Exhibit 99.1


                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
         SAFE HARBOR COMPLIANCE STATEMENT FOR FORWARD-LOOKING STATEMENTS

     In  passing  the  Private  Securities  Litigation  Reform  Act of 1995 (the
"PSLRA"),   Congress  encouraged  public  companies  to  make   "forward-looking
statements" by creating a safe-harbor to protect  companies from  securities law
liability in connection with  forward-looking  statements.  Meritage  intends to
qualify  both its written and oral  forward-looking  statements  for  protection
under the PSLRA.

     The words  "believe,"  "expect,"  "anticipate,"  and  "project" and similar
expressions identify forward-looking statements, which speak only as of the date
the statement was made. Such  forward-looking  statements are within the meaning
of that term in Section  27A of the  Securities  Act of 1993,  as  amended,  and
Section 21E of the Securities Exchange Act of 1934. Such statements may include,
but are not  limited  to,  projections  of  revenues,  income  or loss,  capital
expenditures,  plans  for  future  operations,  financing  needs  or  plans  and
liquidity,  the impact of  inflation,  the impact of changes in interest  rates,
plans  relating to our  products or services,  acquisitions,  and new or planned
development projects, as well as assumptions relating to the foregoing.

     Important  factors  currently  known to management  that could cause actual
results to differ materially from those in forward-looking  statements, and that
could affect the Company's business generally,  include, but are not limited to,
the following:  (i) changes in national and local economic and other conditions,
such as employment levels,  availability of mortgage financing,  interest rates,
consumer  confidence,  and housing  demand;  (ii) risks inherent in homebuilding
activities,  including delays in construction schedules, cost overruns,  changes
in government  regulation,  increases in real estate taxes and other local fees;
(iii)  changes in costs or  availability  of land,  materials,  and labor;  (iv)
fluctuations  in real estate  values;  (v) the timing of home  closings and land
sales; (vi) Meritage's ability to continue to acquire additional land or options
to  acquire  additional  land on  acceptable  terms;  (vii) a  relative  lack of
geographic diversification of Meritage's operations, especially when real estate
analysts are predicting  that new home sales in certain  markets may slow during
2001;  (viii)  Meritage's  inability  to  obtain  sufficient  capital  on  terms
acceptable to Meritage to fund its planned capital and other expenditures;  (ix)
changes in local, state and federal rules and regulations  governing real estate
development and homebuilding activities and environmental matters, including "no
growth" or "slow growth" initiatives,  building permit allocation ordinances and
building  moratoriums;  (x) expansion by Meritage into new geographic or product
markets  in which  Meritage  has  little or no  operating  experience;  (xi) the
inability  of Meritage to identify  acquisition  candidates  that will result in
successful  combinations;  (xii) the failure of Meritage to make acquisitions on
terms acceptable to Meritage, or to successfully  integrate acquired operations,
into  Meritage;  and (xiii) the loss of key employees of the Company,  including
Steven J. Hilton and John R. Landon.

     Forward-looking  statements  express  expectations  of future  events.  All
forward-looking statements are inherently uncertain as they are based on various
expectations  and assumptions  concerning  future events and they are subject to
numerous  known and unknown  risks and  uncertainties  which could cause  actual
events or  results  to differ  materially  from  those  projected.  Due to these
inherent  uncertainties,  the  investment  community is urged not to place undue
reliance on  forward-looking  statements.  In addition,  Meritage  undertakes no
obligations to update or revise  forward-looking  statements to reflect  changed
assumptions, the occurrence of anticipated events or changes to projections over
time.