TOUSA, Inc. Files Plan of Reorganization and Disclosure Statement

Name	Symbol	Market	Type
T Rowe Price International Equity ETF	AMEX:TOUS	AMEX	Exchange Traded Fund

	Price Change	% Change	Price	High Price	Low Price	Open Price	Traded	Last Trade
	0.0228	0.08%	28.25	28.32	28.24	28.24	1,775	21:15:00

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'Stand-Alone' Plan Calls for Conversion of More Than $300M in Second Lien Debt to Equity HOLLYWOOD, Fla., Oct. 14 /PRNewswire/ -- TOUSA, Inc. (Pink Sheets: TOUS) and certain of its subsidiaries, today announced the filing of their Plan of Reorganization (the "Plan") and related Disclosure Statement (the "Disclosure Statement") with the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division. "The filing of our Plan of Reorganization is an important achievement and we are excited to announce this development. We have made significant progress over the past nine months in restructuring our operations and have transformed our business in this very difficult market environment. Our 'stand-alone' Plan of Reorganization includes a substantial reduction in our debt obligations, allowing us to emerge from Chapter 11 with a stronger balance sheet and greater financial flexibility that will position TOUSA to compete effectively in the industry and to continue to deliver quality homes to our customers," said TOUSA CEO and President, John R. Boken. Key provisions of the Company's Plan, as filed with the Bankruptcy Court, include: -- The conversion of more than $300 million in Second Lien debt to equity and full ownership of the restructured enterprise, subject to the outcome of certain litigation. -- Use of the Company's significant cash balance at emergence, which is expected to be in the range of $125 million to $145 million, to fund operations post-emergence. -- The extinguishment of approximately $1 billion in bond debt and approximately $600 million of other unsecured obligations. -- The creation and funding of a litigation trust for the purpose of continuing to pursue certain claims, including the Creditors' Committee Action, challenging the liens of certain secured creditors of TOUSA, and the distribution of litigation trust interests to unsecured creditors, while at the same time preserving the status quo of the relative rights, claims and defenses of all parties to the Committee Action, including the defendants named therein. -- Issuance of new first lien debt to the Company's first lien bank creditors such that they will receive full payment of their claims, subject to the outcome of certain litigation. -- Issuance of $15 million in new second lien debt to the Company's second lien bank creditors in partial satisfaction of their claims, subject to the outcome of certain litigation. -- Current holders of TOUSA common stock will receive no distribution, and those securities will be canceled and shall be of no further force or effect. "The filing of our Plan of Reorganization represents the culmination of an extensive effort to identify and pursue numerous opportunities to restore TOUSA's financial health and maximize recoveries for our creditors. As we move through the next stages of this process, we will continue to work closely with the holders of our second lien debt, and our other creditor constituencies, to explore potential variations that may result in modifications to certain aspects of the Plan of Reorganization," added Mr. Boken. Upon emergence from Chapter 11, the TOUSA enterprise will continue to be a leading national homebuilder. Moreover, the Company's non-debtor affiliates Universal Land Title, Inc., Preferred Home Mortgage Company and Alliance Insurance and Information Services will remain an integral part of Company operations and an important element of TOUSA's service offering. The Plan consists of separate Chapter 11 plans for each of the 39 Debtor entities. However, the plans for the majority of the Debtors provide for identical treatment for similarly situated classes of creditors. The Disclosure Statement includes an overview of the Company's restructuring progress and other information about the Company, a description of distributions to creditors and an analysis of the Plan's feasibility, as well as many of the technical matters required prior to exiting from Chapter 11, such as descriptions of who will be eligible to vote on the Plan and the voting process. Copies of the Plan and Disclosure Statement materials can be found at http://www.tousa.com/reorg. In addition, TOUSA will file a Form 8-K with the Securities and Exchange Commission, http://www.sec.gov/. TOUSA, Inc., and certain subsidiaries filed voluntary petitions for Chapter 11 under the U.S. Bankruptcy Code on January 29, 2008. 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. This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of the Company and its management. Any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to: (i) the Company's ability to continue as a going concern; (ii) the ability of the Company to operate pursuant to the terms of its cash collateral arrangement with its secured lenders; (iii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding; (iv) the ability of the Company to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts that are critical to its operations; (viii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (ix) the ability of the Company to fund and execute its business plan;(x) the ability of the Company to attract, motivate and/or retain key executives and employees; (xi) the ability of the Company to attract and retain customers and (xii) other risks and factors regarding the Company and the home building industry identified from time-to-time in the Company's reports filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2007, which can be found on the Company's website at http://www.tousa.com/. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information. DATASOURCE: TOUSA, Inc. CONTACT: Jennifer E. Mercer of Van Meter Inc., +1-954-364-4013, Web Site: http://www.sec.gov/ http://www.tousa.com/ http://www.tousa.com/reorg

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TOUS T Rowe Price International Equity ETF