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KB Home Becomes First Builder in Los Angeles Awarded NHQ Certification for Exceptional Quality and Customer Satisfaction; Landmark Quality Management Program Provides Third-Party Certification and Increases Customer Satisfaction.

UPPER MARLBORO, Md. -- The NAHB Research Center today announced the National Housing Quality (NHQ) Certification of KB Home's Northern Los Angeles division. Headquartered in Valencia, Calif., the local division of national home builder KB Home (NYSE:KBH), earned the designation following a rigorous NAHB Research Center audit of the implementation of their quality assurance systems. KB Home was the first production builder in California to earn the certification, and currently has eight NHQ Certified divisions operating in the state. KB Home Los Angeles joins the elite group of builders across the nation that have successfully completed the program since its launch in early 2005. Additional KB Home divisions in other states are participating in the program and working toward certification in 2006, signaling KB Home's corporate-wide commitment to the NHQ program.

Participation in the NHQ Certified Builder program is designed to increase efficiency and consistency in building practices. Formally launched at the 2005 International Builders' Show, the NHQ Certified Builder program provides a rigorous and complete review of business practices, and ensures that all elements of the company's quality assurance system are incorporated to provide greater customer satisfaction. To achieve certification, KB Home's Northern Los Angeles division participated in field and office training to implement the quality program, work more efficiently with their trade contractors, and maintain the continuous improvement efforts required by all NHQ Programs.

NAHB Research Center president Michael Luzier said, "I am excited about how the NHQ Certified Builder program is evolving and the increased efficiencies and customer satisfaction that participating builders are achieving. This program will continue to play a vital role in the evolution of quality assurance in home building, and I would like to thank KB Home's Los Angeles division for taking part in it."

KB Home - Los Angeles' First Builder Certified for Quality

KB Home has been delivering quality homes in communities throughout the Los Angeles metro area since 1963. Even with such an impressive track record, KB Home is not only focused on building homes; customer service excellence remains a top priority for the company.

"Becoming the first builder in Los Angeles to be named an NHQ Certified Builder is a significant milestone in our continued commitment to providing superior customer service, innovative architecture and quality homes," said KB Home North Los Angeles division president, Tom DiPrima. "KB Home is driven by these goals in everything we do. Completing the National Housing Quality Certified Builder program was particularly important to our division because it demonstrates to homebuyers and our partners that KB Home is dedicated to delivering quality homes."

KB Home has long been a pioneer in quality assurance in the home building industry. In November 2003, KB Home Chairman and CEO Bruce Karatz announced that the company would become the first large builder in the country to implement the NHQ Certified Trade Contractor program nationwide. This partnership has served to provide greater efficiency, consistency, and effectiveness to the benefit of KB Home's customers. As a result of program implementation, all of KB Home's trade partners will be required to complete quality assurance management training, and are on their way towards achieving NHQ certification.

About the National Housing Quality Program: The NAHB Research Center launched the NHQ Program in 1993. The NHQ Program has introduced many of the concepts of the worldwide quality revolution to home building and remodeling, and provides numerous opportunities for collaboration among the various industry stakeholders. NHQ activities include the Certified Builder Program, Certified Trade Contractor Program, Manufacturer Training Certification program, and co-sponsorship of the National Housing Quality Award Program. Builders interested in starting on the path to quality certification can visit www.nahbrc.org/quality, email quality@nahbrc.org., or call Rita Knab, NHQ program coordinator, at (800) 638-8556, ext. 6225.

ABOUT THE NAHB RESEARCH CENTER: Located in Upper Marlboro, Md., the NAHB Research Center promotes innovation in housing technology to improve the quality, durability, affordability, and environmental performance of homes and home building products. Created over 40 years ago as a subsidiary of the National Association of Home Builders (NAHB), the NAHB Research Center has established itself as the source for reliable, objective information and research on housing construction and development issues. Through its various testing and certification services, the Research Center seal is internationally-recognized as a mark of product quality and an assurance of product performance.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "NAHB Research Center." If clarification of the acronym is necessary, the phrase, "a subsidiary of the National Association of Home Builders (NAHB)," can follow. In subsequent mentions, "Research Center" is the only acceptable and accurate alternative reference.

ABOUT KB HOME: Building homes for nearly half a century, KB Home is one of America's premier homebuilders with domestic operating divisions in some of the fastest-growing regions and states: West Coast--California; Southwest--Arizona, Nevada and New Mexico; Central--Colorado, Illinois, Indiana, Louisiana and Texas; and Southeast--Florida, Georgia, Maryland, North Carolina, South Carolina and Virginia. Kaufman & Broad S.A., the Company's publicly-traded French subsidiary, is one of the leading homebuilders in France. In fiscal 2005, the Company delivered homes to 37,140 families in the United States and France. KB Home also offers complete mortgage services through Countrywide KB Home Loans, a joint venture with Countrywide Financial Corporation. Founded in 1957, and ranked the #1 homebuilder in Fortune Magazine's 2006 list of America's Most Admired Companies, 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 (888-KB-CASAS) or visit http://www.kbhome.com (http://www.kbcasa.com).
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