Looking Forward

(from left): General William Lyon, Chairman and Chief Executive Officer; Wade Cable, President and Chief Operating Officer.

Our ongoing objective is to provide quality and value to our home buyers. We are very proud of our record accomplishments in 2000, and again wish to thank all the employees of William Lyon Homes for "making it happen." We also want to acknowledge and thank other members of the William Lyon Homes team, including our joint venture partners, lenders, suppliers, subcontractors and consultants - each of whom contributed significantly during the year. Additionally, we would like to recognize the invaluable contribution that our new Board of Directors made to the success of the Company this past year. In conclusion, we especially want to thank our stockholders for your continued support and the confidence you have shown in the Company. We look forward to working with and for all of you in the coming years. Sincerely, General William Lyon Chairman of the Board and Chief Executive Officer Wade H. Cable President and Chief Operating Officer March 16, 2001