Exhibit 99.1

                       [MERITAGE CORPORATION LETTERHEAD]



                 MERITAGE CORPORATION TO ACQUIRE HAMMONDS HOMES

         DALLAS AND SCOTTSDALE, ARIZ. (JUNE 13, 2002) - MERITAGE CORPORATION
(NYSE: MTH) today announced that it entered into a definitive agreement to
purchase the homebuilding assets of Hammonds Homes, a privately held builder of
quality homes in approximately 40 communities throughout key Texas markets. The
closing of the acquisition is expected to occur on or before June 30, 2002, and
is subject to the satisfaction of certain conditions.

         Hammonds Homes, established in 1987, builds a wide range of quality
homes in the Houston, Dallas/Ft. Worth and Austin, Texas areas with a focus on
serving the move-up housing market. During 2001, Hammonds closed 935 homes at an
average selling price of approximately $193,000, resulting in total revenue of
$181.1 million. The estimated purchase price will be approximately $82.8
million, which includes cash payable at closing and the repayment of existing
debt.

         "Hammonds Homes will enable us to significantly expand our presence in
the Houston and Austin markets and strengthen our Dallas operations," said John
Landon, co-chairman and co-chief executive officer of Meritage. "We believe this
acquisition will be accretive to our 2002 earnings."

         "The acquisition is consistent with the growth plans we have held over
the last 5 years. We continue our strategy of expanding our existing operations
while seeking acquisition candidates that fit culturally, as well as
financially, into our corporate goals," stated Steve Hilton, co-chairman and
co-chief executive officer.

              SECOND QUARTER BEGINS WITH STRONG ORDERS AND CLOSINGS

         Meritage also announced that it recorded strong results for April and
May 2002. New home orders for the two months of April and May 2002 were 810,
with a dollar value of $212.8 million, compared to 428 homes with a dollar value
of $95.3 million for the comparable two months in 2001, a 123% increase in
dollar value. Home closings for the two months of April and May 2002 totaled
677, compared to 429 for the comparable two months in 2001, a 58% increase.
Revenue for April and May 2002 totaled $159.3 million, compared to $98.5 million
for the comparable two months in 2001, a 62% increase. Meritage's Hancock
division, which Meritage acquired effective May 31, 2001, contributed 200 home
closings with a dollar value of $36.2 million in April and May 2002.

                                     -more-
         ABOUT MERITAGE CORPORATION

         Meritage Corporation designs, builds and sells distinctive
single-family homes ranging from first-time to semi-custom luxury. We were
recently ranked by Forbes magazine as #4 of its "200 Best Small Companies in
America," and have appeared twice on Fortune's list of the "Fastest Growing
Companies in America." We operate in the Phoenix and Tucson, Arizona markets
under the Monterey Homes, Hancock Communities and Meritage Homes brand names, in
the Dallas/Ft. Worth, Austin and Houston, Texas markets as Legacy Homes and in
the San Francisco East Bay and Sacramento, California markets as Meritage Homes.
Please visit our web site at: www.meritagehomes.com.

         Certain matters discussed in this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements concerning the
proposed transaction with Hammonds Homes, the ability to expand our presence in
certain Texas markets, and our expectations about the accretive effect of the
acquisition.

         Such statements are based upon the current beliefs and expectations of
our management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements.

         With respect to the Hammonds transaction, these uncertainties include:
the risk that the transaction will not close; and if closed, the risks that the
businesses will not be integrated successfully; that the market and financial
synergies anticipated from the acquisition may not be fully realized or may take
longer to realize than expected; that the acquisition will not be accretive to
earnings within the time period estimated by management, or at all; that
unanticipated expenses and liabilities may be incurred; and that the combined
companies will lose key employees or suppliers.

         In addition, our business is also subject to a number of risks and
uncertainties including: the strength and competitive pricing environment of the
single-family housing market; changes in the availability and pricing of
residential mortgages; changes in the availability and pricing of real estate in
the markets in which we operate; our high level of indebtedness; demand for and
acceptance of our homes; the success of planned marketing and promotional
campaigns; the success of our program to integrate existing operations with our
planned new operations or those of past or future acquisitions; our ability to
raise additional capital; our success in locating and negotiating favorably with
possible acquisition candidates; recent legislative or other initiatives that
seek to restrain growth in new housing construction or similar measures; the
economic impact of foreign hostilities or military action; general economic slow
downs; and other factors identified in documents filed by us with the Securities
and Exchange Commission, including those set forth in the Meritage's Form 10-K
Report for the year ended December 31, 2001 under the captions "Market for the
Registrant's Common Stock and Related Stockholder Matters - Factors that May
Affect Future Stock Performance" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and in Exhibit 99.1 of the
Company's Form 10-Q for the quarter ended March 31, 2002. As a result of these
and other factors, the prices of Meritage's securities may fluctuate
dramatically.

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