NEWSROOM

KB Home No Longer Reporting Monthly Net Orders

Friday, December 20, 2002 5:08 am PST

Dateline:

LOS ANGELES

Public Company Information:

NYSE:
KBH

KB Home (NYSE: KBH), one of the largest homebuilders in the United States and France, today announced that it will no longer report its net orders on a monthly basis. The Company will, however, continue to report its net orders on a quarterly basis.

The Company believes that net orders over a short time frame, such as one month, are prone to volatility and, therefore, may not accurately reflect the state of its business. The Company also believes such short-term results may be over-emphasized, particularly in light of the fact that most other publicly-held homebuilders do not currently report monthly net orders. The Company had continued to report its net orders in monthly press releases despite several other companies in the industry having discontinued this practice in recent years.

"KB Home remains committed to providing relevant information to the public in a timely manner," said Bruce Karatz, chairman and chief executive officer. "Our decision to move away from reporting monthly net orders for our new fiscal year is consistent with the industry and our business strategy, which is focused on longer-term initiatives."

KB Home is one of America's premier homebuilders with domestic operating divisions in the following regions and states: West Coast -- California; Southwest -- Arizona, Nevada and New Mexico; and Central -- Colorado, Texas and Florida. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2001, the Company delivered 24,868 homes in the United States and France. It also operates KB Home Mortgage Company, a full-service mortgage company for the convenience of its buyers. Founded in 1957, KB Home is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol "KBH." For more information about any of KB Home's new home communities, call 1-888-34-HOMES or visit the Company's web site at www.kbhome.com.

Except for the historical information contained herein, certain matters discussed in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including any statements concerning future financial performance, business and prospects, and future Company actions and their expected results. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, the continued impact of terrorist activities and U.S. response, accelerating recessionary trends and other adverse changes in general economic conditions, material prices, labor costs, interest rates, the secondary market for loans, consumer confidence, competition, currency exchange rates (insofar as they affect the Company's operations in France), environmental factors, government regulations affecting the Company's operations, the availability and cost of land in desirable areas, unanticipated violations of Company policy, unanticipated legal proceedings, and conditions in the capital, credit and homebuilding markets. See the Company's Annual Report on Form 10-K and its Annual Report to Shareholders for the year ended November 30, 2001 and its other filings for a further discussion of these and other risks and uncertainties applicable to the Company's business.

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