Kaufman and Broad Multi-Housing Group has specialized in developing and investing in affordable apartment communities for families and seniors financed through low income housing tax credits. Since its inception in 1994 through year-end 1999, the operation has developed and/or invested in more than 8,000 units nationwide. The sale will not impact the Group’s current operations, including projects in development.

  "Kaufman and Broad Multi-Housing Group is nationally recognized as a leader in affordable housing development in the United States. We are particularly pleased to be able to sell the Group to Simpson, a company of equal caliber and quality," said Albert Z. Praw, senior vice president, asset management and acquisition, Kaufman and Broad Home Corporation.

  In late 1999, Kaufman and Broad initiated a strategy to reposition and monetize certain assets including the sale or wind-up of certain businesses and select land positions. The strategy enables the Company to maintain its position as a market-leading builder in the Western U.S., to further improve its financial performance, and paves the way for future initiatives, including e-commerce initiatives that support the core homebuilding operations. As part of the strategy, in February of this year, the Company completed a partial public offering of its French subsidiary, Kaufman & Broad, S.A., which now trades on the Premier Marche of the ParisBourse. The Company continues to hold a majority interest in Kaufman & Broad, S.A.

  With U.S. homebuilding stocks trading at very low price to earning ratios, management and directors of Kaufman and Broad Home Corporation determined that the interests of its shareholders were best served by utilizing the cash generated from the asset repositioning strategy primarily to reduce debt and to repurchase stock. The Company has repurchased approximately 9.1 million shares in total under its stock repurchase program and has authority to repurchase an additional approximately 1.4 million shares.

  "With the closing of the Multi-Housing sale, the public offering of our French operations and the significant number of land sales that we have already closed this year, we are well on our way toward the successful completion of our asset repositioning strategy," Praw said. "The asset repositioning strategy allows Kaufman and Broad to increase shareholder value while also positioning the company for a very exciting future."

  "We have enough confidence in the future of the homebuilding industry that we intend to focus all of our resources on the core for-sale homebuilding business and programs to support the business," said Bruce Karatz, chairman and chief executive officer, Kaufman and Broad Home Corporation. "The outlook for homebuilding remains positive, particularly in the markets where Kaufman and Broad operates, and increased use of the Internet will provide new opportunities for growth through our e-commerce initiatives."

  Banc of America Securities served as Kaufman and Broad’s financial advisor in the transaction.

  Kaufman and Broad Home Corporation is one of America’s premier homebuilders with operating divisions in Arizona, California, Colorado, Nevada, New Mexico and Texas. Kaufman & Broad S.A., the Company’s majority owned subsidiary, is one of the largest homebuilders in France. In 1999, the Company delivered homes to 22,460 families in the U.S. and in France. It also operates a full service mortgage company for the convenience of its buyers. Founded in 1957, Kaufman and Broad is a Fortune 500 Company listed on the New York Stock Exchange under the ticker symbol "KBH".

  Certain matters discussed in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including any statements concerning future financial performance, business and prospects, and future Company actions and their expected results. These forward-looking statements are based on current expectations and projections and are not guarantees of future performance, which could be materially different. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, changes in general economic conditions, employment levels, costs of homebuilding, material and labor, home mortgage and other interest rates, the secondary market for mortgage loans, consumer confidence, competition, currency exchange rates (insofar as they affect the Company’s operations in France), environmental factors, government regulations affecting the Company’s operations, the availability and cost of land in desirable areas, unanticipated violations of Company policy, the success of the Company and its significant suppliers in identifying and addressing operating systems and programs that are not year 2000 ready, property tax rates, unanticipated delays in Company operations and conditions in the capital, credit and homebuilding markets. See the Company’s Annual Report on Form 10-K and its Annual Report to Shareholders for the year ended November 30, 1999 for a further discussion of these and other risks and uncertainties applicable to the Company’s business.

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