; establish procedures to pay valid lien claims in the ordinary course of business; and to sell homes free and clear of all liens, with such liens to attach to the proceeds of the sales.

"The relief granted by the Court today will allow the Company to focus on executing its reorganization strategy and, at the same time, provide TOUSA with the liquidity and ability to continue normal operations, including building and selling homes, paying our valued suppliers, and following through on all of our commitments to our customers and business partners," Antonio B. Mon, TOUSA's Chief Executive Officer, said.

TOUSA, Inc. and certain subsidiaries filed for relief under Chapter 11 of the U.S. Bankruptcy Code in Fort Lauderdale on January 29, 2008. The case is 08-10928. For more information, please visit www.tousa.com or the Court web site at .

About TOUSA, Inc.

TOUSA, Inc. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and markets high-quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home ("empty-nesters"). It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. For more information on TOUSA, please visit our website at www.tousa.com.

This press release may contain forward-looking statements. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. This press release is qualified in its entirety by cautionary statements and risk factor disclosure contained in the Company's Securities and Exchange Commission filings, including the Company's annual report on Form 10-K for the year ended December 31, 2006, filed with the Commission on March 20, 2007, and the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and Sept. 30, 2007 filed with the Commission on May 10, 2007, August 9, 2007 and November 14, 2007, respectively.

Company Contacts: Information Hotline (866) 588-9290