"This acquisition dramatically enhances our marketplace position in Tucson,” said KB Home Chairman and CEO Bruce Karatz. "We’re always looking for ways to offer quality and value to our Tucson homebuyers. This move allows us to provide even more selection and additional convenient community locations.”

KB Home entered the Tucson market with the 1998 acquisition of Estes Homes, a homebuilder with local operations for more than 50 years—a move that launched KB Home as the number one homebuilder in the region.

New World Homes, established in 1992 by Tucsonans Larry and Nancy Leung, was the area’s fifth largest builder. “It was important to us that the company we sell to be a highly professional, well-managed organization,” said Larry Leung, president of New World Homes. “From start to finish, the KB Home team has been a pleasure to deal with.”

With the New World Homes holdings, KB Home will have 28 new home communities under construction in Tucson.

KB Home is one of America's largest homebuilders, with domestic operating divisions in some of the fastest-growing areas of the country including: West Coast--California; Southwest--Arizona, Nevada and New Mexico; and Central--Colorado, Florida and Texas. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2001, the Company delivered homes to 24,868 families in the United States and France. It also operates KB Home Mortgage Company, 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 888-KB-HOMES or visit the Company's Web site at kbhome.com.

For Further Information Contact:
Debra Hotaling, Media Contact
(310) 231-4015
dhotaling@kbhome.com