KB HOME PROMOTES WILLIAM R. HOLLINGER TO SENIOR VP, CONTROLLER

Los Angeles, California, July 9, 2001 - KB Home (NYSE: KBH), one of the largest homebuilders in the United States and France, today announced that it has promoted William R. Hollinger to the position of Senior Vice President and Controller. Mr. Hollinger, who was previously Vice President and Controller of KB Home, will continue to report to Bruce Karatz, the Company's Chairman and Chief Executive Officer.

 
Mr. Hollinger has been a key member of the Company's management team for more than a decade. In his current and continuing role, Mr. Hollinger has oversight responsibility for the accounting and financial functions of the entire Company, including all of its domestic and international operating subsidiaries. Mr. Hollinger also leads the Company-wide business planning process and is responsible for developing and implementing initiatives to strengthen financial performance. Throughout his career with KB Home, Mr. Hollinger has played an important role in the Company's major transactions, including the Company's tax-free spin-off, several public debt and equity offerings, various acquisitions and the initial public offering of the Company's French subsidiary. He has also been instrumental in positioning the Company's financial structure to support its unprecedented expansion to record earnings levels. Prior to joining KB Home in 1987 as Manager of Controls Evaluation and Audit, Mr. Hollinger spent five years as an auditor in the Los Angeles office of PricewaterhouseCoopers.

"Bill has been an integral member of the KB Home team for 14 years and has consistently contributed outstanding results to our Company," said Bruce Karatz. "This promotion is an acknowledgement of and recognition for the key role he plays as Controller for KB Home. We look forward to his continued dedication in the years ahead."

Hollinger graduated Summa Cum Laude from California State University, Northridge with a Bachelor of Science degree in Business Administration with a double major in accounting and finance. He is a Certified Public Accountant and member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants.

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 and Texas. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2000, the Company delivered homes to 22,847 families in the United States and France. It also operates 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-KB-HOMES or visit the Company's Web site at www.kbhome.com.

For more information contact:
Kate Mulhearn
Director, Public Relations
(310) 231-4147