HUNTINGDON VALLEY, Pa., (Hanley-Wood News Service) - Toll Brothers, Inc., (NYSE: TOL), the nation's leading builder of luxury homes, today reported its ninth consecutive year of record earnings, its tenth consecutive year of record revenues and its eleventh consecutive year of record contracts for its fiscal year ended October 31, 2001. FYE 2001 earnings of $213.7 million ($5.52 per share diluted) rose 46% compared to FYE 2000's record total and have more than doubled in the past two years. Fourth quarter net income of $68.5 million ($1.84 per share diluted) grew 17% compared to FY 2000's record fourth quarter. Fourth quarter earnings and revenues were the highest for any quarter in Toll Brothers' history. Robert I. Toll, chairman and chief executive officer, stated: ''Since last March, when experts now tell us the recession began, both the home building industry in general, and our company in particular, have demonstrated great resiliency. We hope and believe that investors will start to recognize that home building is now a much more stable, less cyclical industry than a decade ago. Our industry is dominated by well-managed multi-billion dollar firms who can be relied upon to navigate through difficult periods in the economy.''

''We have demonstrated much greater consistency in earnings growth than most firms in the S&P 500, whose average price/earnings multiple of 22 is nearly triple that of the major home builders. Our industry's cycles are moderated by a highly liquid home mortgage market and restrictive land approval processes that limit lot availability. Perhaps, as this stability becomes better understood, our industry will begin to receive higher valuations and earnings multiples that better reflect our strong, reliable performance.''

''Our industry continues to evolve in favor of the major home builders. The regulatory process for gaining land approvals is becoming more complex and more expensive. Lenders are reducing capital available to the smaller, private builders and customers are placing greater importance on their builder's reputation and financial health. As strong demographics keep demand ahead of regulation-constrained supply, we believe the large public builders should continue to gain market share from their less well-capitalized competitors whether the economy rebounds quickly or recovers more slowly.''

''In the immediate aftermath of the attacks of September 11th, our business slowed significantly as consumer confidence and the stock market both fell. However, in recent weeks, our optimism for 2002 has been rekindled as we've begun to see renewed vigor in the luxury market. Although results have been volatile from week to week and market to market, we have seen signs of strength in nearly all of our territories. What began as a gradual but choppy recovery has started to accelerate: our deposits per community in the last four weeks were 20% ahead of last year's pace.''

''Since we sign contracts with buyers, then build their homes, we can reasonably predict our next six to nine months' revenues. Based on our year-end backlog, which was down 1.6% compared to one year ago, and current contracts signed, fiscal 2002's first three quarters, while probably not another record, should be very strong. 2002's fourth quarter results will depend on the pace of contracts signed this quarter, which appears to be strengthening.''

''In 2002, we plan to continue to pursue our strategy of growth and product diversification. We ended fiscal 2001 with 155 selling communities compared to 146 at FYE 2000 and expect to have open 175 selling communities by FYE 2002. Assuming the economy continues to recover, with more selling communities, 2003 should be outstanding as we believe we will be in an excellent position to continue our dynamic growth of the past decade.''

Toll Brothers' fourth quarter and FY 2001 results are as follows:

-- Record Fiscal 2001 earnings of $213.7 million ($5.52 per share

diluted) eclipsed by 46% 2000's previous record earnings of

$145.9 million ($3.90 per share diluted). Record fourth quarter

earnings of $68.5 million ($1.84 per share diluted), the company's

highest single total ever, grew 17% compared to $58.4 million ($1.52

per share diluted) in fourth quarter 2000, the previous fourth

quarter record.

-- Record Fiscal 2001 revenues of $2.23 billion exceeded by 23% 2001's

previous record revenues of $1.81 billion. Homebuilding revenues of

$2.18 billion (4,358 homes) were up 24% compared to the Company's

previous record of $1.76 billion (3,945 homes) set in 2000.

Additionally, the Company produced revenues from land sales of

$27.5 million in 2001 compared to $38.7 million in 2000.

-- Record fourth quarter 2001 revenues of $655.8 million, the highest

for any quarter in the Company's history, rose 7% compared to

$614.8 million in fiscal 2000. Homebuilding revenues of

$651.1 million (1,279 homes) were up 8% versus the previous fourth

quarter record of $602.6 million (1,277 homes), set in 2000.

Additionally in the fourth quarter, the Company produced revenues of

$2.4 million from land sales compared to $8.7 million in 2000.

-- The Company's backlog at year-end 2001 of $1.41 billion (2,727 homes)

decreased 1.6% compared to the year-end record of $1.43 billion

(2,779 homes) at FYE 2000. This backlog represents 65% of fiscal

2001's home building revenues, providing a strong start for fiscal


-- Record fiscal 2001 signed contracts of $2.17 billion (4,366 homes),

were up 1.1% compared to $2.15 billion (4,418 homes) in fiscal 2000,

the previous record. Signed contracts for the fourth quarter of

$488.7 million (970 homes) declined 15% compared to the fourth

quarter record of $575.6 million (1,096 homes) set in 2000.

-- During FY 2001 the Company repurchased approximately 2.1 million

shares of its stock including approximately 1.0 million shares in

fourth quarter 2001.