Stuart Wolff has resigned as chairman, chief executive officer and as an employee of Homestore, according to an announcement by the company. Wolff will be replaced as chairman of the Board of Directors by Joe F. Hanauer.

Trading in the firm's stock (Nasdaq: HOMS) resumed Monday. Trading had been halted by the exchange on December 21st, a day when the company's stock closed at $3.60. The stock closed Monday at $2.46 -- down $1.14 (31.67 percent).

In addition to Hanauer, other appointments were also announced today: W. Michael Long has been named chief executive officer (CEO). Jack D. Dennison will be the chief operating officer (COO) and Lewis R. Belote III has been named chief financial officer (CFO).

The changes come after several tumultuous weeks for the company: In December the firm's Chief Financial Officer, Joseph Shew, resigned, and on December 21st trading in company shares was halted by Nasdaq after Homestore announced an "accounting inquiry." Last week, Homestore announced that its online ad revenues during the first three quarters of 2001 had been "overstated" by $54 to $95 million. Essentially, advertising transactions counted as "revenue" should have been treated as barter transactions. An internal audit, which is not yet complete, could result in additional restatements and could cover periods before 2001.

Hanauer has served as a director of Homestore since November 1996. He is former chairman of Grubb & Ellis Company and former chairman of Coldwell Banker Residential Group, Inc.

Long, 49, has served as president and chief executive officer of The Continuum Company, Inc.; chief executive officer of Healtheon Corp.; and chairman of WebMD, Inc., after its merger with Healtheon.

Dennison, 45, is a former executive vice president, general counsel and secretary of Healtheon and its successor, WebMD, Inc.; vice president and general counsel of The Continuum Company, Inc.; and deputy general counsel of Computer Sciences Corporation.

Belote, 46, has more than 20 years of accounting and senior financial management experience, including serving as senior vice president of finance for Healtheon and WebMD, Inc.; chief financial officer of ActaMed Corp., the first company acquired by Healtheon; and 12 years with the accounting firm, Ernst & Young.

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Published: January 7, 2002

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