Investor Relations

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "The housing market has continued to deteriorate throughout the second quarter. The supply of new and existing homes has continued to increase resulting in declining home prices across our markets. We have continued to adjust pricing to meet today's market conditions. This has allowed us to carefully manage inventory levels; however, it has also resulted in lower margins and further impairments."

Mr. Miller continued, "We have remained focused on our balance sheet first approach. Through our quarterly operating performance and asset management review process, we have refined individual asset strategies and values based on current market conditions. As the market and our operating results have declined, our focus on strong cash flow generation has continued to strengthen our balance sheet."

"Our management team continues to be very focused on daily operations. We are using the slow market conditions to refine our operating processes and improve efficiencies. We are focused on the four steps of our operating strategy: rightsizing SG&A expenses, reducing hard construction costs, driving sales and aggressively managing our assets. We continue to aggressively manage our inventory levels by converting inventory to cash, and reducing both land purchases and starts."

Mr. Miller concluded, "As we look to our third quarter and the remainder of 2007, we continue to see weak, and perhaps deteriorating, market conditions. Given uncertain market conditions, we continue to lack visibility as to future results, but we currently expect to be in a loss position in our third quarter. While second quarter results are disappointing, in these weak market conditions, we will remain focused on our balance sheet first strategy which should position us well for future opportunities."

                            RESULTS OF OPERATIONS

                 THREE MONTHS ENDED MAY 31, 2007 COMPARED TO
                       THREE MONTHS ENDED MAY 31, 2006

Homebuilding

Revenues from home sales decreased 33% in the second quarter of 2007 to $2.7 billion from $4.0 billion in 2006. Revenues were lower primarily due to a 29% decrease in the number of home deliveries and a 7% decrease in the average sales price of homes delivered in 2007. New home deliveries, excluding unconsolidated entities, decreased to 8,940 homes in the second quarter of 2007 from 12,506 homes last year. In the second quarter of 2007, new home deliveries were lower in each of the Company's homebuilding segments and Homebuilding Other, compared to 2006. The average sales price of homes delivered decreased to $298,000 in the second quarter of 2007 from $322,000 in the same period last year, primarily due to higher sales incentives offered to homebuyers ($43,700 per home delivered in the second quarter of 2007, compared to $24,700 per home delivered in the same period last year).

Gross margins on home sales excluding FAS 144 valuation adjustments were $364.8 million, or 13.6%, in the second quarter of 2007, compared to $955.2 million, or 23.7%, in 2006. Gross margin percentage on home sales decreased compared to last year in all of the Company's homebuilding segments primarily due to higher sales incentives offered to homebuyers. The gross margin percentage decline was highest in the Company's Homebuilding East and West segments. Gross margins on home sales were $193.2 million, or 7.2%, in the second quarter of 2007 including $171.6 million of FAS 144 valuation adjustments ($100.3 million, $16.2 million, $49.1 million and $6.0 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other), compared to gross margins on home sales of $946.5 million, or 23.5%, in the second quarter of 2006 including $8.7 million of FAS 144 valuation adjustments ($5.9 million, $1.6 million and $1.2 million, respectively, in the Company's Homebuilding East, Central and West segments).

Selling, general and administrative expenses decreased $78.9 million, or 17%, in the second quarter of 2007, compared to the same period last year. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 14.7% in the second quarter of 2007, from 11.8% in 2006. The 290 basis point increase was primarily due to lower revenues and costs related to the consolidation of operations in certain markets.

Loss on land sales totaled $108.8 million in the second quarter of 2007, including $69.4 million of FAS 144 valuation adjustments and $48.9 million of write-offs of deposits and pre-acquisition costs related to approximately 5,400 homesites under option that the Company does not intend to purchase. In the second quarter of last year, gross profit from land sales totaled $41.1 million, net of $16.6 million of FAS 144 valuation adjustments and $21.8 million of write-offs of deposits and pre-acquisition costs related to approximately 4,800 homesites that were under option. FAS 144 valuation adjustments in the second quarter of 2007 were $30.5 million, $2.7 million, $19.3 million and $16.9 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other, compared to $3.0 million, $5.7 million and $7.9 million, respectively, in the prior year in the Company's Homebuilding East and Central segments and Homebuilding Other. Write-offs of deposits and pre-acquisition costs in the second quarter of 2007 were $16.0 million, $9.9 million, $21.7 million and $1.3 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other, compared to $1.6 million, $0.5 million, $7.3 million and $12.4 million, respectively, in the prior year in the Company's Homebuilding East, Central and West segments and Homebuilding Other.

Equity in loss from unconsolidated entities was $26.5 million in the second quarter of 2007, which included $27.5 million of FAS 144 valuation adjustments ($1.1 million and $26.4 million, respectively, in the Company's Homebuilding Central and West segments) to the Company's investments in unconsolidated entities, compared to equity in earnings from unconsolidated entities of $14.8 million last year. Management fees and other income (expense), net, totaled ($12.8) million in the second quarter of 2007 (including $11.6 million of FAS 144 valuation adjustments), compared to $16.4 million in the second quarter of 2006. Minority interest expense, net was $0.8 million and $6.5 million, respectively, in the second quarter of 2007 and 2006. Sales of land, equity in earnings (loss) from unconsolidated entities, management fees and other income (expense), net and minority interest expense, net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.

Financial Services

Operating earnings for the Financial Services segment were $14.2 million in the second quarter of 2007, compared to $34.6 million last year. The decrease was primarily due to decreased profitability from the segment's mortgage operations as a result of decreased volume and profit per loan, and $14.4 million of partial write-offs of land seller notes receivable due to the renegotiation of terms.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $10.7 million, or 19%, in the second quarter of 2007, compared to the same period last year. As a percentage of total revenues, corporate general and administrative expenses increased to 1.6% in the second quarter of 2007, from 1.2% in 2006, primarily due to lower revenues.

                  SIX MONTHS ENDED MAY 31, 2007 COMPARED TO
                        SIX MONTHS ENDED MAY 31, 2006

Homebuilding

Revenues from home sales decreased 24% in the six months ended May 31, 2007 to $5.3 billion from $6.9 billion in 2006. Revenues were lower primarily due to an 18% decrease in the number of home deliveries and a 7% decrease in the average sales price of homes delivered in 2007. New home deliveries, excluding unconsolidated entities, decreased to 17,506 homes in the six months ended May 31, 2007 from 21,410 homes last year. In the six months ended May 31, 2007, new home deliveries were lower in each of the Company's homebuilding segments and Homebuilding Other, compared to 2006. The average sales price of homes delivered decreased to $300,000 in the six months ended May 31, 2007 from $324,000 in 2006 primarily due to higher sales incentives offered to homebuyers ($44,600 per home delivered in 2007, compared to $20,200 per home delivered in 2006).

Gross margins on home sales excluding inventory valuation adjustments were $774.0 million, or 14.6%, in the six months ended May 31, 2007, compared to $1.7 billion, or 24.2%, in 2006. Gross margin percentage on home sales decreased compared to last year in all of the Company's homebuilding segments and Homebuilding Other primarily due to higher sales incentives offered to homebuyers. The gross margin percentage decline was highest in the Company's Homebuilding East and West segments. Gross margins on home sales were $554.1 million, or 10.4%, in the six months ended May 31, 2007 including $219.9 million of FAS 144 valuation adjustments ($119.4 million, $27.5 million, $66.2 million and $6.8 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other), compared to gross margins on home sales of $1.7 billion, or 24.1%, in the six months ended May 31, 2006 including $8.7 million of FAS 144 valuation adjustments ($5.9 million, $1.6 million and $1.2 million, respectively, in the Company's Homebuilding East, Central and West segments).

Selling, general and administrative expenses decreased $88.8 million, or 10%, in the six months ended May 31, 2007, compared to the same period last year. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 14.4% in the six months ended May 31, 2007, from 12.3% in 2006. The 210 basis point increase was primarily due to lower revenues, higher broker commissions as a percentage of revenues from home sales and costs related to the consolidation of operations in certain markets.

Loss on land sales totaled $135.3 million in the six months ended May 31, 2007, including $82.7 million of FAS 144 valuation adjustments and $69.9 million of write-offs of deposits and pre-acquisition costs related to approximately 9,400 homesites under option that the Company does not intend to purchase. In the six months ended May 31, 2006, gross profit from land sales totaled $90.2 million, net of $24.0 million of FAS 144 valuation adjustments and $25.3 million of write-offs of deposits and pre-acquisition costs related to approximately 6,500 homesites that were under option. FAS 144 valuation adjustments in the six months ended May 31, 2007 were $40.1 million, $2.7 million, $22.8 million and $17.1 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other, compared to $3.0 million, $12.7 million and $8.3 million, respectively, in the prior year in the Company's Homebuilding East and Central segments and Homebuilding Other. Write-offs of deposits and pre-acquisition costs in the six months ended May 31, 2007 were $29.8 million, $11.2 million, $24.7 million and $4.2 million, respectively, in the Company's Homebuilding East, Central and West segments and Homebuilding Other, compared to $3.2 million, $0.6 million, $8.2 million and $13.3 million, respectively, in the prior year in the Company's Homebuilding East, Central and West segments and Homebuilding Other.

Equity in loss from unconsolidated entities was $40.7 million in the six months ended May 31, 2007, which included $34.0 million of FAS 144 valuation adjustments ($3.8 million, $1.1 million and $29.1 million, respectively, in the Company's Homebuilding East, Central and West segments) to the Company's investments in unconsolidated entities, compared to equity in earnings from unconsolidated entities of $53.0 million last year. Management fees and other income, net, totaled $1.0 million in the six months ended May 31, 2007 (net of $14.3 million of FAS 144 valuation adjustments), compared to $35.8 million in 2006. Minority interest expense, net was $1.4 million and $11.0 million, respectively, in the six months ended May 31, 2007 and 2006. Sales of land, equity in earnings (loss) from unconsolidated entities, management fees and other income, net and minority interest expense, net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.

In February 2007, the Company's LandSource joint venture admitted MW Housing Partners as a new strategic partner. The transaction resulted in a cash distribution to the Company of approximately $700 million. The Company's resulting ownership of LandSource is 16%. If LandSource reaches certain financial targets, the Company will have a disproportionate share of the entity's future positive net cash flow. As a result of the recapitalization, the Company recognized a pretax gain of $175.9 million in 2007 and could potentially recognize an additional $400 million in future years, in addition to profits from its continuing ownership interest.

Financial Services

Operating earnings for the Financial Services segment were $30.1 million in the six months ended May 31, 2007, compared to $45.2 million last year. The decrease was primarily due to $18.6 million of partial write-offs of land seller notes receivable due to the renegotiation of terms, and decreased profitability from the segment's title operations as a result of decreased volume and profit per transaction.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $15.7 million, or 14%, for the six months ended May 31, 2007, compared to 2006. As a percentage of total revenues, corporate general and administrative expenses increased to 1.6% in the six months ended May 31, 2007, from 1.4% in the same period last year, primarily due to lower revenues.

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, www.lennar.com.

Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2006. We do not undertake any obligation to update forward-looking statements.

A conference call to discuss the Company's second quarter earnings will be held at 11:00 a.m. Eastern time on Tuesday, June 26, 2007. The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 320-365- 3844 and entering 876831 as the confirmation number.

                     LENNAR CORPORATION AND SUBSIDIARIES

                  Selected Revenues and Earnings Information
                   (In thousands, except per share amounts)
                                 (unaudited)

                                   Three Months Ended      Six Months Ended
                                         May 31,               May 31,
                                      2007     2006          2007    2006

    Revenues:
     Homebuilding                 $2,741,810  4,415,302  5,404,980  7,524,020
     Financial services              134,133    162,201    263,043    294,142
        Total revenues            $2,875,943  4,577,503  5,668,023  7,818,162

    Homebuilding operating
     earnings (loss)              $ (351,665)   537,413   (211,690)   988,285
    Financial services operating
     earnings                         14,210     34,591     30,079     45,216
    Corporate general and
     administrative expenses          45,817     56,532     92,736    108,423
    Earnings (loss) before
     provision (benefit) for
     income taxes                   (383,272)   515,472   (274,347)   925,078
    Provision (benefit) for
     income taxes                   (139,067)   190,725    (98,765)   342,279

    Net earnings (loss)           $ (244,205)   324,747   (175,582)   582,799

    Average shares outstanding:
     Basic                           157,697    159,571    157,413    158,698
     Diluted                         157,697    162,916    157,413    163,735

    Earnings (loss) per share:
     Basic                        $    (1.55)      2.04      (1.12)      3.67
     Diluted                      $    (1.55)      2.00      (1.12)      3.57

    Supplemental information:
     Interest incurred (1)        $   56,548     63,011    112,269    112,487
     EBIT before FAS 144
      valuation adjustments and
      write-offs of option deposits
      and pre-acquisition costs (2):
      Earnings (loss) before
       provision (benefit) for
       income taxes               $ (383,272)   515,472   (274,347)   925,078
      Interest expense                67,998     72,222    115,360    117,092
      FAS 144 valuation
       adjustments and write-offs
       of option deposits and
       pre-acquisition costs         329,096     47,157    420,728     57,967
       EBIT before FAS 144
        valuation adjustments and
        write-offs of option
        deposits and pre-
        acquisition costs         $   13,822    634,851    261,741  1,100,137

    (1) Amount represents interest incurred related to homebuilding debt,
        which is capitalized to inventories and relieved as cost of sales when
        homes are delivered or land is sold.
    (2) EBIT before FAS 144 valuation adjustments and write-offs of option
        deposits and pre-acquisition costs is a non-GAAP financial measure
        derived by adding back interest expense, FAS 144 valuation adjustments
        and write-offs of option deposits and pre-acquisition costs reflected
        in earnings (loss) before provision (benefit) for income taxes.  This
        financial measure is used in the Company's revolving credit facility's
        covenant calculation.



                     LENNAR CORPORATION AND SUBSIDIARIES

                           Homebuilding Information
                                (In thousands)
                                 (unaudited)

                                     Three Months Ended     Six Months Ended
                                           May 31,               May 31,
                                      2007       2006        2007      2006

    Revenues:
      Sales of homes              $2,687,388  4,023,273  5,309,879  6,943,968
      Sales of land                   54,422    392,029     95,101    580,052
       Total revenues              2,741,810  4,415,302  5,404,980  7,524,020

    Costs and expenses:
      Cost of homes sold           2,494,183  3,076,765  4,755,778  5,269,537
      Cost of land sold              163,219    350,959    230,364    489,878
      Selling, general and
       administrative                395,895    474,791    765,321    854,156
       Total costs and expenses    3,053,297  3,902,515  5,751,463  6,613,571

    Gain on recapitalization of
     unconsolidated entity                 -          -    175,879          -
    Equity in earnings (loss)
     from unconsolidated entities    (26,523)    14,792    (40,728)    52,982
    Management fees and other
     income (expense), net           (12,831)    16,375      1,010     35,808
    Minority interest expense, net       824      6,541      1,368     10,954
    Operating earnings (loss)     $ (351,665)   537,413   (211,690)   988,285



                     LENNAR CORPORATION AND SUBSIDIARIES

                Summary of Deliveries, New Orders and Backlog
                            (Dollars in thousands)
                                 (unaudited)

                                                              At or for the
                                       Three Months Ended    Six Months Ended
                                            May 31,              May 31,
                                         2007     2006        2007     2006

    Deliveries:
      East                              3,065     3,832     5,664      6,404
      Central                           3,267     4,546     6,398      7,954
      West                              2,435     3,798     4,841      6,358
      Other                               801     1,049     1,700      1,808
        Total                           9,568    13,225    18,603     22,524

    Of the total deliveries listed above, 628 and 1,097 represent deliveries
    from unconsolidated entities for the three and six months ended May 31,
    2007, compared to 719 and 1,114 deliveries in the same periods last year.

    New Orders:
     East                               2,668     2,785     4,743      5,868
     Central                            2,636     4,447     5,009      8,066
     West                               1,891     3,507     3,756      5,824
     Other                                861     1,018     1,680      1,792
       Total                            8,056    11,757    15,188     21,550

    Of the total new orders listed above, 382 and 736 represent new orders
    from unconsolidated entities for the three and six months ended May 31,
    2007, compared to 619 and 901 new orders in the same periods last year.

    Backlog - Homes:
     East                                                   3,224      7,172
     Central                                                2,209      4,659
     West                                                   1,906      4,671
     Other                                                    860      1,488
       Total                                                8,199     17,990

    Of the total homes in backlog listed above, 688 represents homes in
    backlog from unconsolidated entities at May 31, 2007, compared to 1,504
    homes in backlog at May 31, 2006.

    Backlog - Dollar Value:
      East                                             $1,095,567  2,607,195
      Central                                             495,664  1,184,992
      West                                                926,283  2,189,609
      Other                                               325,688    545,718
        Total                                          $2,843,202  6,527,514

    Of the total dollar value of homes in backlog listed above, $316,633
    represents the backlog dollar value from unconsolidated entities at May
    31, 2007, compared to $613,370 of backlog dollar value at May 31, 2006.

    Lennar's reportable homebuilding segments and homebuilding other consist
    of homebuilding divisions located in the following states:

    East:     Florida, Maryland, New Jersey and Virginia
    Central:  Arizona, Colorado and Texas
    West:     California and Nevada
    Other:    Illinois, Minnesota, New York, North Carolina and South
              Carolina



                     LENNAR CORPORATION AND SUBSIDIARIES

                              Supplemental Data
                            (Dollars in thousands)
                                 (unaudited)

                                                           May 31,
                                                   2007             2006

      Homebuilding debt                         $2,585,286         2,908,296
      Stockholders' equity                       5,583,555         5,766,219
        Total capital                           $8,168,841         8,674,515
      Homebuilding debt to total capital             31.6%             33.5%

      Homebuilding debt                         $2,585,286         2,908,296
      Less: Homebuilding cash                      234,256           164,157
        Net homebuilding debt                   $2,351,030         2,744,139
      Net homebuilding debt to total
       capital (1)                                   29.6%             32.2%

    (1) Net homebuilding debt to total capital consists of net homebuilding
        debt (homebuilding debt less homebuilding cash) divided by total
        capital (net homebuilding debt plus stockholders' equity).

SOURCE Lennar Corporation

Scott Shipley
Investor Relations of Lennar Corporation
+1-305-485-2054