Restated Consolidated Financial Statements
Years ended December 31, 2010, 2009 and 2008

Desarrolladora Homex, S.A.B. de C.V. and Subsidiaries
Notes to restated consolidated financial statements
for the years ended December 31, 2010 and 2009
(Figures in thousands of Mexican pesos (Ps.), except as otherwise indicated)

20. Segment reporting
The Company generates separate reports by affordable entry-level, middle-income and other. The following segment reporting information is presented according to the information used by management for decision making purposes. The Company segregates the financial information by segments, (affordable entry-level, middle-income and other) considering the operational and organizational structure of the business despite its geographical localization (which was established by house models as explained in the next paragraph), according to the provisions of Bulletin B-5 Segment reporting.

General description of the products or services
Mexico’s developer-built housing industry is divided into three segments according to cost: affordable entry-level, middle-income, and residential. The prices of affordable entry-level segment range between Ps. 195 and Ps. 540; those of the middle-income segment are between Ps. 541 and Ps. 1,885 and those of the residential segment are above Ps. 1,885. The Company’s focus is to provide affordable entry-level and middle-income housing for its customers. Therefore, the operating segments that are presented in detail are the affordable entry-level and the middle-income segments, in conformity with guidelines of Bulletin B-5.

Affordable entry-level developments range in size from 500 to 20,000 homes and are developed in stages typically comprising 300 homes each. During 2010, 2009 and 2008, affordable entry-level homes had an average price of approximately Ps. 338, Ps. 326 and Ps. 297, respectively. A typical affordable entry-level home consists of a kitchen, living-dining area, one to three bedrooms, and one bathroom.

Middle-income developments range in size from 400 to 2,000 homes and are developed in stages typically comprising 200 homes each. During 2010, 2009 and 2008, middle income homes had an average price of approximately Ps. 1,086, Ps. 978 and Ps. 958, respectively. A typical middle-income home consists of a kitchen, dining room, living room, two or three bedrooms, and two bathrooms.

Other includes revenues from construction services to government, sales and services to third parties and the tourism housing division.

The following table shows the operating results by each segment identified as of December 31, 2010, 2009 and 2008:



The income from operations caption in the tables above were calculated as the total revenue from each segment, less allocated total consolidated operating cost and expenses. The allocation of total consolidated operating costs and expenses into the segments was based on the percentage that the sales in each segment represent of the total consolidated sales. Depreciation and amortization expense is allocated to each segment using the same basis as operating costs and expenses.

The Company has domestic operations in Mexico and international operations in Brazil and India. Mexican operating segments are disclosed above. India assets and operations are immaterial as of December 31, 2010. The Company’s operations in Brazil started in 2010. Brazil revenues are disclosed in Note 1, its pre-tax loss from operations is diclosed in Note 24 and, it had approximately Ps.427,466 in current assets and Ps.514,406 in long lived assets as of December 31, 2010.

The Company does not segregate its total assets by operating segment.