Background: On August 20, a group of Woodside note holders filed an Involuntary Chapter 11 Petition against the Company. The Company responded on August 27, by filing a Stipulation with the Bankruptcy Court that was agreed upon with both the note holders and lenders. As agreed to in the Stipulation, on September 16, 2008, Woodside Group, LLC and certain of its subsidiaries filed consents to the commencement of Chapter 11cases.

General Woodside Chapter 11 Questions:

1. What is Chapter 11?
Chapter 11 is a legal mechanism that provides a court-supervised way for companies to address their financial challenges in an orderly fashion and allows them to reorganize and become a more vibrant entity, while continuing day-to-day operations. Most importantly, however, it does NOT mean that the Company is going out of business. In other words, we filed for Chapter 11 to preserve and strengthen our business to align with and better compete in the current market.

2. Why is Woodside in Chapter 11?
Historically, Woodside has posted industry-leading profit margins. Unfortunately, the combined pressure of the tightening of the credit market, the devaluation of land and the overall economic downturn has resulted in declining home sales along with a desire by lenders to reduce their exposure to the land development and homebuilding industries. While Woodside continues to deliver industry-leading performance in many markets, these extenuating circumstances require the Company to reorganize its business to align with and better compete in the current market.

3. Does Woodside have enough money to stay in business?
Yes, the Company has plenty of cash on hand to continue its ongoing operations.

4. Does this mean Woodside is going out of business?
Absolutely not. As addressed above, we filed for Chapter 11 to preserve and strengthen our business by addressing our current financial situation.

5. What happens during Chapter 11?
The Chapter 11 filing triggers a "stay," which generally prevents anyone from collecting debts owed by the Company before the petition date, such as loan payments it would ordinarily make to creditors and bondholders, and payments to suppliers for goods or services received before the filing. Chapter 11 permits, and in fact encourages, daily operations to continue. We will continue to serve our customers, pay our employees, and pay for goods and services purchased after the filing date in the ordinary course of business. While operating the business, management will work with the Company’s creditors to finalize a plan to restructure or reduce its debt. The restructuring plan is called a plan of reorganization. When the plan is accepted by the creditors and approved by the Court, it is said to be confirmed and Woodside emerges from Chapter 11 as a reorganized Company.

6. How long will the Woodside be in Chapter 11?
It is too early in the process to provide an exit estimate, but Woodside plans on moving through as quickly as possible.

7. Which entities are included in the filing?
A complete listing of all the companies involved can be found under the Case Information section of the Company’s reorganization website, www.woodside-homes.com, or by visiting the Court Documents section which provides access to all Court filed documents. Additionally, court documents can also be found at the Court’s website, www.cacb.uscourts.gov, through an account obtained from Pacer Service Center at (800) 676-6856.

8. Do companies ever emerge from Chapter 11?
Yes. Many companies, including NVR, Inc. (Ryan Homes), Delta Airlines, Continental Airlines, Texaco, Macy’s, Amerco, Inc. (U-Haul), The Southland Corp (7- Eleven) and K-Mart have successfully reorganized under Chapter 11.

9. Who will run the Company? Will management remain in place?
Woodside management remains in place and is committed to the future success of the business.

10. Where can I find Chapter 11 case information?
Woodside has set up a special Reorganization Information page on the Company website, www.woodside-homes.com, which contains a variety of information on our Chapter 11 restructuring. Woodside has also set up a toll-free information hotline for inquiries at (888) 733-1541. These resources are designed to provide information on the restructuring to employees, suppliers, customers, subcontractors, and any other interested parties seeking general Chapter 11 case information.

11. How can I get a copy of the petitions?
Copies of the Chapter 11 petitions and other documents filed with the Court will be available shortly after the filing at www.Woodside-homes.com. The petitions are also accessible at the Court’s website, www.cacb.uscourts.gov, through an account obtained from Pacer Service Center at (800) 676-6856.