COMPANY DESCRIPTION
Homex is a vertically integrated homebuilding company predominantly focused on the affordable/entry-level housing market, which has experienced dramatic demand and growth as a result of its efficient capitalization through various government-led finance programs. From building 5,000 homes per year at the time of EI’s initial investment, the Company has become the largest homebuilder in Mexico, building and selling approximately 60,000 homes annually as of 2011. Homex is one of the most geographically diverse homebuilders in Mexico with operations in 34 cities and 21 states. EI led the Company’s 2004 initial public equity offering and dual listing on the Mexican Bolsa (BMV:HOMEX) and New York Stock Exchange (NYSE:HXM), where the Company was the first and remains the only listed Mexican homebuilder. EI monetized its ownership interest in Homex from 2006 to 2008 through organized sales to the public market and to the Company’s founders.

MARKET OVERVIEW
A strong combination of demographic and macroeconomic factors has facilitated the continued boom in the Mexican housing market. The 6-million-home deficit continues to grow by an additional 750,000 new units annually, as measured by household formation, and currently, only 350,000-400,000 new homes are built per year. Increasing purchasing power along with the country's strong home ownership culture underlie this ongoing demand. Currently there are 3.2 million Mexicans who qualify for mortgage loans, with wages above the average monthly minimum. The Mexican government has made housing a top priority, driving efforts to build 750,000 homes annually by 2006, equal to demand and nearly double current production.