Nowadays, I reject more companies than I interview for based on an initial phone conversation. I have requirements in what I look for in a company and position, and some simple questions help me resolve many of the primary requirements. Given a take home exam, I will have invested hours of my time, before given a chance to screen the company.
Just say no. End the madness.
EDIT: I should add that when I mention a phone conversation, I meant with someone on the dev team, not HR. A take home exam after only an HR phone screen is not acceptable.