Centex Golf Course Construction

Business Venture Centex Golf Course Construction will be spanning the country designing and constructing golf courses for our parent company to expand into luxurious golf communities. This new division will include all aspects of golf course development, and will help Centex grow into new markets.

Mission Centex Golf Course Construction is a construction company that specializes in building golfer-friendly courses in residential communities. We are dedicated to serving golfers within these communities by providing high quality golf facilities to players of all ages and abilities and enhancing their enjoyment of the game.

Company Overview Centex Golf Course Construction provides full services for the coordination and execution of all phases of golf course construction. Areas of expertise include pond construction, all quantities of cut and fill, U.S.G.A. green construction, shaping of features, laser drainage and irrigation, and finishing of site for seeding. To ensure scheduled progress during construction, we provide every project with highly qualified and experienced site supervision. Our professional personnel possess solid backgrounds in golf course construction, maintenance, installation and design of drainage, and irrigation installation which makes it possible for us to provide a most complete service.

Area of Operation Headquarters will be located in Orlando, FL New Golf Course Construction will be a national endeavor, focusing on coastal areas

Project Funding Funding for Centex Golf Construction will be provided by Centex Corp. Course costs will vary greatly depending on location Typical Centex Golf Course Construction will range from $35,000-$100,000 per hole

Course Cost Breakdown Centex Golf Course Construction

Why Golf Courses? Many developers of golf communities have built courses to satisfy municipal or state requirements for open space in their housing developments. Courses will significantly increase the price of the surrounding real estate market, bringing a larger profit margin to Centex Corp. Growing demand for land and homes located on golf courses

Example Project Average course construction will fall between 2.5 million and 3.5 million dollars For an average area in Florida, Building 2 identical houses with one built on a golf course and one that is not on a course the price difference will range between thousand dollars. We will be planning around 250 houses located on each course, which will bring in an extra million dollars. After realizing the actual cost to build the course, Centex will then see an additional million dollars on each development

Steps for Market Analysis & Customer Demographics 1. Site Inspection: Evaluate the suitability of the subject site from a market perspective, evaluating factors such as accessibility, visibility from major roads, and the physical characteristics of the site. 2. Local Area Overview: Examine the local area, focusing on factors that could impact demand for the subject project, such as climate, geography, existing amenities (such as shopping, dining, medical, schools, recreation options, etc.), visitation, visitor profiles, seasonality, resident demographics, existing residential market conditions, etc.

Steps for Market Analysis & Customer Demographics 3. Examination of Existing Relevant Resorts/Residential Communities/Golf Courses/Hotels: Depending on the land uses in question, identify relevant projects and completes detailed overviews of the relevant properties, focusing on operating performance, sales performance, buyer profiles, visitation patterns, seasonality, architectural styles, recreation amenities, etc. Information for this task is typically gathered through site inspections and detailed, face-to-face interviews with resort managers, directors of golf, directors of sales, and other key staff. Although this research is time-consuming, we view it as an absolutely critical component of any market analysis. 4. Investigation of Relevant Proposed Projects: In order to ascertain the likely future competitive landscape for our project, we will do a complete comprehensive investigation of relevant proposed projects.

Steps for Market Analysis & Customer Demographics 5. Analysis of Demand: In order to gauge the depth and profile of market support for golf courses in residential communities or other project types, Centex Golf Course Construction will need complete detailed overviews of relevant source markets, examining demographic factors and local economic conditions, and then typically performs quantitative analyses of potential demand by market segment, providing benchmarks from which to evaluate the likely future supply-and-demand relationship. 6. Formulation of Development Recommendations and Financial Analysis: After conducting in-depth research, Centex Golf Course Construction will use the information to work with the golf course architect to formulate comprehensive development and market positioning recommendations for the project, based on a detailed, pro forma financial analysis. For each project, we construct a customized financial model, and then test various market positionings, phasing options, and development options to determine which development program and market positioning appears most capable of meeting our objectives.

Services Provided By Centex Golf Course Construction Complete design team Site Assessment Feasibility Studies Conceptual and Master Planning Detailed Design and Documentation Construction Programming Cost Analysis Construction Progress Inspections Post Construction Consultation Clubhouse / Pro Shop / Maintenance Centre design and documentation Remodeling and reconstruction

Competitors Agri-Scape Golf Course Construction, Inc. Ames Construction, Inc. Aspen Golf Course Construction & Renovation, LLC Benson Construction Company, Inc. Cook & Solis Construction Inc. The Golf Group, Inc Wadsworth Golf Construction Company

Parent Company Financials Key Numbers Company Type Public (NYSE: CTX) Fiscal Year-End March2006 Sales (mil.) $14, Year Sales Growth 11.5% 2006 Net Income (mil.) $1, Year Net Income Growth27.5%2005 Employees17,134

Management Structure Field Manager Architect/ Designer Division President Purchasin g and estimating Field Manager Project Manager

Future Ventures Expand Centex’s Opportunities in the booming Ice Golf industry