Summary of ORLEANS HOMEBUILDERS INC

Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On May 13, 2009, Orleans Homebuilders, Inc. (the "Company") issued a press release announcing its financial results for the three and nine months ended March 31, 2009. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Current Report on Form 8-K and the exhibit attached hereto is being furnished and shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Use of Non-GAAP Financial Information

To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company uses the non-GAAP measure of adjusted EBIDTA for the three and nine months ended March 31, 2009 and March 31, 2008. Adjusted EBITDA represents net earnings before inventory impairments, land sale impairments, the write-off of abandoned projects and other pre-acquisition costs, impairment of goodwill, severance charges, tax valuation allowances, stock option expense, interest expense, previously capitalized interest amortized to residential properties cost of sales, income taxes, depreciation, amortization, loss from discontinued operations and extraordinary items. In addition, the Company uses the non-GAAP measure of adjusted net income and adjusted earnings per share for the three and nine months ended March 31, 2009 and March 31, 2008. Adjusted net income and adjusted earnings per share represents net income and earnings per share excluding the effects of charges for inventory impairments, land sale impairments, write-off of abandoned projects and other pre-acquisition costs, loss from discontinued operations, severance charges and tax valuation allowances.

The Company's management reviews these non-GAAP measures internally to evaluate the Company's performance and manage its operations. In addition, since the Company has historically provided non-GAAP results and guidance to the investment community, the Company believes that the inclusion of adjusted EBITDA provides consistent and comparable measures to help investors understand the Company's current and future operating results. The non-GAAP measures included in the press release attached hereto as Exhibit 99.1 have been reconciled to the comparable GAAP measures as required under SEC rules regarding the use of non-GAAP financial measures. The Company urges investors to carefully review the GAAP financial information included as part of the Company's Annual Report on Form 10-K/A, Quarterly Reports on Form 10-Q, and quarterly earnings releases.