KB Home Completes Sale of Its French Operations

Business Wire, July 10, 2007

LOS ANGELES -- KB Home (NYSE:KBH) announced today that it has completed the previously reported sale of its entire 49% equity interest, representing 10,921,954 shares, in its French subsidiary Kaufman & Broad SA ("KBSA") to PAI Partners ("PAI") for gross proceeds of approximately $800 million. The purchase price of 55.00 euros per share consists of 50.17 euros per share in cash paid by PAI and 4.83 euros per share in the form of a cash dividend paid by KBSA.

About KB Home

Celebrating its 50th anniversary in the homebuilding industry, KB Home is one of America's largest homebuilders. Headquartered in Los Angeles, the Company has domestic operating divisions in 15 states, building communities from coast to coast. 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 or complete mortgage services through Countrywide KB Home Loans, call 888-KB-HOMES or visit www.kbhome.com.

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