SCOTTSDALE, Ariz., Dec. 24, 2008 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, announced today that it has taken a number of steps designed to preserve the long term value to the Company of certain tax assets primarily associated with net operating loss carryforwards ("NOLs") and built in losses under Section 382 of the Internal Revenue Code. At September 30, 2008, the Company estimated that it had $137 million in deferred tax assets (before reserves) generated by approximately $360 million in net operating losses through September 30, 2008.

The Company's ability to use NOLs and built in losses is limited if there is an "ownership change" under tax law. In general, ownership changes relate to the accumulation of stock by 5-percent (or more) stockholders, measured over a given period of time (generally a three year rolling period.)

To reduce the risk of losing or limiting the long term value of its NOLs and built in losses, the Company has taken the following steps:

  1.  Adopted a Bylaw provision restricting transfers or issuances
      of stock that would create more than 4.9-percent Stockholders,
      or that would change the ownership of such holders.  These
      restrictions allow for the Company's Board of Directors to
      approve exceptions to these restrictions that are in the best
      interests of the stockholders. The restrictions will terminate
      when the Company's tax assets are utilized or expire, or when
      the Board deems appropriate.
  2.  Approved, subject to stockholder approval, a provision in its
      Articles of Incorporation that creates the same transfer
      restrictions, and exception and termination provisions.
  3.  Determined to hold a Special Meeting of Stockholders on
      February 16, 2009, or as soon thereafter as practicable, to
      vote on the amendment of the Articles of Incorporation. The
      record date for shareholders to vote at this meeting is
      January 5, 2009.

Larry Seay, Chief Financial Officer of the Company, stated, "We believe that we are acting in the best interests of our shareholders to preserve the value of our deferred tax assets, and retain our ability to use accumulated net operating losses to offset future income and taxes. Without these changes, a potential unintended consequence of changes in the stock ownership of Meritage Homes investors could limit our potential realization of deferred tax assets. The steps we have adopted are intended to allow stockholders to accumulate stock with Board approval, while preserving our tax assets with certain transfer restrictions."

About Meritage Homes Corporation

Meritage Homes Corporation (NYSE:MTH) builds primarily single-family homes across the southern and western United States under the Meritage, Monterey and Legacy brands.