- Revenue totaled $232 million, an increase of $32 million over the same period in 2003. The 2004 increase in revenue is primarily due to a 13% increase in the average selling price of homes closed in the quarter.

- Net income totaled $18 million, compared to $12 million for the same period in 2003. The increase in net income is primarily due to continued strong market conditions in all our markets.

"We increased our projected 2004 home closings to 1,850 units from 1,750 units as a result of strong market conditions in all our operations. This, together with improved margins and current forward selling into 2005, led us to increase our earnings guidance for 2004 to $131 million or $4.15 per share," commented Ian Cockwell, Brookfield Homes' President and Chief Executive Officer.

Second Quarter 2004 Financial and Operating Highlights

Results of Operations          Three Months Ended    Six Months Ended
                                     June 30              June 30
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(Millions, except per share
 amounts) (unaudited)            2004       2003       2004      2003
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Housing revenue                 $ 212      $ 184      $ 351     $ 265
Total revenue                     232        200        376       344
Gross margin, excluding bulk
 land sales                        57         39         95        61
Net income                         18         12         28        27
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Earnings per share - diluted
  - Excluding bulk land sales  $ 0.56     $ 0.24     $ 0.87    $ 0.40
  - Bulk land sales                 -       0.13          -      0.42
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                               $ 0.56     $ 0.37     $ 0.87    $ 0.82
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Operating Highlights

- As a result of strong market conditions and growth in the number of
active selling communities, the company closed or has in backlog 100%
of the 1,850 planned home closings for 2004, an increase from the
1,528 homes closed in 2003.

- The strength of our markets has contributed to continued price
appreciation in our projects, resulting in a significant improvement
in gross margins.

- The company continues to control over 23,000 lots, approximately a
12 year supply based on our current level of activity, providing
strong visibility on our future cash flows.

- A summary of 2004 operating highlights by region follows:

    - San Francisco Bay Area - Opened two new housing communities in
    Windemere with strong market acceptance and sales, and acquired
    control through options on over 900 unentitled lots.

    - San Diego / Riverside - Advanced development at our major
    projects in San Diego and successfully launched three new
    communities with strong market acceptance.

    - Southland / Los Angeles - Sold 136 homes during the quarter, an
    increase of 38 units over the same period in 2003, and acquired
    control through options on over 300 lots.

    - Northern Virginia - Continued to develop the current phases of
    the Braemar master-planned community and optioned a further 700
    unentitled lots near Braemar, building on the success of this
    active selling community.

Outlook 

"Home buyers continue to fuel the demand for move-up and luxury housing, as interest rate increases to date have not significantly inhibited demand. We are on target to deliver approximately 2,000 homes in 2005, which will continue to drive our bottom-line growth. In addition, our ability to expand or retract our owned lot supply through low-risk options in the supply-constrained California and Virginia markets, positions us for sustainable long-term growth, and protects our capital if markets soften," concluded Cockwell.

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 develop land for our own communities and sell lots to other homebuilders. Our portfolio includes over 23,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los Angeles; San Diego / Riverside; Sacramento; and Northern Virginia 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), targeted 2004 earnings guidance, visibility of future cash flows, lot supply, the company's future outlook and growth plans, and those statements preceded by, followed by, or that include the words "projected", "planned", "should", "goals", "expected", "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.

Brookfield Homes Corporation
                Consolidated Statements of Income

                                          (Unaudited)
---------------------------------------------------------------------
                               Three Months Ended    Six Months Ended
                                      June 30             June 30
---------------------------------------------------------------------
(thousands, except per share
 amounts)                           2004      2003      2004     2003
---------------------------------------------------------------------

Revenue
  Housing                       $212,080  $183,343  $351,038 $264,786
  Land and other revenues         16,367     5,953    20,598   66,285
  Equity in earnings from housing
   and land joint ventures         3,142    10,363     3,993   12,576
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Total revenue                    231,589   199,659   375,629  343,647
Direct cost of sales             174,827   152,983   280,998  256,664
---------------------------------------------------------------------
                                  56,762    46,676    94,631   86,983
Selling, general and
 administrative expense           17,200    16,819    33,371   26,554
Interest expense                   6,100     7,512     9,980   13,023
Minority interest                  4,661     2,400     6,807    3,174
---------------------------------------------------------------------
Net income before taxes           28,801    19,945    44,473   44,232
Income tax expense                10,945     7,985    16,900   17,692
---------------------------------------------------------------------
Net income                      $ 17,856  $ 11,960  $ 27,573 $ 26,540
---------------------------------------------------------------------
---------------------------------------------------------------------

Weighted average shares
 outstanding
   Basic                          30,882    32,028    30,881   32,051
   Diluted                        31,600    32,278    31,511   32,284

Earnings per share
   Basic                          $ 0.58    $ 0.37    $ 0.89   $ 0.83
   Diluted                        $ 0.56    $ 0.37    $ 0.87   $ 0.82
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                    Brookfield Homes Corporation
                      Condensed Balance Sheets

                                        (Unaudited)             As at
                                       As at June 30      December 31
---------------------------------------------------------------------
(thousands)                             2004        2003         2003
---------------------------------------------------------------------

Assets

Housing and land inventory         $ 680,548   $ 638,974    $ 567,302
Investments in housing and
 land joint ventures                  76,590      84,571       78,198
Consolidated land inventory
 not owned                            20,925           -       25,542
Receivables and other assets          64,258      66,349       80,346
Cash and cash equivalents             81,177      36,329      218,606
Deferred tax asset                    45,915      18,423       43,446
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                                   $ 969,413   $ 844,646  $ 1,013,440
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Liabilities and Stockholders' Equity
Project specific and other
 financings                        $ 484,066   $ 351,666    $ 426,311
Accounts payable and other
 liabilities                         157,834      80,057      145,090
Subordinated debt                    137,294      40,000            -
Minority interest                     58,533      29,543       59,781
Stockholders' equity                 131,686     343,380      382,258
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                                   $ 969,413   $ 844,646  $ 1,013,440
---------------------------------------------------------------------
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Brookfield Homes Corporation
Linda Northwood
Director, Investor Relations
(858) 481-2567
Email: lnorthwood@brookfieldhomes.com
eld Homes' website at www.brookfieldhomes.com.