Hovnanian Enterprises and GSO Capital Partners Announce $125 Million Increase of Land Banking Arrangement

Hovnanian Enterprises and GSO Capital Partners Announce $125 Million Increase
of Land Banking Arrangement

RED BANK, N.J. and NEW YORK, Nov. 2, 2012 (GLOBE NEWSWIRE) -- Hovnanian
Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, and GSO Capital
Partners LP ("GSO"), the credit arm of The Blackstone Group (NYSE:BX),
announced today an increase of their land banking arrangement for an
additional $125 million, which brings the total arrangement since July 2012 to
$250 million.

During the next twelve months, GSO and Hovnanian anticipate identifying land
parcels for an additional $125 million in acquisition and development costs.
Funds managed by GSO will acquire a portfolio of land parcels and option
finished lots on a quarterly takedown basis back to Hovnanian.

"We are thrilled to announce an extension of our partnership with GSO,"
commented Ara Hovnanian, Chairman of the Board of Directors, President and
Chief Executive Officer of Hovnanian Enterprises, Inc. "The land banking
structure allows us to effectively control land on a just-in-time basis.The
increase in our land banking arrangement with GSO allows us to participate to
an even greater extent in buying attractive land opportunities by leveraging
outside capital. This frees up our cash position and enables us to make
additional land investments."

Doug Ostrover, Founding Member and Partner of GSO, said, "Given the successful
start of our land banking agreement, we are excited to increase our investment
in the residential real estate market.Hovnanian has been an excellent partner
and given the tremendous growth opportunities in the residential market today,
we are convinced that we have teamed up with a great company at the right time
in the cycle.We are hopeful that this is just one more step in a long and
mutually beneficial relationship with Hovnanian."

ABOUT HOVNANIAN ENTERPRISESĀ®, INC.:

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is
headquartered in Red Bank, New Jersey.The Company is one of the nation's
largest homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, North Carolina,
Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West
Virginia.The Company's homes are marketed and sold under the trade names K.
Hovnanian^(R) Homes^(R), Matzel & Mumford, Brighton Homes, Parkwood Builders,
Town & Country Homes and Oster Homes.As the developer of K. Hovnanian's^(R)
Four Seasons communities, the Company is also one of the nation's largest
builders of active adult homes.

Additional information on Hovnanian Enterprises, Inc., including a summary
investment profile and the Company's 2011 annual report, can be accessed
through the "Investor Relations" section of the Hovnanian Enterprises' website
at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax
lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

The Hovnanian Enterprises, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7499

ABOUT GSO CAPITAL PARTNERS LP:

GSO Capital Partners LP is the global credit platform of The Blackstone Group
L.P. (NYSE:BX). GSO, together with its affiliates, has approximately $55
billion of assets currently under management and is one of the largest
credit-oriented alternative managers in the world and a major participant in
the leveraged finance marketplace. GSO seeks to generate superior
risk-adjusted returns in its credit business by investing in a broad array of
strategies including mezzanine, distressed investing leveraged loans and other
special situation strategies.

FORWARD-LOOKING STATEMENTS

All statements in this press release that are not historical facts should be
considered as "forward-looking statements." Such statements involve known and
unknown risks, uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Although we believe that our plans, intentions and
expectations reflected in, or suggested by, such forward looking statements
are reasonable, we can give no assurance that such plans, intentions, or
expectations will be achieved. Such risks, uncertainties and other factors
include, but are not limited to, (1) changes in general and local economic and
industry and business conditions and impacts of the sustained homebuilding
downturn, (2) adverse weather and other environmental conditions and natural
disasters, (3) changes in market conditions and seasonality of the Company's
business, (4) changes in home prices and sales activity in the markets where
the Company builds homes, (5) government regulation, including regulations
concerning development of land, the home building, sales and customer
financing processes, tax laws, and the environment, (6) fluctuations in
interest rates and the availability of mortgage financing, (7) shortages in,
and price fluctuations of, raw materials and labor, (8) the availability and
cost of suitable land and improved lots, (9) levels of competition, (10)
availability of financing to the Company, (11) utility shortages and outages
or rate fluctuations, (12) levels of indebtedness and restrictions on the
Company's operations and activities imposed by the agreements governing the
Company's outstanding indebtedness, (13) the Company's sources of liquidity,
(14) changes in credit ratings, (15) availability of net operating loss
carryforwards, (16) operations through joint ventures with third parties, (17)
product liability litigation, warranty claims and claims by mortgage
investors, (18) successful identification and integration of acquisitions,
(19) significant influence of the Company's controlling stockholders, (20)
changes in tax laws affecting the after-tax costs of owning a home, (21)
geopolitical risks, terrorist acts and other acts of war, and (22) other
factors described in detail in the Company's Annual Report on Form 10-K for
the year ended October 31, 2011 and the Company's Quarterly Report on Form
10-Q for the quarterly period ended April 30, 2012. Except as otherwise
required by applicable securities laws, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other reason.

CONTACT: J. Larry Sorsby
         Hovnanian Enterprises, Inc.
         Executive Vice President & CFO
         Jeffrey T. O'Keefe
         Hovnanian Enterprises, Inc.
         Vice President, Investor Relations
         732-747-7800
        
         GSO Capital Partners LP
         Peter Rose
         Blackstone
         Senior Managing Director, Global Public Affairs
         212-583-5871

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