Settlement of Class Action Lawsuit Against Beazer Homes

Atlanta, GA: A settlement has been preliminarily approved by a federal court in Atlanta in a consolidated class action lawsuit against Beazer Homes USA, Inc. ("Beazer Homes") and certain of its current and former directors and officers (collectively, "Defendants"), alleging breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974 ("ERISA"), in connection with the Plan. In particular, the lawsuit claimed that Defendants breached their fiduciary duties under ERISA by continuing to allow investment of the Plan's assets in the Beazer Stock Fund during the Class Period. Defendants deny any liability in this Action. Both sides agreed to the Settlement to avoid the cost and risk of further litigation and/or to provide a recovery to the members of the Settlement Class.

The proposed Settlement provides for a payment of $5.5 million to settle all claims against Defendants. The Settlement proceeds, minus Court-approved fees and expenses described in the Stipulation (which include attorneys' fees and litigation expenses, Case Contribution Awards to the Named Plaintiffs who brought the lawsuit, and taxes and other costs related to the Settlement) will be allocated to members of the Settlement Class whose Plan accounts suffered alleged losses as a result of investing in the Beazer Stock Fund.

The terms of the Settlement are contained in the Stipulation and Agreement of Settlement ("Stipulation"), dated July 19, 2010, a copy of which is available at www.BeazerERISAsettlement.com.

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Published on Aug-30-10