William Lyon Homes Notified by New York Stock Exchange of Suspension of Trading in Common Stock

William Lyon Homes (the "Company") announced today that
it had been informed by The New York Stock Exchange (the "NYSE") that
the NYSE has, on its own initiative, suspended trading in the
Company's common stock (NYSE:WLS). The NYSE confirmed that this action
will not affect the trading of William Lyon Homes 10 3/4% Senior Notes
due April 1, 2013 (Symbol: WLS 13) or 7 1/2% Senior Notes due February
15, 2014 (Symbol: WLS 14).
   The NYSE has informed the Company that it has information
indicating that the amount of publicly held shares of the Company's
common stock available for trading is not sufficient for auction
market trading. The NYSE further indicated that it intends to make
application to the Securities and Exchange Commission to delist the
common stock.
   William Lyon Homes is primarily engaged in the design,
construction and sale of single family detached and attached homes in
California, Arizona and Nevada. The Company's corporate headquarters
are located in Newport Beach, California.