Kaufman and Broad Executives Increase Share Ownership

LOS ANGELES, Calif (August 10, 1999) – Kaufman and Broad Home Corporation (NYSE:KBH) today announced that thirteen senior corporate and divisional managers have increased their personal ownership of the company’s common stock. The transactions announced today are the third in an anticipated series of transactions under Kaufman and Broad’s executive stock ownership policy, an ongoing program designed to further the company’s strategy of closely aligning the interests of management and shareholders. The policy requires senior corporate and divisional managers to achieve ownership levels of the company’s common stock equal to one to four times their annual salary, depending on their position. Executives must meet their required ownership levels within three years of becoming subject to the policy, and must sustain those levels throughout their employment with the company.

 

In making the share acquisitions announced today, the company’s executives exercised options previously awarded in the ordinary course under the company’s employee stock incentive plans. Although certain shares were sold in the transactions to cover taxes and the exercise price of the options, each executive’s share ownership increased on a net basis. Subsequent to the exercises, each participating executive received replacement options at current fair market value for a portion of the options exercised. The option exercises, including the acquisition of new shares and the sale of shares to cover the exercise price and tax liability of the participating executives, will be reported on required filings with the Securities and Exchange Commission. The company expects that individuals who are subject to the executive stock ownership policy may exercise additional options from time to time in the future in order to assist in achieving their ownership goals.

Kaufman and Broad Home Corporation is expected to be the largest homebuilder in the United States in 1999 based on the number of homes delivered. Headquartered in Los Angeles, the Company has operating divisions in California, Nevada, Arizona, New Mexico, Texas, Colorado and Utah and is also one of the largest homebuilders in France.

For More Information Contact:
Kate Mulhearn
(310) 231-4015
kmulhearn@kbhome.com