LOS ANGELES, June 8, 2004 – KB Home (NYSE:KBH), one of the nation’s largest homebuilders, today announced that it has acquired Indianapolis-based Dura Builders Inc. The privately-held homebuilder delivered approximately 500 homes in 2003 generating just over $75 million in revenue.

"It has long been our strategy at KB Home to augment organic growth with smart, strategic acquisitions that expand the company’s national footprint," said Bruce Karatz, chairman and chief executive officer of KB Home. "As a first-class builder with a well-deserved reputation for quality and value, Dura is a perfect fit for that strategy. There are many factors that make central Indiana a great place to live, work and raise a family, including a strong local economy and robust population and job growth. This move will bolster KB Home's position in the fast-growing Midwest region of the United States -- a market we entered in September 2003 with the acquisition of Chicago-based Zale Homes."

Indianapolis is the 17th largest market in the U.S. with more than 13,000 permits issued in 2003. Founded in 1972, Dura has been a top ten builder in Indianapolis for nearly a decade. The company builds both single-family homes and active adult communities and currently has more than 35 active communities in the Greater Indianapolis area.

The founder and president of Dura Builders, Paul Shoopman, has been named president of KB Home’s newly-formed Indiana Division. Among numerous achievements, Shoopman received Ernst & Young’s National Entrepreneur of the Year Award in 2003. "Paul is an accomplished and well-respected business and civic leader in Indiana," added Karatz. "We are thrilled that he will be joining the KB Home team to lead our local operations."

"I’ve taken great pride in building Dura from the ground-up, and have carefully considered who would be best suited to accelerate our strategic growth and expansion plans," said Shoopman. "These are two companies that share an intense focus on quality construction and customer satisfaction. I'm honored to be leading this new KB Home division, and intend to use our extensive market knowledge to build upon the success we have enjoyed in central Indiana for more than 30 years."

KB Home regional general manager Glen Barnard will oversee KB Home's Indiana Division, in addition to his current responsibilities for the company's Colorado, Illinois and New Mexico operations.

About KB Home
Building homes for nearly half a century, KB Home is one of America's premier homebuilders with domestic operating divisions in some of the fastest- growing regions and states: West Coast -- California; Southwest -- Arizona, Nevada and New Mexico; Central -- Colorado, Illinois, Indiana and Texas; and Southeast -- Florida, Georgia, North Carolina and South Carolina. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2003, the Company delivered homes to 27,331 families in the United States and France. It also operates a full-service mortgage company for the convenience of its buyers. Founded in 1957, and winner of the 2004 American Business Award for Best Overall Company, 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 888-KB-HOMES or visit kbhome.com.

For further information contact:
Media Contact: Kate Mulhearn (310) 231-4147
kmulhearn@kbhome.com

Investor Contact: Kelly Masuda (310) 231-4184
Kmasuda@kbhome.com