Tarragon Corporation Receives NASDAQ Deficiency Notice

  
    
  
  
    
      Tarragon Corporation today announced that it received a deficiency 
      notice from The NASDAQ Stock Market indicating that the Company is not 
      in compliance with Marketplace Rule 4450(a)(5) because the minimum bid 
      price of the Company’s common stock has fallen 
      below $1.00 per share for 30 consecutive business days. This 
      notification has no immediate effect on the NASDAQ listing or trading of 
      the Company’s common stock.
    
    
      In accordance with the Marketplace Rules, the Company will have 180 
      calendar days, or until March 25, 2009, to regain compliance. If at any 
      time before March 25, 2009, the bid price of the Company’s 
      common stock closes at $1.00 per share or more for a minimum of 10 
      consecutive business days, NASDAQ will notify the Company that it has 
      achieved compliance with NASDAQ’s minimum bid 
      price requirements. If the Company does not regain compliance by March 
      25, 2009, NASDAQ will notify the Company that its common stock will be 
      delisted from the NASDAQ Global Select Market, unless the Company 
      requests a hearing before a NASDAQ Listing Qualifications Panel. 
      Alternatively, NASDAQ may permit the Company to transfer its common 
      stock to The NASDAQ Capital Market if it satisfies the requirements for 
      initial inclusion set forth in Marketplace Rule 4310(c), except for the 
      minimum bid price requirement. If its application for transfer is 
      approved, the Company would have an additional 180 calendar days to 
      comply with the minimum bid price requirement in order to remain on The 
      NASDAQ Capital Market.
    
    
      About Tarragon Corporation
    
    
      Tarragon Corporation is a leading developer of multifamily housing for 
      rent and for sale. Tarragon’s operations are 
      concentrated in the Northeast, Florida, Texas and Tennessee. To learn 
      more about Tarragon Corporation, visit: www.tarragoncorp.com.
    
    
      TARR – G