Toll Brothers, Inc. (NYSE:TOL) (http://www.tollbrothers.com), the nation's leading builder of luxury homes, today reported second-quarter and six-month totals for home building revenues, contracts and backlog for the periods ended April 30, 2008. These results are preliminary and unaudited. The Company will announce final results when it releases second-quarter and six-month earnings on June 3, 2008.

For FY 2008's second quarter, home building revenues of approximately $817.9 million were 30% lower than FY 2007's second-quarter total of $1.17 billion. For FY 2008's first six months, home building revenues of approximately $1.66 billion were 27% lower than FY 2007's same-period total of $2.26 billion.

FY 2008's backlog at second-quarter-end of approximately $2.08 billion was 50% lower than FY 2007's second-quarter-end backlog of $4.15 billion and 13% lower than FY 2008's first-quarter-end backlog of $2.40 billion.

FY 2008 second-quarter gross contracts of approximately $730.5 million and 1,237 homes were 49% and 39% lower, respectively, than FY 2007's second quarter totals of $1.44 billion and 2,031 homes. In FY 2008's second quarter, the Company had 308 cancellations totaling approximately $234.1 million, compared to 384 cancellations totaling $274.7 million in FY 2007's second quarter. FY 2008 second-quarter net contracts (after cancellations) totaled 929 homes, or approximately $496.4 million, which were lower by 44% in units and 58% in dollars than FY 2007's second-quarter results of 1,647 net contracts, or $1.17 billion.

The average price per unit of gross contracts signed in FY 2008's second quarter was $590,000, compared to $711,000 in FY 2007's second quarter, and $634,000 in FY 2008's first quarter. The lower average price was due to a combination of factors: higher incentives; a product mix which included a higher percentage of contracts from active adult and other lower priced communities; and fewer sales in high-priced markets such as California, and Manhattan where the Company is temporarily sold out. The average price of the second-quarter FY 2008 cancellations was $760,000 per unit. The effect of these cancellations, coupled with the factors above, was to reduce the average price of net contracts in FY 2008's second quarter to $534,000 per unit. This compared to $580,000 and $557,000, respectively, in FY 2008's first quarter and FY 2007's fourth quarter and $710,000 in FY 2007's second quarter.

FY 2008 six-month net contracts totaled 1,576 homes, or approximately $871.5 million, a decline of 41% in units and 55% in dollars, compared to FY 2007's same period results of 2,674 net contracts, or $1.92 billion.

The Company, which has continued to renegotiate and, in some cases, reduce its optioned land positions, ended FY 2008's second quarter with approximately 51,800 lots owned and optioned, compared to approximately 91,200 at its peak at the end of the second quarter of FY 2006. The Company ended FY 2008's second quarter with 300 selling communities, compared to 315 at 2008's first-quarter-end and its peak of 325 at FY 2007's second-quarter-end. The Company expects to be selling from approximately 290 communities by fiscal-year-end 2008.

Robert I. Toll, chairman and chief executive officer, stated: ``The just-completed spring selling season was quite weak in most markets as buyers remained on the sidelines. We believe there is significant pent-up demand which is growing. When we have held promotions, buyers have come out to play and put down deposits. Often, however, a lack of confidence in the direction of home prices overcomes their enthusiasm and they don't take the next step of going to contract. They, like all of us, read the papers and watch TV, both of which keep advising them that home prices are declining.

``Interest rates are still low, affordability has improved and there is an abundance of inventory for customers to choose from. It is clearly a buyers' market, but buyers can only take advantage of it if they buy; sooner or later they will but, unfortunately, we can't predict when.

``In these tough times, we continue to focus on our balance sheet and liquidity. We ended 2008's second quarter with approximately $1.23 billion in cash and another $1.27 billion available under our bank credit facility, which matures in 2011. With over $2.5 billion of available capital we hope to be able to take advantage of opportunities that we expect will arise from today's distress. We are looking for deals in most markets but have yet to see any opportunities that fit our parameters of high-end communities at bargain prices. More offerings have come to market recently but nothing has excited us yet.

``When the market recovers, we believe our playing field, which is the luxury market, will have fewer competitors. Currently, and for the foreseeable future, we believe banks and the public debt markets will continue to put constraints on the amount of capital available to most builders; this, logically, will favor those companies with the strongest balance sheets.

``By developing incentive strategies on a community-by-community basis, we have been selling homes in a difficult market while maintaining the reputation of our communities. While our sales strategy results in slower sales paces, to-date it has helped us sustain (pre-write-off) profitability and, coupled with our reduced land and land development expenditures, enabled us to strengthen our cash position. Since we already own several years' supply of land in most markets, we do not have to keep buying land to maintain our operations at today's lower sales paces. With no major public debt due until 2011 we believe we can sustain this strategy for quite some time.''

Joel H. Rassman, chief financial officer, stated: ``With conditions still weak in most markets, we expect to continue to face challenging times ahead. We are still in the midst of finalizing our second-quarter impairment analysis; however, we currently estimate that pre-tax write-downs in FY 2008's second quarter will be between $225 million and $375 million.''

Robert I. Toll continued: ``Various branches of the federal government have proposed many programs to aid the housing market. We favor those initiatives that we believe will stabilize home prices by encouraging demand through a tax incentive for those who buy homes between now and November 1, 2008. We believe that stimulating demand will help reduce inventories and stop the drop in home prices, which will likely stabilize many other components of the current housing and financial crisis. If demand picks up, the market can return to equilibrium. Homes collateralize huge amounts of debt; if people can sell their homes for more than their debt, they will do so rather than go into foreclosure. We believe escaping the current downward spiral of weak confidence and falling home prices is the key to righting the listing housing market and stemming the debt crisis.''

Toll Brothers, Inc. is the nation's leading builder of luxury homes. The Company began business in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol ``TOL''. The Company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 21 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia and West Virginia.

Toll Brothers builds luxury single-family detached and attached home communities, master planned luxury residential resort-style golf communities and urban low-, mid- and high-rise communities, principally on land it develops and improves. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management and landscape subsidiaries. The Company also operates its own lumber distribution, and house component assembly and manufacturing operations.

Toll Brothers, a FORTUNE 500 Company, is the only publicly traded national home building company to have won all three of the industry's highest honors: America's Best Builder from the National Association of Home Builders, the National Housing Quality Award, and Builder of the Year. Toll Brothers proudly supports the communities in which it builds; among other philanthropic pursuits, the Company sponsors the Toll Brothers - Metropolitan Opera International Radio Network, bringing opera to neighborhoods throughout the world. For more information, visit tollbrothers.com.