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KAUFMAN AND BROAD REPORTS RECORD SECOND QUARTER NET ORDERS IN CALIFORNIA

 KAUFMAN AND BROAD REPORTS RECORD SECOND QUARTER
 NET ORDERS IN CALIFORNIA
 LOS ANGELES, June 2 /PRNewswire/ -- Kaufman and Broad Home Corp. (NYSE: KBH), California's largest single-family home builder, today reported record California net orders for the second quarter ended May 31.
 Statewide, the company took orders for an estimated 1,176 new homes during the three-month period, up 18.5 percent from the 994 orders reported in the same period a year ago. The results set a new company record for the period, surpassing the 1,075 orders reported in California during the second quarter of 1988, and nearly eclipsing the 1,191 orders reported in the third quarter of 1989, the best three-month period in company history.
 In the first six months of fiscal 1992, Kaufman and Broad has taken orders on an estimated 2,071 homes in California, an increase of 16.2 percent over the 1,784 net orders reported during the first half of 1991.
 "These results make it clear that Kaufman and Broad is giving the market what it wants: well-designed, affordably priced homes that offer unmistakable value to recession-weary customers," said Bruce Karatz, president and chief executive officer.
 In the face of a lackluster economic recovery, Karatz attributed Kaufman and Broad's strong recent trends in customer traffic and new home orders to a combination of factors. "To begin with, we're introducing more new communities at a time when many other builders are offering very little new product due to the lingering effects of the credit crunch.
 "Secondly, all our new homes emphasize value for the first-time buyer, with prices significantly below the market average and mortgage rates at historic low levels. Thirdly, we are marketing our new products very aggressively, including our continued use of TV advertising," Karatz said.
 Currently, the company is actively selling through 49 new home communities located throughout California, 24 of which have opened during the last six months. Selling prices average approximately $160,000 statewide and start as low as $85,000 in several locations.
 Market research continues to indicate heavy pent-up demand for affordable housing in California, Karatz said. "Our message is that it's still a great time to buy a home. But today's buyers demand value in addition to price. We feel our smaller, more efficiently designed models -- one of which was just named 'Home of the Year' at the 1992 Gold Nugget Awards, the most prestigious design competition in the western U.S. -- show that today's new homes can offer style and charm as well as plenty of room for growing families."
 The company's financial results from the recently concluded second quarter, including final net order and delivery data, will be announced later this month. According to Karatz, conditions continue to be difficult in France, Kaufman and Broad's other major market, with orders for French housing down substantially. As a result, the company reported essentially flat earnings in the first quarter of 1992 with similar results expected for the second quarter.
 Karatz said, however, that "based on the current momentum we see in California order rates, we believe profitability will improve during the second half of 1992, as our recent sales are converted into deliveries."
 Kaufman and Broad is the largest producer of single-family housing in California and the largest builder in metropolitan Paris, where the company develops commercial office properties and a variety of residential investment properties in addition to single-family homes.
 -0- 6/2/92
 /CONTACT: Eileen Rose, 310-443-8041, or Bernard Sandalow, 310-443-8040, both of Kaufman and Broad/
 (KBH) CO: Kaufman and Broad Home Corp. ST: California IN: CST SU:


KJ-JL -- LA007 -- 6046 06/02/92 08:32 EDT
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Publication:PR Newswire
Date:Jun 2, 1992
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