Dominion Homes, Inc. (Dominion), incorporated in 1993, is a builder of homes in Central Ohio (primarily the Columbus Metropolitan Statistical Area) and in the Louisville and Lexington, Kentucky markets. The Company's customer-driven focus targets entry-level and move-up home buyers. Dominion offers five distinct series of homes: Independence Series, Metropolitan Series, Millennium Series, Tradition Series and Grand Reserve Series. These series of homes are differentiated by price, size, standard features and available options. Dominion sells its homes principally through the use of onsite, fully furnished and landscaped model homes decorated to emphasize design features and choices available to customers. At December 31, 2005, the Company had 75 model homes. In addition, Dominion sells its homes in Central Ohio through the Dominion HomeStore. Through its mortgage financing services subsidiary, Dominion Homes Financial Services, Ltd. (DHFS), the Company assists many of its customers to obtain mortgages to finance the purchase of their homes. DHFS does not provide mortgage financing to its customers and, consequently, does not bear the interest rate and market risks associated with making mortgage loans. Homes The Company's communities offer customers a range of choices in neighborhoods and schools. Many of its communities offer bicycle and jogging trails, walking paths, park areas, playgrounds and swimming facilities. The Millennium Series and Tradition Series homes generally include a front porch, high performance exterior, two-car garage, cathedral ceiling, air conditioning, all major kitchen appliances and fully sodded yard. Dominion uses brand name components in constructing all of its homes. These components include Andersen wood windows, the Kohler family of bathroom and kitchen fixtures, Carrier natural gas furnaces, Armstrong flooring, General Electric appliances, Wilsonart decorative laminate and Aristokraft cabinets. The Independence Series, a neo-traditional housing concept, targets entry-level home buyers. Dominion offer nine home designs in this series, ranging in size from approximately 1,000 to 1,900 square feet. This series consists of detached, single-family homes located in communities with relatively narrow streets, garage access through alleys in the rear and the look, feel and privacy of homes in older, traditional neighborhoods. Dominion has established Independence Series communities both as single-family homes in condominium communities and as fee-simple communities under provisions of the City of Columbus' zoning code for traditional neighborhood developments. The Independence Series homes represented approximately 36% of the Company's home deliveries in 2005. The Metropolitan Series, which the Company formally introduced in mid 2005, targets the young, single home buyer. Dominion offers six attached two-story townhome designs, ranging in size from approximately 1,600 to 2,300 square feet, in maintenance-free communities. The Company offers the Metropolitan Series in three communities. The Metropolitan Series homes represented approximately 1% of the Company's home deliveries in 2005 due to its late introduction in the year. The Millennium Series, the product of a re-design of the Company's Celebration Series, targets the entry-level and first-time move-up home buyers. Dominion offers 18 single-family traditional home designs in this series, ranging in size from approximately 1,400 to 2,400 square feet. The Company's Millennium Series and the Company's Celebration Series homes represented approximately 51% of the Company's home deliveries in 2005. The Company still offers the Celebration Series in select communities. The Company's Tradition Series, with styles ranging from contemporary to traditional designs, targets move-up home buyers. The Company offers 14 single-family home designs in the Company's Tradition Series, ranging in price from approximately $200,000 to more than $360,000 and in size from approximately 2,100 to 3,500 square feet. These home designs incorporate many