KB Home Reports Preliminary Quarter-to-Date Net Orders Increase 54%

  KB Home Reports Preliminary Quarter-to-Date Net Orders Increase 54%

Business Wire

LOS ANGELES -- January 22, 2013

KB Home (NYSE: KBH), one of the nation’s largest and most recognized
homebuilders, today reported preliminary quarter-to-date net orders for its
first fiscal quarter of 2013. Net orders for new homes were 750
quarter-to-date through January 18, 2013, representing an increase of 54%,
compared to net orders of 488 through January 20, 2012 in the first quarter of
last year. While the improved quarter-to-date net orders compare favorably to
the weak net order performance in the prior year period,the relative
improvement is expected to moderate as the fiscal first quarter 2013
continues.

“We have seen a measurable increase in our first quarter net orders as
compared to the same period last year,” said Jeffrey Mezger, president and
chief executive officer of KB Home. “This trend reflects the ongoing
improvement in the housing market and our focused execution of our strategic
growth initiatives.”

To learn more about KB Home, visit kbhome.com or call 888-KB-HOMES.

About KB Home

KB Home is one of the largest and most recognized homebuilding companies in
the United States. Since its founding in 1957, the company has built more than
half a million quality homes. KB Home's signature Built to Order™ approach
lets each buyer customize their new home from lot location to floor plan and
design features. In addition to meeting strict ENERGY STAR® guidelines, all KB
homes are highly energy efficient to help lower monthly utility costs for
homeowners, which the company demonstrates with its proprietary KB Home Energy
Performance Guide® (EPG®). A leader in utilizing state-of-the-art sustainable
building practices, KB Home was named the #1 Green Homebuilder in the most
recent study by Calvert Investments and the #1 Homebuilder on FORTUNE
magazine's 2011 World's Most Admired Companies list. Los Angeles-based KB Home
was the first homebuilder listed on the New York Stock Exchange, and trades
under the ticker symbol "KBH." For more information about KB Home's new home
communities, call 888-KB-HOMES or visit www.kbhome.com.

Forward-Looking and Cautionary Statements

The above data reflect current operating statistics and do not constitute all
factors impacting the quarterly and annual financial results of KB Home. All
figures are unaudited and may be adjusted in the reported financial statements
of KB Home. KB Home makes no commitment to update this information for changes
in circumstances or events that occur subsequent to the date of this release.
In addition, certain matters discussed in this press release, including any
statements that are predictive in nature or concern future market and economic
conditions, business and prospects, our future financial and operational
performance, or our future actions and their expected results are
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on current
expectations and projections about future events and are not guarantees of
future performance. We do not have a specific policy or intent of updating or
revising forward-looking statements. Actual events and results may differ
materially from those expressed or forecasted in forward-looking statements
due to a number of factors. The most important risk factors that could cause
our actual performance and future events and actions to differ materially from
such forward-looking statements include, but are not limited to the following:
general economic, employment and business conditions; adverse market
conditions, including an increased supply of unsold homes, declining home
prices and greater foreclosure and short sale activity, among other things,
that could result in, among other negative impacts on our consolidated
financial statements, additional impairment or land option contract
abandonment charges, lower revenues and operating and other losses; conditions
in the capital, credit and financial markets (including mortgage lending
standards, the availability of mortgage financing and mortgage foreclosure
rates); material prices and availability; labor costs and availability;
changes in interest rates; inflation; our debt level, including our ratio of
debt to total capital, and our ability to adjust our debt level, maturity
schedule and structure and to access the equity, credit, capital or other
financial markets or other external financing sources, including raising
capital through the public or private issuance of common stock, debt or other
securities, and/or obtaining a credit or similar facility or project
financing, on favorable terms; weak or declining consumer confidence, either
generally or specifically with respect to purchasing homes; competition for
home sales from other sellers of new and resale homes, including lenders and
other sellers of homes obtained through foreclosures or short sales; weather
conditions, significant natural disasters and other environmental factors;
government actions, policies, programs and regulations directed at or
affecting the housing market (including, but not limited to, the 2010
Dodd-Frank Wall Street Reform and Consumer Protection Act, tax credits, tax
incentives and/or subsidies for home purchases, tax deductions for mortgage
interest payments and property taxes, tax exemptions for profits on home
sales, and programs intended to modify existing mortgage loans and to prevent
mortgage foreclosures), the homebuilding industry, or construction activities;
decisions by lawmakers on federal fiscal policies, including those relating to
taxation and government spending; the availability and cost of land in
desirable areas; our warranty claims experience with respect to homes
previously delivered and actual warranty costs incurred; legal or regulatory
proceedings or claims; our ability to use/realize the net deferred tax assets
we have generated; our ability to successfully implement our current and
planned product, geographic and market positioning (including, but not limited
to, our efforts to expand our inventory base/pipeline with desirable land
positions or interests at reasonable cost and to expand our community count,
open additional new home communities for sales and sell higher-priced homes
and more design options, and our operational and investment concentration in
markets in California and Texas), revenue growth, asset optimization, asset
activation, local field management and talent investment, and overhead and
other cost management strategies and initiatives; consumer traffic to our new
home communities and consumer interest in our product designs and offerings,
particularly higher-income consumers; cancellations and our ability to realize
our backlog by converting net orders to home deliveries; our home sales and
delivery performance in key markets in California and Texas; the manner in
which our homebuyers are offered and whether they are able to obtain mortgage
loans and mortgage banking services, including from our preferred mortgage
lender, Nationstar Mortgage LLC; the performance of Nationstar as our
preferred mortgage lender; information technology failures and data security
breaches; and other events outside of our control. Please see our periodic
reports and other filings with the Securities and Exchange Commission for a
further discussion of these and other risks and uncertainties applicable to
our business.

Contact:

KB Home
Susan Martin, Media Contact
310-231-4142
smartin@kbhome.com
or
Katoiya Marshall, Investor Relations Contact
310-893-7446
kmarshall@kbhome.com