Company Profile for Hearthstone.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Aug. 1, 2003

Hearthstone was the first, and today is largest institutional investor of home developments in the United States, with nearly $7 billion committed to funding the industry. Founded in 1992, Hearthstone has committed $6.8

For business news editors: Hearthstone commissions annual studies and provides expert analyses about the state of the homebuilding industry throughout the United States, with a special emphasis on controversial issues/conflicts, home buying and financing trends impacting consumers, builder/developers and investors.

In 2002, Hearthstone provided nearly $1 billion in financial commitments to the home building industry, funding 60 residential developments associated with 16 builders in seven states representing 5,604 homes. (This represents 14.7% of all of Hearthstone financial commitments from 1992 to 2002 combined.)

James Z. Pugash is Chairman and CEO of Hearthstone. A Harvard law graduate and Rhodes Scholar, Pugash earned his undergraduate degree in economics at Yale, is a board member of the Joint Ctr. for Housing Studies at Harvard, the Real Estate Advisory Board at UC Berkeley and the Mortgage Roundtable for the Natl. Assn. of Homebuilders, a.k.a. NAHB. He is editor of the Hearthstone Natl. Housing Monitor and a former v.p. of Occidental Petroleum and exec. asst. to Dr. Armand Hammer.

Hearthstone has headquarters in San Francisco, with offices in Los Angeles, Chicago, and San Diego.

At the time Hearthstone was formed in 1992, homebuilders across the United States were suffering from a shortage of capital resulting from changes in federal laws affecting the banking industry and from a loss of investor confidence in real estate. Hearthstone was organized in response to this capital shortage and in recognition of the long-term investment opportunity that single-family homebuilding presents for institutional investors.

Hearthstone manages funds for numerous public and private pension plans, university endowments, Fortune 100 companies and large private trusts. Hearthstone invests these funds in homebuilding and residential lot development projects throughout the United States.

   Company:                Hearthstone

   Headquarters Address:   55 Francisco Street
                           Suite 700
                           San Francisco, CA 94133

   Main Telephone:         858-947-2709

   Website:                www.hearthstone.com

   Type of Organization:   Insitutional Investments

   Industry:               Professional Services: Finance

   Key Executives:         CEO: James Pugash

   Director Media Relations
     Contact:              David Kusumoto
     Phone:                858-947-2709
     Email:                davidmkusumoto@hotmail.com