NEWS RELEASE

Contacts: Joseph A. Santangelo – Chief Financial Officer
Orleans Homebuilders, Inc. (215) 245-7500
(www.orleanshomes.com)

For Immediate Release:

Orleans Homebuilders Reports Results
For Third Quarter, Raises 2004 Guidance and
Issues 2005 Guidance

Bensalem, Pennsylvania, May 10, 2004:

       Orleans Homebuilders, Inc. (ASE:OHB) is a residential homebuilder with operations in Pennsylvania, New Jersey, Virginia, North Carolina, South Carolina and Florida.

Financial Highlights for the Quarter Ended March 31, 2004:
•	Completion of an offering of 2,000,000 newly issued shares of common stock resulting in approximately $46,000,000 in net proceeds.
•	Fiscal year 2004 third quarter earnings of $.45 per diluted share increased 80% compared with $.25 per diluted share for the prior year period.
•	Fiscal year 2004 third quarter EBITDA(1) increased 67% to $15,020,000 compared with $8,989,000 for the prior year period.
•	Fiscal year 2004 third quarter new orders increased 40% to $182,949,000 (542 homes) compared with $130,383,000 (386 homes) for the prior year period.
•	The backlog at March 31, 2004 increased 53% to $436,710,000 (1,250 homes) compared with $285,223,000 (778 homes) at March 31, 2003.
•	Fiscal year 2004 third quarter residential property revenue increased 49% to $114,563,000 (371 homes) compared with $76,991,000 (258 homes) for the prior year period.
•	The Company currently controls approximately 12,218 building lots.
Financial Highlights for the Nine Months Ended March 31, 2004:
•	Fiscal year 2004 third quarter year-to-date earnings of $1.36 per diluted share increased 40% compared with $.97 per diluted share for the prior year period.
•	Fiscal year 2004 third quarter year-to-date EBITDA(1) increased 32% to $43,548,000 compared with $32,930,000 for the prior year period.
•	Fiscal year 2004 third quarter year-to-date new orders increased 35% to $443,708,000 (1,332 homes) compared with $328,378,000 (969 homes) for the prior year period.
•	Fiscal year 2004 third quarter year-to-date residential property revenue increased 34% to $334,427,000 (1,132 homes) compared with $249,219,000 (838 homes) for the prior year period.

Fiscal Year 2004 – 2005 Guidance:
•	The Company raises its fiscal year ending June 30, 2004 diluted EPS guidance to $2.10 based on 17.3 million diluted shares and its previous net income guidance by approximately 5%.
•	The Company issues its fiscal year ending June 30, 2005 diluted EPS guidance of $2.38 to $2.43 based on 18.8 million diluted shares.
Additional recognition:
•	For the second consecutive year Orleans Homebuilders was ranked by Forbes Magazine as one of America’s Ten Best Small Companies.
•	For the second consecutive year Orleans Homebuilders was listed by Fortune Magazine as one of Fortune’s 100 Fastest Growing Companies.
•	For the third consecutive year Masterpiece Homes won the J.D. Power & Associates award for Highest Owner Satisfaction Among new Home Builders in the Orlando Area.

       “We are pleased with our new orders, revenue and earnings growth in the first nine months of fiscal year 2004. Additionally, we are pleased with our overall continued strong performance, our ability to obtain additional desirable building lots and our ability to successfully expand into new markets with a variety of products and a wide range of price points,” commented Jeffrey Orleans, Chairman and CEO. “We believe that our increase in capital, and our broad range of home designs and price points allows us to capitalize on opportunities and favorable economic and demographic trends within our industry. As we look forward our focus will be on continued revenue and earnings growth and the resulting value we are creating for our shareholders.”

       Orleans Homebuilders will hold its quarterly conference call to discuss third quarter results on Tuesday, May 11, 2004, at 10:30 a.m. Eastern Time. This call is being webcast by CCBN and can be accessed at Orleans Homebuilders' web site at www.orleanshomes.com under “Investor Relations”. The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). A replay of the conference call will be available later that day on the Company’s website at www.orleanshomes.com. A copy of this press release, including the Company’s results of operations for the three and nine month periods ended March 31, 2004 to be discussed during the conference call, is available at the Company’s website, www.orleanshomes.com, under “Investor Relations”.

       About Orleans Homebuilders, Inc.

       Orleans Homebuilders, Inc. develops, builds and markets high-quality single-family homes, townhouses and condominiums. The Company serves a broad customer base including first-time, luxury, move-up, empty nester and active adult homebuyers. The Company currently operates in the following nine distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. To learn more about Orleans Homebuilders, please visit www.orleanshomes.com.

EBITDA Reconciliation⁽¹⁾:

	Three Months Ended 3/31/04	Three Months Ended 3/31/03	Nine Months Ended 3/31/04	Nine Months Ended 3/31/03
Net income	$7,819,000	$4,088,000	$22,802,000	$16,075,000
Income tax expense	5,072,000	3,092,000	14,778,000	10,440,000
Interest	1,939,000	1,709,000	5,484,000	6,115,000
Depreciation	190,000	100,000	484,000	300,000
EBITDA	$15,020,000	$8,989,000	$43,548,000	$32,930,000

(1) Pursuant to the requirements of Regulation G, we have provided a reconciliation of EBITDA, a non-GAAP financial measure, to the most directly comparable GAAP financial measure. EBITDA represents net earnings before interest expense, interest amortized to cost of sales, income taxes, depreciation, amortization, and extraordinary items. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excluded amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet, or statement of cash flows of the issuer; or includes amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States of America.

Certain information included herein and in other Company statements, reports and SEC filings is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning anticipated earnings per share, operating results, financial resources, pace of sales, growth and expansion. 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 statements, reports and SEC filings. For example, there can be no assurance that the current sales pace can continue in the absence of an improvement in the current general economic environment. These risks and uncertainties include local, regional and national economic conditions, 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, the availability and cost of labor and materials, our dependence on certain key employees and weather conditions.

Orleans Homebuilders, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts
(Unaudited)

			Three Months Ended March 31,				Nine Months Ended March 31,
			2004		2003		2004		2003
Earned revenues
	Residential properties	$	114,563	$	76,991	$	334,427	$	249,219
	Land sales and other income		1,383		1,100		4,669		3,440
			115,946		78,091		339,096		252,659
Costs and expenses
	Residential properties		86,940		59,835		256,919		193,093
	Land sales and other expense		755		651		3,469		2,474
	Selling, general and administrative		15,085		10,274		40,643		30,343
	Interest		275		151		485		234
			103,055		70,911		301,516		226,144
Income from operations before income taxes			12,891		7,180		37,580		26,515
Income tax expense			5,072		3,092		14,778		10,440
Net income		$	7,819	$	4,088	$	22,802	$	16,075
Net income			7,819		4,088		22,802		16,075
Preferred dividends			—		53		104		158
Net income available for common shareholders		$	7,819	$	4,035	$	22,698	$	15,917
Earnings per share:
	Basic	$	0.49	$	0.32	$	1.64	$	1.29
	Diluted	$	0.45	$	0.25	$	1.36	$	0.97
Weighted average number of shares:
	Basic		15,964		12,795		13,878		12,322
	Diluted		17,209		16,647		16,867		16,622
Supplemental information:
	EBITDA(1):
	Net income	$	7,819	$	4,088	$	22,802	$	16,075
	Income tax expense		5,072		3,092		14,778		10,440
	Interest		1,939		1,709		5,484		6,115
	Depreciation and amortization		190		100		484		300
	EBITDA	$	15,020	$	8,989	$	43,548	$	32,930

(1) EBITDA is a non-GAAP financial measure representing net earnings before interest expense, interest amortized to cost of sales, income taxes, depreciation, amortization and extraordinary items.

Orleans Homebuilders, Inc
Summary of Deliveries, New Orders and Backlog by Region
(Dollars in thousands)
(Unaudited

				Three Months Ended March 31,				Nine Months Ended March 31,
				2004		2003		2004		2003
DELIVERIES
	Northern Region (NJ, PA)
		Homes		133		147		450		537
		Dollars	$	57,798	$	46,392	$	175,335	$	164,768
		Average Sales Price	$	435	$	316	$	390	$	307
	Southern region (NC, SC, VA)
		Homes		131		111		376		301
		Dollars	$	41,071	$	30,599	$	116,827	$	84,451
		Average Sales Price	$	314	$	276	$	311	$	281
	Florida region (FL) (1)
		Homes		107		—		306		—
		Dollars	$	15,694	$	—	$	42,265	$	—
		Average Sales Price	$	147	$	—	$	138	$	—
	Total
		Homes		371		258		1,132		838
		Dollars	$	114,563	$	76,991	$	334,427	$	249,219
		Average Sales Price	$	309	$	298	$	295	$	297
NEW ORDERS
	Northern Region (NJ, PA)
		Homes		218		201		488		545
		Dollars	$	95,340	$	74,077	$	218,096	$	201,354
		Average Sales Price	$	437	$	369	$	447	$	369
	Southern region (NC, SC, VA)
		Homes		200		185		517		424
		Dollars	$	67,034	$	56,306	$	175,519	$	127,024
		Average Sales Price	$	335	$	304	$	339	$	300
	Florida region (FL) (1)
		Homes		124		—		327		—
		Dollars	$	20,575	$	—	$	50,093	$	—
		Average Sales Price	$	166	$	—	$	153	$	—
	Total
		Homes		542		386		1,332		969
		Dollars	$	182,949	$	130,383	$	443,708	$	328,378
		Average Sales Price	$	338	$	338	$	333	$	339
				At March 31, 2004		At March 31, 2003
BACKLOG
	Northern Region (NJ, PA)
		Homes		500		475
		Dollars	$	232,695	$	187,210
		Average Sales Price	$	465	$	394
	Southern region (NC, SC, VA)
		Homes		431		303
		Dollars	$	154,525	$	98,013
		Average Sales Price	$	359	$	323
	Florida region (FL) (1)
		Homes		319		—
		Dollars	$	49,490	$	—
		Average Sales Price	$	155	$	—
	Total
		Homes		1,250		778
		Dollars	$	436,710	$	285,223
		Average Sales Price	$	349	$	367

(1)  Information on deliveries and new orders is for the period beginning July 28, 2003, the date the Company entered this market through its acquisition of Masterpiece Homes, through March 31, 2004.

Orleans Homebuilders, Inc
Selected Balance Sheet Data
(in thousands)
(Unaudited)

		March 31, 2004		December 31, 2003
Residential properties	$	165,614	$	150,021
Land and improvements		121,949		116,776
Land deposits and costs of future developments		29,837		34,109
Total assets		472,584		366,216
Mortgage obligations secured by real estate		143,632		169,302
Notes payable		3,841		2,995
Shareholders' equity		159,649		105,669

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