In response to this letter, a Senior Vice President of Richmond American Homes identifying himself by his first name, called and explained the provisions of the Home Warranty Agreement and requested to send people to assess our concerns with the draftiness of the house and report back to him, I agreed. Representatives from the Insulation, Fireplace, and Heating and Cooling subcontractors came.

• The insulation subcontractor found missing insulation in the attic and gaps in the basement. Structural gaps were not worked on as the subcontractor indicated that he will notify Richmond American since it is their problem.

• The fireplace subcontractor indicated that "This problem is with builder/needs to check insulation in exterior wall. Insure to use sealant."

• The HVAC subcontractor noted that the floor of the master bedroom was cold.

•  Nothing is heard from Richmond American on these assessments.

Richmond American Homes Of VA Inc.

Mr. Peter Thompson

President

3701 Pender Drive, Suite 200

Fairfax, VA 22030

March 8, 2001

Dear Mr. Thompson:

Recent actions on part of Richmond American leave us encouraged that it wants to do the right thing, however, as reconstruction work on our home is coming to an end, we bring to your attention two unsettled items, namely draftiness of the house and equitable response, as mentioned in our previous letter to you, dated 21 January 2001.

The construction manager in charge is resigned to the conclusion that by adding insulation the deficiency is remedied. We do not accept that conclusion as we still feel the draft and have measured temperatures as low as 25 °F at the fireplace, and large temperature variances in the attic, basement, master bedroom and bath. The explanation offered runs contrary to my years of formal education and experience in engineering. Also, swaying of the roof and loud rumbling noises, above the master bedroom, in the presence of wind, have been dismissed by the construction manager as a normal occurrence. Be it as it may, a dead-end is reached on this subject with Richmond American. As we stated in the referenced letter, we are not going to pay for Richmond American mistakes, nor are we going to continue to incur undue hardship due to the draftiness of the house. As a result, we are in the process of contracting a home energy consultant for evaluation and repair recommendations, which will be given to a building contractor for implementation. We expect Richmond American to fully cover the expenses.

Also, we expected Richmond American to be responsible and offer equitable adjustment to the undue hardship placed upon us by its inability to perform. What we have in mind is either installation of hardwood on the first floor, or installation of hardwood floor and bookcase in the den, or a finished basement, an indication of accountability and commitment to customer satisfaction. We are insulted by the offer of a "pizza for the inconvenience." In approaching the construction manager on this issue, we were told that Richmond American does not compensate customers as a matter of policy. Are we to understand that Richmond American expects its customers to endure shoddy workmanship, contemptible treatment, damages, and loss of full use of a home for nearly five months in addition to hordes of workers demolishing and reconstructing a house after it had been paid for and occupied?

Mr. Thompson, I know that the general public is unaware of this business policy, what I'm not sure about is whether or not MDC's shareholders know and sanction such business habits. We hope Richmond American is able to see the forest from the trees and do the right thing. Inequitable resolution of these matters will force us to seek legal action. Perhaps we will receive a favorable judgment, perhaps not. Nonetheless, we feel beleaguered and aggrieved and through a public forum we might be closer to an equitable end, no matter what the outcome is.

Sincerely,