Toll Brothers' Record 1st Qtr Net Income Rises 120% To $110.2 Million

Fort Washington, PA




          Record 1st Qtr Contracts Grow 60% To $1.44 Billion
          Record 1st Qtr Revenues Rise 67% To $999.1 Million
      Record 1st Qtr-End Backlog Increases 66% To $4.89 Billion

HORSHAM, Pa., Feb. 23, 2005 (PRIMEZONE) -- Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation's leading builder of luxury homes, today reported record results for earnings, revenues, contracts and backlog for its first quarter ended January 31, 2005. First quarter 2005 earnings per share of $1.33 increased 115% over first quarter 2004.

Robert I. Toll, chairman and chief executive officer, stated: "We are enjoying strong pricing power and increasing profit margins as demand for luxury homes continues to outpace supply."

Joel H. Rassman, chief financial officer, noted: "With the highest backlog in our history, which includes most of this year's projected deliveries, we are raising our guidance on FY 2005 deliveries to a range of between 8,050 and 8,400 homes. Based on the strength of our first quarter earnings and the increase in expected deliveries, we also are raising our earnings guidance: We now believe net income will grow approximately 60% in FY 2005 over FY 2004."

Robert Toll continued: "Continuing strong demand, a recovering economy, our diversified offerings in the luxury move-up, active-adult, and empty-nester urban and suburban niches, and our growing portfolio of well-positioned communities in upscale markets all bode well for our future prospects: Based on these factors, as we have previously discussed, we believe fiscal 2006 will be another record year.

"Increasing numbers of high-income households are competing for a constrained supply of home sites; gaining approvals to build in affluent, well-located neighborhoods is a complex, expensive and lengthy undertaking. In response to the widening gap between tight supply and growing demand, we continue to expand our pipeline of land under development. We now control over 63,000 home sites - a five-to-six year supply based on our historic pace of expansion. With this land, attractive demographics, our diversity of products and our highly respected brand name in the luxury market, we believe we are well-positioned for continued growth in the years ahead."

Toll Brothers' financial highlights for the first quarter ended January 31, 2005:



  -- FY 2005 first-quarter net income of $110.2 million, ($1.33 per
     share diluted), increased 120% over FY 2004 first-quarter net
     income of $50.1 million, ($0.62 per share diluted), the previous
     first-quarter record.

  -- FY 2005 first-quarter revenues of $999.1 million increased 67%
     over FY 2004 first-quarter revenues of $597.9 million. FY 2005
     first-quarter home building revenues of $989.1 million (1,590
     homes), increased 68% over FY 2004's first-quarter home building
     revenues of $589.6 million (1,085 homes), the previous
     first-quarter record. Revenues from land sales totaled $1.2
     million for FY 2005's first quarter, compared to $6.0 million in
     FY 2004's.

  -- In addition, in the Company's fiscal 2005 first quarter,
     unconsolidated entities in which the Company had an interest
     delivered $26.4 million (63 homes) compared to $1.5 million (5
     homes) in the first quarter of fiscal 2004. The Company's share
     of the profits from the delivery of these homes is included in
     'Equity Earnings in Unconsolidated Entities' on the Company's
     Income Statement.

  -- The Company's FY 2005 first-quarter contracts of $1.44 billion
     (2,173 homes), grew by 60% over FY 2004's first-quarter contracts
     of $902.8 million (1,512 homes), the previous first-quarter
     record. In addition, in first quarter 2005, unconsolidated
     entities in which the Company had an interest signed contracts of
     $15.6 million (36 homes).

  -- FY 2005 first-quarter-end backlog of $4.89 billion (7,292
     homes), the highest backlog in the Company's history, increased
     66% over FY 2004's record first-quarter-end backlog of $2.95
     billion (5,079 homes), the previous first-quarter record. In
     addition, at the end of fiscal 2005's first quarter,
     unconsolidated entities in which the Company had an interest had
     a backlog of $65.0 million (147 homes).

  -- The Company raised its guidance on the number of homes it
     expects to deliver in FY 2005: it now expects to deliver between
     8,050 and 8,400 homes, an increase from its previous projection
     range of 7,900 to 8,300 homes. Based on the strength of first
     quarter earnings and the increase in expected deliveries, the
     Company now believes net income will grow approximately 60% in FY
     2005 over FY 2004, compared to its previous guidance of more than
     40% net income growth in FY 2005.

Toll Brothers will be broadcasting live via the Investor Relations section of its website, www.tollbrothers.com, a conference call hosted by chairman and chief executive officer Robert I. Toll at 2:00 p.m. (EST) today, February 23, 2005, to discuss these results and our outlook for the remainder of fiscal 2005. Prior to this conference call, the company intends to file a Form 8-K with the Securities and Exchange Commission containing its guidance for expected results of operations for Fiscal 2005 which will be discussed on the call. To access the call, enter the Toll Brothers website, then click on the Investor Relations page, and select "Conference Calls". Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software. The call can be heard live with an on-line replay which will follow and continue through May 9, 2005.

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 and the Pacific Exchange under the symbol "TOL". The Company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 20 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Maryland, Michigan, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, and 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, home security, landscape, cable T.V. and broadband Internet delivery subsidiaries. The Company also operates its own lumber distribution, and house component assembly and manufacturing operations.

Toll Brothers 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. For more information visit www.tollbrothers.com.

Certain information included herein and in other Company reports, SEC filings, statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning anticipated operating results, financial resources, changes in revenues, changes in profitability, interest expense, growth and expansion, anticipated income from joint ventures and the Toll Brothers Realty Trusts Group, the ability to acquire land, the ability to secure governmental approvals and the ability to open new communities, the ability to sell homes and properties, the ability to deliver homes from backlog, the average delivered price of homes, the ability to secure materials and subcontractors, the ability to maintain the liquidity and capital necessary to expand and take advantage of future opportunities, and stock market valuations. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company reports, SEC filings, statements and presentations. These risks and uncertainties include local, regional and national economic conditions, the demand for homes, domestic and international political events, uncertainties created by terrorist attacks, the effects of governmental regulation, the competitive environment in which the Company operates, fluctuations in interest rates, changes in home prices, the availability and cost of land for future growth, the availability of capital, uncertainties and fluctuations in capital and securities markets, changes in tax laws and their interpretation, legal proceedings, the availability of adequate insurance at reasonable cost, the ability of customers to finance the purchase of homes, the availability and cost of labor and materials, and weather conditions.



                 TOLL BROTHERS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands)

                                        January 31,    October 31,
                                           2005           2004
                                        -----------    -----------
                                        (Unaudited)
 ASSETS

  Cash and cash equivalents             $   485,411    $   580,863
  Inventory                               4,145,727      3,878,260
  Property, construction and
   office equipment, net                     58,176         52,429
  Receivables, prepaid expenses
   and other assets                         154,050        146,212
  Mortgage loans receivable                  74,395         99,914
  Customer deposits held in escrow           69,344         53,929
  Investments in and advances to
   unconsolidated entities                  109,871         93,971
                                        -----------    -----------
                                        $ 5,096,974    $ 4,905,578
                                        ===========    ===========
 LIABILITIES AND STOCKHOLDERS' EQUITY

  Liabilities:
  Loans payable                         $   372,408    $   340,380
  Senior notes                              845,790        845,665
  Senior subordinated notes                 450,000        450,000
  Mortgage company warehouse loan            64,416         92,053
  Customer deposits                         329,150        291,424
  Accounts payable                          192,404        181,972
  Accrued expenses                          555,982        574,202
  Income taxes payable                      178,193        209,895
                                        -----------    -----------
    Total liabilities                     2,988,343      2,985,591
                                        -----------    -----------

  Stockholders' equity:
  Common stock                                  770            770
  Additional paid-in capital                232,728        200,938
  Retained earnings                       1,880,923      1,770,730
  Treasury stock                             (5,790)       (52,451)
                                        -----------    -----------
    Total stockholders' equity            2,108,631      1,919,987
                                        -----------    -----------
                                        $ 5,096,974    $ 4,905,578
                                        ===========    ===========

                 TOLL BROTHERS, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            (Amounts in thousands, except per share data)
                             (Unaudited)

                                                   Quarter ended
                                                     January 31,
                                                   2005       2004
                                                 --------   --------
 Revenues:
  Home sales                                     $989,097   $589,577
  Land sales                                        1,225      5,987
  Equity earnings in unconsolidated entities        1,935        665
  Interest and other                                6,883      1,683
                                                 --------   --------
                                                  999,140    597,912
                                                 --------   --------
 Costs and expenses:
  Home sales                                      685,493    422,428
  Land sales                                          779      5,303
  Selling, general and administrative expenses    107,065     76,653
  Interest                                         21,812     14,558
                                                 --------   --------
                                                  815,149    518,942
                                                 --------   --------
 Income before income taxes                       183,991     78,970
 Income taxes                                      73,798     28,886
                                                 --------   --------
 Net income                                      $110,193   $ 50,084
                                                 ========   ========
 Earnings per share:
  Basic                                          $   1.51   $   0.68
                                                 ========   ========
  Diluted                                        $   1.33   $   0.62
                                                 ========   ========
 Weighted average number of shares:
  Basic                                            72,826     73,839
  Diluted                                          83,042     80,819


                                     UNITS             $ (MILL)
                                    1st Qtr.           1st Qtr.
 CLOSINGS                        2005     2004      2005       2004
 -----------------------------   -----    -----    -------    -------
 Northeast
  (CT, MA, NH, NJ, NY, RI)         229      183      123.3      104.6
 Mid-Atlantic (DE, MD, PA, VA)     663      405      386.9      201.4
 Midwest      (IL, MI, OH)          95       72       57.0       40.9
 Southeast    (FL, NC, SC, TN)     155      121       84.4       53.7
 Southwest    (AZ, CO, NV, TX)     248      149      155.8       81.8
 West Coast   (CA)                 200      155      181.7      107.2
                                 -----    -----    -------    -------
                                 1,590    1,085      989.1      589.6
 Unconsolidated entities            63        5       26.4        1.5
                                 -----    -----    -------    -------
                                 1,653    1,090    1,015.5      591.1
                                 =====    =====    =======    =======
 CONTRACTS
 -----------------------------
 Northeast
 (CT, MA, NH, NJ, NY, RI)          319      222      200.6      137.9
 Mid-Atlantic (DE, MD, PA, VA)     767      527      471.4      283.8
 Midwest      (IL, MI, OH)         112      120       78.0       71.7
 Southeast    (FL, NC, SC, TN)     381      174      205.4       85.4
 Southwest    (AZ, CO, NV, TX)     366      233      254.3      143.5
 West Coast   (CA)                 228      236      233.4      180.5
                                 -----    -----    -------    -------
                                 2,173    1,512    1,443.1      902.8
 Unconsolidated entities            36        5       15.6        1.6
                                 -----    -----    -------    -------
                                 2,209    1,517    1,458.7      904.4
                                 =====    =====    =======    =======
 BACKLOG
 -----------------------------
 Northeast
 (CT, MA, NH, NJ, NY, RI)        1,118      971      676.8      552.7
 Mid-Atlantic (DE, MD, PA, VA)   2,349    1,796    1,456.8      919.5
 Midwest      (IL, MI, OH)         463      342      305.4      194.0
 Southeast    (FL, NC, SC, TN)     952      464      584.5      250.1
 Southwest    (AZ, CO, NV, TX)   1,469      793      948.2      458.5
 West Coast   (CA)                 941      713      916.2      570.3
                                 -----    -----    -------    -------
                                 7,292    5,079    4,887.9    2,945.1
 Unconsolidated entities           147       15       65.0        4.8
                                 -----    -----    -------    -------
                                 7,439    5,094    4,952.9    2,949.9
                                 =====    =====    =======    =======

            

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