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KB Home Completes Offerings Of Common Stock And 1.375% Convertible Senior Notes Due 2019

KB Home (NYSE: KBH), one of the nation’s largest and most recognized homebuilders, today reported that it has completed the previously announced sale of 6.325 million shares of its common stock and of $230 million in aggregate principal amount of its 1.375% convertible senior notes due 2019. These amounts include the exercise in full by the underwriters of their options in the applicable offerings to purchase shares of common stock, and to purchase convertible senior notes to cover over-allotments. The Company received total net proceeds of approximately $332.9 million from the offerings, after underwriting discounts and estimated expenses payable by the Company, which it intends to use for general corporate purposes, including without limitation land acquisition and development.

The convertible senior notes bear interest at a rate of 1.375% per year, payable semi-annually in arrears, and will mature in 2019, unless earlier purchased, redeemed or converted. The senior notes are convertible into shares of KB Home’s common stock at an initial conversion rate of 36.5297 shares per $1,000 principal amount of senior notes, which is equal to a conversion price of approximately $27.37 per share, subject to adjustment in certain circumstances. The convertible senior notes are guaranteed on an unsecured senior basis by certain of KB Home’s subsidiaries that have guaranteed the Company’s outstanding senior notes.

The concurrent offerings were made pursuant to an effective shelf registration statement that KB Home has on file with the Securities and Exchange Commission ("SEC"), by means of separate prospectus supplements. For each offering, copies of the final prospectus supplement and accompanying prospectus describing the offering may be obtained by visiting EDGAR on the SEC's website at www.sec.gov or by contacting Citigroup at the following address: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by telephone at 1-800-831-9146 or by e-mail at batprospectusdept@citi.com, or Credit Suisse at the following address: Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, e-mail: newyork.prospectus@credit-suisse.com or toll free at (800) 221-1037.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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