KB HOME ELECTS J. TERRENCE LANNI TO BOARD OF DIRECTORS

LOS ANGELES (August 12, 2003) – KB Home (NYSE: KBH) today announced that J. Terrence (“Terry”) Lanni, chairman and chief executive officer of Las Vegas-based MGM MIRAGE, has been elected a director of the company. His election brings the total number of KB Home directors to 10, of which nine are non-employee directors of the company.

 
“Terry brings superb management experience to the KB Home board,” said Bruce Karatz, KB Home’s chairman and chief executive officer. “His expertise in marketing, finance and acquisitions will be a great asset to KB Home and our shareholders. We look forward to his thoughtful counsel as KB Home continues to grow its strong position in the housing industry.”

Lanni joined MGM Grand, Inc. in June 1995 as president, chief executive officer and a member of the board of directors. He oversaw the acquisition of Mirage Resorts by MGM Grand, Inc. thereby creating MGM MIRAGE. Lanni previously was a senior executive of Caesars World, Inc. for 18 years, serving as president and chief operating officer for almost 14 years.

Lanni received both his MBA and bachelor’s degrees from the University of Southern California. He is a director of Santa Anita, Inc., the Del Mar Thoroughbred Club and The Jim Pattison Group. Lanni also is a member of the Board of Trustees of The Ronald Reagan Presidential Foundation; the Board of Overseers of the Keck School of Medicine at the University of Southern California; the Marshall School of Business Board of Visitors, University of Southern California; and the Board of Trustees of the UNLV Foundation, University of Nevada, Las Vegas.

KB Home is one of America's largest homebuilders with domestic operating divisions in some of the fastest-growing areas of the country including Arizona, California, Colorado, Florida, Georgia, Nevada, New Mexico, North Carolina and Texas. Kaufman & Broad S.A., the company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2002, the company delivered homes to 25,565 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 888-KB-HOMES or visit kbhome.com.

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