The joint venture will focus principally on building large distinctive communities in areas where new residential development has not occurred in recent years.

"As cities focus on revitalization, American CityVista and Kaufman and Broad will develop areas that have been overlooked by major homebuilders in the past," says Mr. Karatz. "This is a vision Kaufman and Broad shares with Henry Cisneros, and together we have the resources and expertise to make vital new neighborhoods a reality."

With offices in Los Angeles and San Antonio where Cisneros will be headquartered, American CityVista will target areas ripe for development, as part of the "smart growth" strategy that has become a national priority.

"The demand for homes in central neighborhoods, or 'infill housing', is at an all-time high," says Cisneros. "Nationally, there is great momentum for new development in central cities, and city leaders recognize that large-scale homeownership provides community stability. Many Americans want to live closer to work and enjoy a more metropolitan lifestyle. There is also a definite increase in demand for homeownership among minorities and immigrants. These factors have created a tremendous opportunity for American CityVista to build a successful business, because it is based on an ever-growing need."

American CityVista will work with Kaufman and Broad to identify sites, plan neighborhoods, acquire and develop land, build homes, and market them as competitively-priced "villages within cities" that are wired for technology and designed to honor local tastes and traditions.

By building neighborhoods that mirror the face of America, American CityVista will provide new residential options for buyers of all backgrounds and incomes, from immigrants and first time homeowners to empty nesters and hip urban dwellers. Cisneros and Karatz initially will focus their efforts in California, Texas, Arizona, Nevada and Colorado, with plans for future expansion into other areas across the country.

"Kaufman and Broad wants to be part of the solution to the challenges of growth," say Karatz. "This joint venture will be good for homebuyers, good for communities, and good for our Company's future."

To Cisneros, Kaufman and Broad is the ideal partner to help reinvigorate cities through homeownership. With more than $2.6 billion in assets and 22,460 single family homes built in 1999, Kaufman and Broad is a national leader in profitably building and marketing quality homes that many Americans want and can afford.

"My most fulfilling days as Mayor of San Antonio and HUD Secretary were those when I saw happy families moving into new neighborhoods," Cisneros says. "By partnering with Kaufman and Broad, I can return to helping people fulfill the American Dream of private home ownership."

American CityVista will be jointly capitalized by Kaufman and Broad and Cisneros, and will begin operations in September. Victor Miramontes is expected to serve as president and chief operating officer; Randy Reinhart will be vice president, Western States; and Winston Martin will be named vice president in San Antonio.

Cisneros will serve as chief executive officer of American CityVista, and will have majority ownership of American CityVista. He will also chair its executive board, which will include a representative of Kaufman and Broad and a jointly selected outside director. Kaufman and Broad, which has minority ownership of American CityVista, has added Henry Cisneros to its board of directors effective today.

PHOTOS AVAILABLE AT WIREPIX.COM PHONE AND BROADCAST INTERVIEWS AVAILABLE Press release can be downloaded at Americancityvista.com
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For information in Spanish, please contact Lorraine Pulido-Ramirez, GarciaLKS, 210-222-1591, ext 208; Cell, 210-240-3627; lorraine@garcialks.com

American CityVista
Initial Cities for Development

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