KB Home First Builder to Earn National Housing Quality Certification Nationwide

Business Wire, Feb 20, 2008

UPPER MARLBORO, Md. -- Today, the NAHB Research Center proudly announced that KB Home (NYSE: KBH), one of the nation's leading home builders, has been named the first builder to earn the prestigious National Housing Quality (NHQ) Certified Builder Program for all of its operations nationwide. Following a rigorous NAHB Research Center audit of the quality assurance systems of each division, KB Home was awarded this unique recognition for its company-wide commitment to quality and customer satisfaction. KB Home was also the first major builder to participate in the program, with its Las Vegas division earning the certification during the program's pilot phase in 2004. Since then, no other home builder has certified more divisions than KB Home, a landmark achievement that sets the bar for others in the industry.

Designed to foster consistency and quality in building practices, NHQ certification is presented to home builders and trade contractors who have documented and implemented quality management systems, and participated in systematic reviews of the implementation of those systems. Today, 45 home building companies are included in the program. Certification requirements ensure that all elements of a company's quality assurance systems are aligned to improve quality performance and provide greater customer satisfaction. To achieve certification, each of KB Home's divisions also independently sponsored numerous training sessions for their trades.

"At KB Home, what's important to the customer is at the heart of everything we do - and we know that quality is the number-one priority for our homebuyers," said Jeffrey Mezger, President and Chief Executive Officer of KB Home. "That's why we are so proud to be honored with the nationwide National Housing Quality certification. Our customers can have the home of their dreams Built to Order just the way they want it, backed up by the peace of mind that this unique national quality certification offers them."

KB Home has long been a pioneer in quality assurance in the home building industry. The builder was first to earn the NHQ designation in many regional markets and has encouraged its critical trades to be NHQ Certified. KB Home's participation in the NHQ Program helps to provide greater efficiency, consistency, and effectiveness to its customers. Since implementing the NHQ program, KB Home has seen its customer satisfaction rise to their highest levels ever.

"We are extremely pleased that KB Home has taken the lead in implementing this program on a national level, a major accomplishment that speaks volumes about their commitment to quality," said Michael Luzier, NAHB Research Center President. "The program is a powerful management tool that will continue to play a vital role in changing the business of home building. It is definitely making a positive impact for builders, their trades, and homebuyers, and we hope to see more builders of all sizes take the position that KB Home has by achieving NHQ certification for all its operations."

Program participation since the 2005 national launch has increased to 45, and an additional 17 builders, small and large, are currently involved in the program's consultative phase and are working toward certification by 2009.

Frank Alexander, NHQ program director at the NAHB Research Center, credits the consistent growth of the program to the support of industry partners. And, in the current slow housing market an increasing number of builders are seeking higher customer satisfaction ratings and a competitive edge. "The rigorous requirements of the NHQ program are not for the faint of heart," says Alexander. "To earn the mark, a company must have an unwavering commitment to quality. Earning this certification makes a statement to potential home buyers and that is - their satisfaction is the top priority."

About the National Housing Quality Program: NHQ includes 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.

The NAHB Research Center, located in Upper Marlboro, Md., 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.