Brookfield Homes Reports Strong Growth in Earnings Per Share

Brookfield Homes Corporation (NYSE:BHS) -

   Investors, analysts and other interested parties can access 
Brookfield Homes' Supplemental Information Package on Brookfield 
Homes' website under the Investor Relations/Financial Reports section 
at www.brookfieldhomes.com. Brookfield Homes' year end investor 
conference call can be accessed by teleconference on February 2, 2006 
at 11:00 am (Eastern Time) at 1-877-667-7774, toll free in North 
America. The archived teleconference may be accessed by dialing 
1-888-509-0081, toll free in North America through February 15, 2006. 
Alternatively, the conference call can be accessed by Webcast on 
Brookfield Homes' website at www.brookfieldhomes.com.

   Brookfield Homes Corporation (NYSE:BHS) today announced strong 
financial results for the year ended December 31, 2005:

   - Net income totaled $219 million, an increase of $73 million 
from the same period in 2004. The 2005 results included $39 million 
generated from bulk land sales, and an increase in housing margins to 
30% from 22% in 2004. Earnings per share totaled $7.04, compared to 
$4.64 in 2004.

   - Housing revenue totaled $1,074 million, compared to $1,169 
million in 2004. The decrease in housing revenue is primarily due to 
216 fewer units closed during the year compared to 2004, partially 
offset by an increase in the average selling price of the company's 
homes to $679,000 from $650,000 in 2004.

   - Cash flow from operating activities was $60 million in 2005, 
and over the past two years the company generated a total of $224 
million of operating cash flow.

   - Fourth Quarter and Year Ended 2005 Financial and Operating 
Highlights

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Results of Operations         Three Months Ended         Years Ended
                                         Dec. 31             Dec. 31
(Millions, except          ------------------------------------------
 per share amounts)               2005      2004      2005      2004
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Housing revenue                  $ 440     $ 510   $ 1,074   $ 1,169
Total revenue                      559       547     1,231     1,232
Gross margin                       211       138       416       287
Contribution from bulk
 land sales to net income           34         9        39         9
Net income                         130        89       219       146
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Earnings per share - diluted
 - Excluding bulk land sales    $ 3.20    $ 2.55    $ 5.77    $ 4.36
 - Bulk land sales                1.16      0.28      1.27      0.28
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                                $ 4.36    $ 2.83    $ 7.04    $ 4.64
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   Recent Developments and Operating Highlights

   - 2005 Home and Lot Closings: In 2005, Brookfield Homes closed 
1,582 homes and 1,242 lots for a total of 2,824 home and lot 
closings. This compares to a total of 2,198 home and lot closings in 
2004. Brookfield Homes' backlog as of the end of January 2006 was 
approximately 35% of the estimated 1,625 home closings for this year. 
The company has also targeted to close approximately 1,500 bulk lot 
sales during 2006.

   - Lots Owned and Controlled: The company's lots owned or 
controlled at December 31, 2005 total 29,512, an increase of 6% from 
inventory levels at the end of 2004. Direct ownership of 12,333 lots 
provides strong visibility on Brookfield Homes' future cash flows, 
and the 17,179 lots under option are controlled with the objective of 
adding value through land entitlements.

   - A summary of lots, owned or controlled under option, by region, 
follows:

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---------------------------------------------------------------------
                San
          Francisco Southland /      San
                Bay        Los   Diego /           Washington
               Area    Angeles Riverside Sacramento D.C. Area  Total
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Geographic
 diversification
 of lots         16%        10%       28%        17%       29%   100%
2005 home
 closings
 (units)        192        223       611          -       556  1,582
2005 lot
 closings
 (units)          -         41       750          -       451  1,242
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Lot supply
 Owned        1,082      1,279     5,949        310     3,713 12,333
 Optioned     3,551      1,616     2,300      4,810     4,902 17,179
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 Total        4,633      2,895     8,249      5,120     8,615 29,512
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   - Increased Regular Dividend: On February 1, 2006, the board of 
directors approved an increase in its semi-annual dividend to $0.20 
per share. The increased dividend is payable on June 30, 2006 to 
shareholders of record on June 15, 2006.

   - Tender Offer and Share Buyback Program: The company purchased, 
at a price of $55.00 per share, 10% or 3,000,000 shares of its 
outstanding common stock through a tender offer which expired in the 
fourth quarter of 2005. In addition, under the share buyback program, 
Brookfield Homes purchased a further 707,500 shares or $34 million of 
its common stock at an average price of $47.84 during 2005.

   - 2006 Earnings Guidance - The company expects earnings per share 
to grow to between $7.60 and $8.20 in 2006, from $7.04 in 2005, an 
increase of up to 16%. Contributing factors to the positive earnings 
guidance are: the sale to other homebuilders of lots originally held 
through options, and then processed through the entitlement and/or 
development phases; and strong operating margins as a result of 
building homes on land the company entitled and developed.

   Outlook

   "We believe our markets will see a soft landing, characterized by 
a leveling off of home prices and deliveries. Having said that, we 
are well positioned to maintain our strong performance by proactively 
managing our operations through changing economic environments," 
concluded Ian Cockwell, Brookfield Homes' President and Chief 
Executive Officer.

   Brookfield Homes Corporation

   Brookfield Homes Corporation is a residential homebuilder and 
land developer, building homes and developing land in master-planned 
communities and infill locations. We design, construct and market 
single-family and multi-family homes primarily to move-up and luxury 
homebuyers. We also entitle and develop land for our own communities 
and sell lots to other homebuilders. Our portfolio includes 30,000 
lots owned and controlled in the San Francisco Bay Area; Southland / 
Los Angeles; San Diego / Riverside; Sacramento; and Washington D.C. 
Area markets. For more information, visit the Brookfield Homes 
website at www.brookfieldhomes.com.

   Note: Certain statements in this press release that are not 
historical facts, including information concerning possible or 
assumed future results of operations of the company, expected home 
closings and deliveries (and the timing thereof), expected 2006 
earnings guidance, possible bulk land sales and net income derived 
therefrom, the company's future outlook and growth plans, and those 
statements preceded by, followed by, or that include the words 
"believe", "planned", "should", "goals", "expected", "potential," 
"estimate," "targeted," "scheduled" or similar expressions, 
constitute "forward-looking statements" within the meaning of the 
Private Securities Litigation Reform Act of 1995. Undue reliance 
should not be placed on forward-looking statements because they 
involve known and unknown risks, uncertainties and other factors, 
which may cause the actual results to differ materially from the 
anticipated future results expressed or implied by such 
forward-looking statements. Factors that could cause actual results 
to differ materially from those set forward in the forward-looking 
statements include, but are not limited to: changes in general 
economic, real estate and other conditions; mortgage rate changes; 
availability of suitable undeveloped land at acceptable prices; 
adverse legislation or regulation; ability to obtain necessary 
permits and approvals for the development of our land; availability 
of labor or materials or increases in their costs; ability to develop 
and market our master-planned communities successfully; confidence 
levels of consumers; ability to raise capital on favorable terms; 
adverse weather conditions and natural disasters; relations with the 
residents of our communities; risks associated with increased 
insurance costs or unavailability of adequate coverage and ability to 
obtain surety bonds; competitive conditions in the homebuilding 
industry, including product and pricing pressures; and additional 
risks and uncertainties referred to in our Form 10-K and other SEC 
filings, many of which are beyond our control. We undertake no 
obligation to publicly update any forward-looking statements, whether 
as a result of new information, future events or otherwise.

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                  Brookfield Homes Corporation
                   Condensed Balance Sheets

                                             As at December 31
                                   ----------------------------------
(thousands)                             2005        2004        2003
---------------------------------------------------------------------

Assets
Housing and land inventory         $ 912,617   $ 679,930   $ 567,302
Investments in housing and
 land joint ventures                  53,260      59,810      78,198
Consolidated land inventory
 not owned                            22,100      47,240      25,542
Receivables and other assets          94,081      73,986      80,346
Cash and cash equivalents            198,411     186,731     218,606
Deferred income taxes                 49,417      33,924      43,446
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                                 $ 1,329,886 $ 1,081,621 $ 1,013,440
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Liabilities and Stockholders'
 Equity
Project specific and other
 financings                        $ 691,410   $ 512,098   $ 426,311
Accounts payable and
 other liabilities                   320,787     256,985     145,090
Minority interest                     53,040      66,422      59,781
Stockholders' equity                 264,649     246,116     382,258
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                                 $ 1,329,886 $ 1,081,621 $ 1,013,440
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                  Brookfield Homes Corporation
                Consolidated Statements of Income


                          Three Months Ended             Years Ended
                                December 31              December 31
                         --------------------------------------------
(thousands, except per
 share amounts)             2005       2004        2005         2004
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Revenue
 Housing               $ 440,589  $ 510,560  $1,074,155  $ 1,169,073
 Land and other
  revenues               118,169     36,486     156,897       62,677
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Total revenue            558,758    547,046   1,231,052    1,231,750
Direct cost of sales    (348,569)  (408,783)   (815,423)    (945,387)
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                         210,189    138,263     415,629      286,363
Equity in earnings
 from housing and
 land joint ventures      39,835     53,037      65,084       61,394
Selling, general and
 administrative expense  (19,799)   (28,460)    (89,693)     (79,904)
Minority interest        (20,621)   (15,160)    (36,498)     (28,140)
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Net income before taxes  209,604    147,680     354,522      239,713
Income tax expense       (79,985)   (58,324)   (135,782)     (93,297)
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Net income             $ 129,619   $ 89,356   $ 218,740    $ 146,416
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Weighted average
 shares outstanding
 Basic                    29,208     30,891      30,497       30,903
 Diluted                  29,743     31,563      31,071       31,547

Earnings per share
 Basic                     $4.44      $2.89       $7.17        $4.74
 Diluted                   $4.36      $2.83       $7.04        $4.64
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   Brookfield Homes Corporation (NYSE:BHS)