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.  Forward-looking  statements
in this Form 10-Q include  statements  concerning the demand for and the pricing
of our homes,  the expectation of continued  positive  operating  results in the
remainder of 2002 and beyond, the expected benefits of the Hancock  acquisition,
including future home closings and Hancock's future contribution to our revenues
and earnings, and our ability to continue positive operating results in light of
current economic  conditions.  Such statements are subject to significant  risks
and uncertainties.

     Important  factors  currently  known to management  that could cause actual
results to differ materially from those in forward-looking  statements, and that
could negatively affect the Company's business and the prices of our securities,
include,  but are not limited  to, the  following:  (i) changes in national  and
local  economic  financial  results  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, availability of subcontractors,
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
or after 2002; (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; (xiii) the loss of key employees of the Company, including Steven
J. Hilton and John R. Landon;  (xiv) Meritage's  exposure to natural  disasters;
(xv) Meritage's significant level of indebtedness and the diversion of cash flow
to make debt payments;  (xvi) restrictions on our business activities imposed by
the agreements governing our indebtedness; and (xvii) our inability to repay our
indebtedness.

     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 or unanticipated events or changes to
projections over time. As a result of these and other factors, the prices of our
securities may fluctuate dramatically.