“We’re delighted to be entering the South Carolina market through this acquisition,” said KB Home Chairman and CEO Bruce Karatz. “Palmetto shares our passion for quality-built homes and excellent customer service, and we welcome them as part of the KB Home team as we grow our leadership position in the Southeast.”

Palmetto currently builds in Charleston, Columbia and Greenville-Spartanburg-Anderson, the three largest metropolitan areas in South Carolina. In 2003, Palmetto delivered 570 homes, generating revenues of approximately $90 million.

The expansion into South Carolina positions KB Home in 34 of the top 75 U.S. housing markets.

"KB Home was the perfect way to take the foundation of quality and integrity that Palmetto Traditional Homes was built on and bring it to the next level,” said Andy White, Palmetto Traditional Homes president. “KB Home shares our understanding that solid value is the most significant benefit we can provide our homebuyers.”

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, Illinois, 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 2003, the company delivered homes to 27,331 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) 231-4015
kmulhearn@kbhome.com