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RYLAND TO CHANGE ITS FOCUS IN CALIFORNIA TO TARGET ENTRY-LEVEL MARKET

 COLUMBIA, Md., Jan. 14 /PRNewswire/ -- Ryland (NYSE: RYL) President and Chief Executive Officer R. Chad Dreier announced yesterday that the company plans to change its focus in California by building homes targeted at the entry-level and first-time, move-up homebuyer.
 The company markets under the Brock and Larchmont names in California, and its current product offering in that market includes second- and third-time, move-up homes.
 "Ryland plans to take advantage of today's low interest rates and the pent-up demand of first-time homebuyers," said Dreier.
 The announcement follows Ryland's third-quarter decision to take a $40 million reserve on its homebuilding inventories in Southern California. The reserve resulted from the company's decision to accelerate the completion and withdrawal from higher-end communities, which were negatively impacted by the high cost of land Ryland purchased in the late 1980s. The company will now concentrate on expansion in the entry-level housing market in California.
 In order to implement this strategy, Ryland has appointed Frank Scardina president of Ryland's newly formed California Region, which was previously part of Ryland's West Region operations. Ryland's West Region will include Phoenix and Denver.
 "Because of the distinct characteristics of the California market and the unique opportunities available there, it is important it be managed as a separate region," said Dreier. "This move also allows Ryland's West Region to concentrate on expansion opportunities in other markets."
 Scardina joined Ryland in 1993 as vice president of the Columbus division. Prior to Ryland, he held various senior operational positions during his 12 years with Kaufman and Broad Home Corporation in Southern California. "Frank's experience and knowledge of California will help Ryland regain its position as a leading homebuilder in that market," said Dreier.
 Ryland is the nation's third largest homebuilder and mortgage-finance company. Headquartered in Columbia, Maryland, the company was founded in 1967 and currently operates in 18 states and more than 40 U.S. markets, as well as internationally. The company entered the California housing market in December 1986 through its acquisition of M.J. Brock & Sons, Inc., a California homebuilder founded in 1922.
 -0- 1/14/94
 /CONTACT: Anne Madison of Ryland, 410-715-7244, or home, 410-531-3775/
 (RYL)


CO: Ryland ST: Maryland, California IN: CST SU:

JO-JM -- PH033 -- 2203 01/14/94 17:36 EST
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Publication:PR Newswire
Date:Jan 14, 1994
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