1. Morrison Homes Analyst/Investor Presentation The Howard Hotel – London 14 April 2005

2. Morrison Homes Growth Strategy Steve Parker President Morrison Homes

3. Morrison Growth Strategy 1 n Growth markets  large  population growth  employment growth  inward migration Susan Jacobson-Kulak Division President, Phoenix

4. Morrison Growth Strategy 2 n Growth through satellite operations  reduces overhead costs  manages land and market risk  develops management n Successful track record  Jacksonville, Sarasota, Central Valley Bob Walter Senior Vice President, West

5. Morrison Growth Strategy 3 n Growth through product development  lower price points  Townhomes  low-rise condominiums Mike Storey Division President, Tampa

6. Morrison Growth Strategy 4 n Addressing underperforming businesses  sale of Atlanta assets in hand  Texas market showing improvement  Texas improvement plan well under way  a long way to go – but potential for longer term growth John Napolitan Executive Vice President

7. US economy and housing market Bruce Van Stee Chief Financial Officer

8. US economy 1st Quarter Forecast 2004 20052005 GDP Growth4.4%4.0%>3.5% Job Growth2.2M.5M2.0M Fed Funds Rate2.25%2.75%3.75% 30 Year Fixed Mortgage Rate5.75%6.0%6.5% CPI (excl. food/energy)2.2%2.4% - Consumer Confidence102.7102.4 - US market

9. Morrison position within the US market (in thousands) 20042004 Job Growth Rank Single Family Permits Rank Florida281 1 185 1 California217 2 147 3 Texas121 3 148 2 Arizona 88 4 81 5 Colorado 47 9 39 12 754 600 National Results 2,200 1,600 Morrison Markets 34.3% 37.5% US market

10. US housing market – near term n Strong first quarter demand n Inventory levels well controlled n Staged sales releases occurring in Phoenix, Orlando and Tampa as demand exceeds supply n Some moderating of price increases in markets where high price appreciation has occurred – Southern California, Las Vegas and parts of Northern California (Bay Area) n Mortgage rate increases will be offset by solid economic and job growth n Forecast for 2005 permit activity indicate a slight drop (3% to 4%) from 2004 record levels (1.6M) US market

11. US housing market – longer term n Long term industry fundamentals still very strong n New household formations projected at 1.2M annually through 2020 n Homebuilding still highly fragmented business, market share of large public builders around 23% n Well capitalized builders have advantage as land market becomes more difficult US market

12. Morrison Homes Growth Strategy 1 Growth Markets Susan Jacobson-Kulak Division President, Phoenix

13. Phoenix – the market Population3,500,000 2004 Single Family Permits60,825 % change from 200327.46% Position in US1 Job growth:2003 + 20,600 2004 + 40,800 2005 (projected)+ 46,600 Morrison closings:2004542 Growth markets

14. Phoenix - key business strengths n Strong leadership and management team n Sound Morrison business practices and disciplines n Product offering - right price points and products n Effective and stable field staffing – both construction and sales n Good geographic coverage /land position Growth markets

15. Phoenix geographic market Growth markets

16. Phoenix – sales (units) Growth markets

17. millions Phoenix PBIT & operating margin Growth markets

18. Phoenix landbank (units) Growth markets

19. Phoenix - potential for organic growth n Strong market to continue n Landbank in place to grow to 800 units in 2006 n Potential to increase growth to >1000 units by 2007 n Longer term potential for development of satellite operation in Tucson Growth markets

20. Morrison Homes Growth Strategy 2 Growth through satellite operations Bob Walter Senior Vice President, West

21. What is a satellite operation? n Profit center that is an extension of an existing Division n An organic growth strategy that leverages:  existing Division management and employee base  proven systems and procedures  architecture  sub-contractors  land sellers n Within 2 hour drive of the Division Growth through satellite operations

23. 17% 34% 31% 39% 0% $ million Sacramento and Central Valley revenue Growth through satellite operations

24. 16% 31% 0% 27% 41% $ million Sacramento and Central Valley PBIT Growth through satellite operations

25. Central Valley satellite n The Sacramento Division started the satellite operation and within 3 years turned it over to the new Central Valley Division Management Team. n The satellite initiative allowed us to enter the Central Valley market and grow the business organically by leveraging:  Sacramento Management Team’s experience and capability  proven systems and procedures  architecture  land seller relationships  sub-contractor relationships Growth through satellite operations

26. Central Valley transitions to full Division responsibility over 3 years Operations Sales Construction Finance Purchasing Warranty Sacramento Including Central Valley Operations Sales Construction Finance Purchasing Warranty Sacramento Central Valley Supported by Sacramento Operations Sales Construction Finance Purchasing Warranty Operations Sales Construction Finance Purchasing Warranty Operations Sales Construction Finance Purchasing Warranty SacramentoCentral Valley 2000/20012002/20032004 Growth through satellite operations

27. Key findings n We can use this strategy to continue to grow into new markets n This satellite strategy also provides a development opportunity for our future Division leaders Growth through satellite operations

28. 5,3812004 4,4792003 3,6422002 Single Family Permits FRESNO 4,8902004 4,2292003 3,7762002 Single Family Permits RENO Growth through satellite operations What’s next?

29. Morrison Homes Growth Strategy 3 Growth through product development Mike Storey Division President, Tampa

30. n To meet market demand n To stay a step ahead of the competition n To maintain product in largest price segments  Orlando low $200’s  Tampa high $100’s n Opportunity to move into prime inner-city and infill locations n Higher density products offsets higher land costs n More controllable business Why Townhomes? Growth through product development

31. Resulting benefits n Greystone  130 sales in 13 months, 10 per month  all sales through lottery  price increase with every building release  over $40,000 since opening  average sale price now over $250,000  current sales at 40% gross margin  over 150 closings projected for 2005 Growth through product development

32. Resulting benefits n Alexandria Place  40 sales in 7 months, 6 per month  sales through lottery system  price increase with every building release  over $30,000 since opening  average sale price now over $170,000  current sales at 32% gross margin  over 70 closings projected for 2005 Growth through product development

33. Resulting benefits n Townhomes exceed expectations in all financial and performance measurements n True market demand exceeds actual absorptions and has been managed through  controlled monthly releases,and  sales holds, as necessary n Improved health and safety conformance n Improved production and construction staging efficiency Growth through product development

34. Going forward n Townhomes  Orlando Division  12 future Townhome communities planned  Tampa Division  5 future Townhome communities planned  several others under negotiation  future growth into other Morrison Divisions Growth through product development

35. Going forward n Condominiums  condominium communities rapidly gaining market share in response to demand  Orlando and Tampa Divisions evaluating potential for low- rise condominiums  to maintain and expand presence in target price points  to address higher inner-city land prices  avoids legal liability associated with high rise Growth through product development

36. Why are Morrison Townhomes so successful? Growth through product development

37. n 30 foot wide (1,405-2,215 sq. ft.) n Two-car garage n Designed for the upscale homebuyer n Architecturally rich details including varied roof lines, dormers and appealing window configurations Greystone Orlando, Florida Growth through product development

38. Greystone Orlando, Florida Growth through product development

39. High quality amenities add to the value of inner market location Growth through product development

40. Alexandria Place Tampa, Florida n 20 foot wide (1,527-1,790 sq. ft.) n One-car garage n Designed for first time buyers n Smaller designs do not sacrifice architectural appeal Growth through product development

41. Why Morrison Townhomes? n Buyers do not sacrifice design quality of a single family home n Buyers gain  value  a desirable location and  a carefree lifestyle Growth through product development

42. Morrison Homes Growth Strategy 4 Addressing underperforming businesses John Napolitan Executive Vice President

43. Austin – the market Population1,400,000 2004 Single Family Permits12,600 % change from 2003+12% Position in US24 Job growth: 2003 -6,100 2004 4,500 2005 (projected)17,000 Morrison closings:2004 228 Addressing underperforming businesses

44. Austin - key improvement areas n Leadership and management n Expansion to lower price points n Re-position from ‘semi-custom’ builder n Sales staffing and sales execution n Install business processes for high production Addressing underperforming businesses

45. Austin Division YTD 2005 Results Change from 2004 Sales +83% Closings +43% Sales Proceeding +102% Addressing underperforming businesses

46. Houston – the market Population4,600,000 2004 Single Family Permits42,500 % change from 2003+17% Position in US5 Job growth:2003 -16,300 2004 17,300 2005(projected) 43,000 Morrison closings:2004 303 Addressing underperforming businesses

47. Houston - key improvement areas n Leadership and management n Expansion to lower price points n Expand geographic coverage from northwest segment n Update and rationalize product offerings n Sales staffing and sales execution n Re-build a number of key business processes Addressing underperforming businesses

48. Houston Division YTD 2005 Results Change from 2004 Sales Flat Closings +80% Sales Proceeding Flat Addressing underperforming businesses

49. Dallas / Ft. Worth – the market Population6,000,000 2004 Single Family Permits44,000 % change from 2003+10% Position in US4 Job growth:2003 -28,500 2004 12,400 2005(projected)57,000 Morrison closings:2004 127 Addressing underperforming businesses

50. Dallas - key improvement areas n Leadership and management n Install proven Morrison business practices and disciplines n Expansion to lower price points n Update and rationalize product offerings n Sales staffing and sales execution n Drive frontline margin improvement Addressing underperforming businesses

51. Dallas Division YTD 2005 Results Change from 2004 Sales+73% Closings+76% Sales Proceeding+120% Addressing underperforming businesses

52. Texas markets - summary n Employment now positive in all 3 markets n Almost 100,000 permits in 2004 n Significant potential for Morrison profit growth  leverage from current under performance  longer term unit volume growth Addressing underperforming businesses

53. Texas markets - summary n Significant changes have been made in the past 9 months  we are seeing first signs of progress n Austin will reach performing status this year  further potential for volume and margin growth n Houston and, especially Dallas will take more time  must take time to get fundamentals right n Potential for substantial growth in all 3 markets n Meanwhile, maintain cautious approach to land purchases Addressing underperforming businesses

54. Morrison Homes Growth Strategy Summary Steve Parker President Morrison Homes

55. Morrison Growth Strategy - summary n Growth plan in place n Underperforming businesses being addressed n Strong landbank n 5 year growth  operating profits 37% pa n 2005 has started very strongly Morrison growth strategy

56. Landbank Land in place to support strong growth Morrison growth strategy 20042003200220012000 18,892Lots owned / under option15,30411,79610,1608,330 2,687Lots controlled1,6631,6432,0751,640 21,579Total landbank16,96713,43912,2359,970 282Land spend $m203173132119

57. Morrison Growth Strategy - summary n Growth plan in place n Underperforming businesses being addressed n Strong landbank n 5 year growth  operating profits 37% pa n 2005 has started very strongly Morrison growth strategy

58. Morrison Homes Analyst/Investor Presentation The Howard Hotel – London 14 April 2005