M.D.C. Holdings expands its presence in affordable homes market in Southern California by acquiring home building assets of Mesa Homes.

DENVER--(BUSINESS WIRE)--July 6, 1995--M.D.C. Holdings, Inc. (NYSE/PSE: MDC) today announced that its subsidiary, Richmond American Homes of California, Inc. ("Richmond American"), purchased for about $12 million (subject to post-closing adjustments) 16 model homes, 63 finished lots and 123 homes under construction from Mesa Homes, a major Southern California home builder.

Sixty-nine of the purchased homes under construction already are sold under contracts which were acquired by Richmond American.

The acquired assets are located in six subdivisions in Paloma Del Sol, a master-planned community in the city of Temecula, Riverside County, California, approximately 55 miles north of San Diego. Homes in these subdivisions range in price from $105,000 to $170,000 and are targeted for first-time and first-time move-up buyers.

Richmond American also announced that it entered into an option agreement with KRDC, Inc. which permits Richmond American to acquire, over a two-year period, approximately 525 additional finished and graded single-family lots located in and around the acquired subdivisions in Paloma Del Sol.

"The purchase of these assets is consistent with MDC's strategy to expand its home building operations, particularly in its existing markets, and will allow MDC to increase its presence in the rebounding Southern California market for affordable homes," said Spencer I. Browne, President of MDC. "Not only will these assets provide additional opportunities in a market that MDC believes has significant potential, but also will provide MDC with additional home closings and operating profits beginning in the third quarter of 1995," added Mr. Browne.

"These assets, which are located within 15 minutes of an existing Richmond American project, represent a significant addition to our Southern California operations," said David D. Mandarich, MDC Executive Vice President - Real Estate. "We intend to build out these assets from our Southern California division headquarters in Irvine, California, and, as a result, do not anticipate a significant increase in division overhead costs," he added.

Mesa Homes is owned by various subsidiaries of Kemper Corporation and the Kemper National Insurance Companies. With $50 million in revenues and 372 home closings in 1994, Mesa ranked as the largest home builder in south Riverside County, California, according to The Meyers Group, a Southern California research company.

M.D.C. Holdings, Inc. is the seventh-largest publicly traded home builder in the United States and Colorado's largest home builder. The company builds single family homes under the names Richmond Homes and Richmond American Homes in some of the country's best housing markets, including Denver, Northern Virginia, suburban Maryland and Baltimore, Phoenix, Tucson, Sacramento and Southern California. MDC is headquartered at 3600 South Yosemite Street, Suite 900, Denver, Colorado 80237.

CONTACT: M.D.C. Holdings, Inc., Denver

Paris G. Reece III (financial), 303/773-1100

or

Burson-Marsteller, New York 

Mary McGeachy (media), 212/614-5173