CULIACAN, Mexico, July 21 /EMWNews/ -- Desarrolladora

Homex, S.A.B. de C.V. ("Homex" or "the Company") [NYSE: HXM, BMV: HOMEX]

today announced financial results for the second quarter ended June 30,

2008(1).



    New Mexican Accounting Reporting Standard for 2008:



    As companies in Mexico no longer follow inflation accounting (Bulletin

B- 10), 2Q08 figures are presented without inflation adjustment; while 2Q07

figures are presented with inflation adjustment through December 31, 2007.

Therefore, the results of the two quarterly periods are not directly

comparable.



    Highlights



    -- Total revenues in the 2008 second quarter increased 19.5% to Ps.4.4

billion (US$425 million) from Ps.3.7 billion (US$356 million) in the

year-ago period.



    -- Earnings before interest, taxes, depreciation and amortization

(EBITDA), during the quarter were Ps.1,052 million (US$102 million), a

20.3% increase from the Ps.875 million (US$85 million) reported in the

second quarter of 2007.



    -- EBITDA margin increased 15 basis points to 24.0% in the second

quarter of 2008 from 23.9% EBITDA margin reported in the second quarter of

2007.



    -- Net income increased 67.9% in the second quarter of 2008 to Ps.722

million (US$70 million) from Ps.430 million (US$42 million) in the second

quarter of 2007.



    -- Earnings per share for the second quarter of 2008 increased 68.4% to

Ps.2.16 compared to Ps.1.28 in the comparable quarter of 2007.



    (1) Unless otherwise noted, all monetary figures are presented in

Mexican pesos and in accordance with recently applicable Mexican Financial

Reporting Standards (MFRS): "NIF B-10" Second Quarter 2008 figures are

presented without inflation adjustment; while Second Quarter 2007 figures

are presented with inflation adjustment through December 31, 2007. The

symbols "Ps." and "$" refer to Mexican pesos and "US$" refers to U.S.

dollars. U.S. dollar figures are presented only for the convenience of the

reader and estimated using an exchange rate Ps.10.30 per US$1.00. Second

quarter 2008 financial information is unaudited and is subject to

adjustment.



    "Once again, Homex has demonstrated its strength and leadership in the

Mexican homebuilding industry by delivering solid revenue growth and

continued margin improvement," Gerardo de Nicolas, Chief Executive Officer

of Homex said. "During the quarter, we took another important step in our

expansion strategy with the start of operations in the city of Saltillo and

we continued with our implementation program of our new aluminium mould

construction technology in nine additional affordable entry and middle

income level cities. The fundamentals of the homebuilding industry in

Mexico remain strong and we remain confident that through our expansion

strategy Homex will keep gaining market share and improving operational

efficiencies during this year and over the longer term."



    Mr. de Nicolas reiterated previously announced guidance for 2008,

expecting revenue growth of 16-18 percent in real terms and an EBITDA

margin in the range of 24 percent to 25 percent.










    FINANCIAL AND OPERATING HIGHLIGHTS



    Thousands                                                 SIX MONTHS

    of  pesos        2Q'08       2Q'07   %            2008        2007     %

                     (a)                Chg.                              Chg.

    Volume

     (Homes)        13,426      12,289    9.3%      24,077      22,050    9.2%

    Revenues    $4,381,085  $3,665,851   19.5%  $7,862,452  $6,598,372   19.2%

    Gross

     profit     $1,418,840  $1,162,437   22.1%  $2,514,233  $2,095,655   20.0%

    Operating

     income       $926,871    $798,743   16.0%  $1,629,235  $1,440,063   13.1%

    Net Interest

     Expense       $32,631     $91,033  -64.2%     $60,118    $171,844  -65.0%

    Net Income    $722,295    $430,184   67.9%  $1,226,622    $896,997   36.7%

    EBITDA (b)  $1,051,983    $874,797   20.3%  $1,897,025  $1,729,538    9.7%

    Gross Margin     32.4%       31.7%               32.0%       31.8%

    Operating

     Margin          21.2%       21.8%               20.7%       21.8%

    EBITDA Margin    24.0%       23.9%               24.1%       26.2%

    Earnings

     per share        2.16        1.28                3.66        2.67

    Earnings per

     ADR presented

     in US (c)        1.26        0.75                2.13        1.56

    Weighted avg.

     shares

     outstanding

     (MM)            334.9       335.9               334.9       335.9

    Accounts

     receivable

     (as a %

     of sales)                                       54.8%       39.4%

    Accounts

     receivable

     (days)

     period-end                                        197         142

    Inventory

     turnover

     (days)

     period-end                                        369         379

    Inventory

     (w/o land)

     turnover

     (days)

     period-end                                         63          63



    (a) As a result of the elimination of inflation accounting in Mexico

effective December 31, 2007, the results of the second quarter of 2007 and

2008 are not directly comparable.



    (b) EBITDA is defined as net income plus depreciation and amortization,

net comprehensive financing cost, income tax expense, employee statutory

profit sharing expense and capitalized interest. Please see Financial

Results / EBITDA that includes a table that sets forth a reconciliation of

net income to EBITDA for the second quarter 2008 and 2007.



    (c) US$ values estimated using an exchange rate of Ps.10.30 per

US$1.00. Common share/ADR ratio: 6:1



    Detailed Financial Reports



    The Company produces a detailed earnings report that provides

information regarding Operating and Financial results. This detailed

information is considered part of this earnings announcement and is

available in full with this earnings release via the Company's website at

http://www.homex.com.mx/ri/index.htm, through email distribution or the

Company's filings with the SEC and the CNBV.

    About Homex



    Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM, BMV: HOMEX] is a

leading, vertically integrated home-development company focused on

affordable entry-level and middle-income housing in Mexico. It is one of

the most geographically diverse homebuilders in the country. Homex has a

leading position in the top four markets in Mexico and is the largest

homebuilder in Mexico, based on the number of homes sold, revenues and net

income.



    For additional corporate information, please visit the Company's web

site at: http://www.homex.com.mx .



    Desarrolladora Homex, S.A.B. de C.V. quarterly reports and all other

written materials may from time to time contain statements about expected

future events and financial results that are forward-looking and subject to

risks and uncertainties. Forward-looking statements involve inherent risks

and uncertainties. We caution you that a number of important factors can

cause actual results to differ materially from the plans, objectives,

expectations, estimates and intentions expressed in such forward-looking

statements. These factors include economic and political conditions and

government policies in Mexico or elsewhere, including changes in housing

and mortgage policies, inflation rates, exchange rates, regulatory

developments, customer demand and competition. For those statements, the

Company claims the protection of the safe harbor for forward-looking

statements contained in the Private Securities Litigation Reform Act of

1995. Discussion of factors that may affect future results is contained in

our filings with the Securities and Exchange Commission.



    Attached are the unaudited Consolidated Financial Information Data of

Desarrolladora Homex, S.A.B. de C.V. for the three-month and six-month

periods ended June 30, 2008 and 2007, the Consolidated Statement of Changes

in Financial Position for the period ended June 30, 2008 and 2007 and the

Consolidated Balance Sheet of Desarrolladora Homex, S.A.B. de C.V.






    HOMEX SECOND QUARTER 2008 RESULTS CONFERENCE CALL



    DATE:    Tuesday, July 22, 2008



    TIME:    9:00 AM Central Time (Mexico City)

             10:00 AM Eastern Time (New York)



    HOSTS:   Gerardo de Nicolas, Chief Executive Officer

             Alan Castellanos, Vice President of Finance and Planning and

              Chief Financial Officer

             Carlos J. Moctezuma, Investor Relations Officer



    DIAL-IN: International: 913-312-0700

             U.S.: 888-710-3981

             Passcode: 8423994

             Please call 10 minutes prior to start time

             and request the Homex call

    PRE-REGISTER: Participants may pre-register at:

https://ww4.premconf.com/webrsvp/register?conf_id=8423994 or by calling to

the RSVP line at 719-457-2550 to register by phone. Pre-registrants will

obtain a pin number to be used the day of the conference call to be

connected directly.



    REPLAY: 719-457-0820, available one hour after the call ends, the pass

code to access the replay of the call is 8423994. Or via webcast at

http://www.homex.com.mx/ri/index.htm



    A copy of the earnings release will be e-mailed to you after market

close on July 21, 2008. It will also be available on the Company IR website

at http://www.homex.com.mx/ri/index.htm



    Please contact Mr. Carlos Moctezuma at (011-52-667) 758 5838 or via

email at [email protected] with any questions.



    DESARROLLADORA HOMEX CONSOLIDATED BALANCE SHEET COMPARISON OF JUNE 30,

2008 WITH JUNE 30, 2007




    (Figures in

     thousands

     of pesos)           June 08             June 07            Change 08 / 07

    ASSETS

    CURRENT ASSETS

    Cash and cash

     equivalents       2,180,312    8.1%   2,136,750   10.2%           2.0%

    Accounts

     receivable, net   9,581,817   35.8%   5,724,383   27.2%          67.4%

    Inventories       12,181,750   45.5%  10,444,703   49.7%          16.6%

    Other current

     assets              254,914    1.0%     357,840    1.7%         -28.8%

        Total current

         assets       24,198,793   90.4%  18,663,677   88.7%          29.7%



    Property and

     equipment, net    1,238,866    4.6%     890,958    4.2%          39.0%

    Goodwill             731,861    2.7%     731,861    3.5%           0.0%

    Other assets         608,564    2.3%     744,660    3.5%         -18.3%

        TOTAL         26,778,084  100.0%  21,031,155  100.0%          27.3%



    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES

    Notes payable

     to financial

     institutions      1,134,744    4.2%     276,190    1.3%         310.9%

    Accounts payable   6,804,809   25.4%   5,725,457   27.2%          18.9%

    Advances from

     customers           241,365    0.9%     324,857    1.5%         -25.7%

    Taxes payable        123,496    0.5%     235,266    1.1%         -47.5%

        Total current

         liabilities   8,304,414           6,561,770                  26.6%



    Long-term notes

     payable to

     financial

     institutions      3,923,503   14.7%   3,415,063   16.2%          14.9%

    Labor Obligations    103,063    0.4%      53,167    0.3%          93.8%

    DEFERRED

     INCOME TAXES      3,344,452   12.5%   2,483,000   11.8%          34.7%

        Total

         liabilities  15,675,432   58.5%  12,513,000   59.5%          25.3%

    STOCKHOLDERS' EQUITY

    Common stock         528,011    2.0%     528,011    2.5%           0.0%

    Additional

     paid-in capital   3,180,881   11.9%   3,280,223   15.6%          -3.0%

    Retained earnings  6,965,647   26.0%   4,403,324   20.9%          58.2%

    Excess in

     restated

     stockholders'

     equity              340,559    1.3%     332,713    1.6%           2.4%

    Cumulative initial

     effect of deferred

     income taxes       -157,827   -0.6%    -158,196   -0.8%          -0.2%

        Majority

         Stockholders'

         Equity       10,857,271   40.5%   8,386,075   39.9%          29.5%



    Minority interest    245,382    0.9%     132,080    0.6%          85.8%

        TOTAL

         STOCKHOLDERS'

         EQUITY       11,102,653   41.5%   8,518,155   40.5%          30.3%



    TOTAL LIABILITIES

     AND SHAREHOLDERS'

     EQUITY           26,778,084  100.0%  21,031,155  100.0%          27.3%



    DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF SECOND

QUARTER 2008 WITH SECOND QUARTER 2007




    (Figures in

     thousands

     of pesos)            2Q'08                2Q'07            Change 08 / 07

    REVENUES

    Affordable-entry

     level revenue    3,377,817   77.1%    2,813,280   76.7%         20.1%

    Middle income

     housing revenue    974,139   22.2%      828,647   22.6%         17.6%

    Other revenues       29,129    0.7%       23,924    0.7%         21.8%

    TOTAL REVENUES    4,381,085  100.0%    3,665,851  100.0%         19.5%

    TOTAL COSTS       2,962,245   67.6%    2,503,414   68.3%         18.3%



    GROSS PROFIT      1,418,840   32.4%    1,162,437   31.7%         22.1%

    SELLING AND

     ADMINISTRATIVE

     EXPENSES

    Selling and

     Administrative

     Expenses           469,204   10.7%      340,350    9.3%         37.9%

    Beta Trademark

     Amortization        22,764    0.5%       23,344    0.6%         -2.5%

    TOTAL SELLING AND

     ADMINISTRATIVE

     EXPENSES           491,968   11.2%      363,694    9.9%         35.3%



    OPERATING INCOME    926,871   21.2%      798,743   21.8%         16.0%

    OTHER INCOME

     AND EXPENSES        13,593    0.3%        3,335    0.1%             -

    NET COMPREHENSIVE

     FINANCING COST

    Interest expense

     and commissions     79,619    1.8%      119,637    3.3%        -33.4%

    Interest income     -46,988   -1.1%      -28,604   -0.8%             -

    Foreign exchange

     (gain) loss       -128,814   -2.9%       34,799    0.9%             -

    Monetary

     position loss            0    0.0%        2,347    0.1%       -100.0%

                        -96,183   -2.2%      128,179    3.5%       -175.0%

    INCOME BEFORE

     INCOME TAX AND

     EMPLOYEE STATUTORY

     PROFIT SHARING

     EXPENSE          1,036,647   23.7%      673,899   18.4%         53.8%



    INCOME TAX EXPENSE  290,261    6.6%      206,416    5.6%         40.6%

    NET INCOME          746,386   17.0%      467,484   12.8%         59.7%

    MAJORITY INTEREST   722,295   16.5%      430,184   11.7%         67.9%

    MINORITY INTEREST    24,091    0.5%       37,299    1.0%        -35.4%

    NET INCOME          722,295   16.5%      430,184   11.7%         67.9%

    Earnings per share     2.16    0.0%         1.28    0.0%         68.4%



    EBITDA            1,051,983   24.0%      874,797   23.9%         20.3%



    DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF SIX

MONTHS 2008 WITH SIX MONTHS 2007




    (Figures in

     thousands

     of pesos)          2008 YTD            2007 YTD            Change 08 / 07

    REVENUES

    Affordable-entry

     level revenue     6,055,874   77.0%   5,038,228   76.4%         20.2%

    Middle income

     housing revenue   1,751,499   22.3%   1,495,442   22.7%         17.1%

    Other revenues        55,079    0.7%      64,702    1.0%        -14.9%

    TOTAL REVENUES     7,862,452  100.0%   6,598,372  100.0%         19.2%

    TOTAL COSTS        5,348,219   68.0%   4,502,717   68.2%         18.8%



    GROSS PROFIT       2,514,233   32.0%   2,095,655   31.8%         20.0%

    SELLING AND

     ADMINISTRATIVE

     EXPENSES

    Selling and

     Administrative

     Expenses            839,471   10.7%     608,778    9.2%         37.9%

    Beta Trademark

     Amortization         45,527    0.6%      46,814    0.7%         -2.7%

    TOTAL SELLING

     AND ADMINISTRATIVE

     EXPENSES            884,998   11.3%     655,592    9.9%         35.0%



    OPERATING INCOME   1,629,235   20.7%   1,440,063   21.8%         13.1%

    OTHER INCOME          18,362    0.2%     156,473    2.4%        -88.3%

    NET COMPREHENSIVE

     FINANCING COST

    Interest expense

     and commissions     142,911    1.8%     239,545    3.6%        -40.3%

    Interest income      -82,793   -1.1%     -67,701   -1.0%         22.3%

    Foreign exchange

     (gain) loss        -174,209   -2.2%      38,169    0.6%             -

    Monetary

     position loss             0    0.0%      39,461    0.6%       -100.0%

                        -114,091   -1.5%     249,474    3.8%       -145.7%

    INCOME BEFORE

     INCOME TAX AND

     EMPLOYEE STATUTORY

     PROFIT SHARING

     EXPENSE           1,761,688   22.4%   1,347,063   20.4%         30.8%



    INCOME TAX EXPENSE   490,473    6.2%     408,861    6.2%         20.0%

    NET INCOME         1,271,215   16.2%     938,202   14.2%         35.5%

    MAJORITY INTEREST  1,226,622   15.6%     896,997   13.6%         36.7%

    MINORITY INTEREST     44,593    0.6%      41,205    0.6%          8.2%

    NET INCOME         1,226,622   15.6%     896,997   13.6%         36.7%

    Earnings per share      3.66                2.67                 37.2%



    EBITDA             1,897,025   24.1%   1,729,538   26.2%          9.7%







           Consolidated Statement of Changes in Financial Position

                         As of June 30, 2008 and 2007



    Net income                    1,226,622           896,997



    Non Cash items:

    Depreciation                    145,745            86,187

    Minority Interest                44,593            41,205

    Amortization of

     Intangibles                     45,527            46,814

    Labor obligations

    Deferred income taxes           490,473           408,861

                                  1,952,960         1,480,064

    (Increase) decrease in:

    Trade accounts receivable   (1,797,119)         (233,688)

    Inventories (w/land)          (698,637)       (1,051,678)

    Trade accounts payable        (399,167)           119,064

    Other A&L, net (1)            (274,326)         (274,378)

    Changes in operating

     assets and liabilities     (3,169,250)       (1,440,681)



    Operating Cash Flow         (1,216,290)            39,384





    Capex                         (228,882)         (308,050)



    Free Cash Flow              (1,445,172)         (268,666)



    Net Financing Activities      1,262,560          (13,871)



    Net increase (decrease)

     cash and restricted cash     (182,612)         (282,537)



    Balance at beginning          2,362,924         2,419,286



    Balance at end                2,180,312         2,136,749



     (1) Includes adjustment of goodwill and others.







    Investor  Contacts

    [email protected]



    Carlos J. Moctezuma

    Head of Investor Relations

    +5266-7758-5800

    [email protected]