Press Release

Robert E. Schmermer, Jr.

President & CEO

Dear Shareholders,

I am pleased to report that based on a majority vote of outstanding shareholders, Meritage successfully completed a “Going Private” transaction on January 23, 2007. As a result, Meritage has withdrawn its listing (MHG) on the American Stock Exchange and terminated the registration of its common shares with the U.S. Securities and Exchange Commission. This move allows the Company to avoid the ever-increasing SEC costs (including Sarbanes Oxley Act costs) that disproportionately affect smaller public companies like Meritage.

[1] Marketwire: Meritage Completes “Going Private” Transaction