Company Outlines Environmentally Friendly Accomplishments, Ongoing Challenges and Commitments for the Future

KB Home (NYSE:KBH), one of America’s largest homebuilders, today announced its first ever sustainability report, available at www.kbhome.com/sustainability. The KB Home Sustainability Report is a comprehensive review of the Company’s progress toward sustainability, identifying both ongoing initiatives and operational challenges, as well as KB Home’s future commitments and actions.

“Our business requires a delicate balance between the societal need for affordably priced new homes and the environmental need to use our limited natural resources wisely,” said Jeffrey Mezger, president and chief executive officer of KB Home. “The opportunities for KB Home to make a measurable impact in this area are immense, and we are committed to making sustainability an integral part of how we do business.”

In 2007, KB Home launched its My Home. My Earth.™ strategic environmental initiative, which focuses on ways the Company can become a leading environmentally friendly national company while creating a companywide culture of sustainability. The Company’s inaugural sustainability report is an important step in that process.

The report details KB Home’s perspective on the environment, how it empowers homebuyers to participate in sustainability, and initiatives undertaken in 2007 that advanced the Company’s sustainability commitments.

In compiling the report, the company followed the Global Reporting Initiative (GRI) Guidelines. GRI is considered by many to be the current standard framework for sustainability reporting, providing a high level of accountability and transparency.

More than 85% of the total energy consumption during a home’s life cycle stems from the energy used in day-to-day living. KB Home’s greatest opportunity to reduce the carbon footprint of its homes is to provide energy-efficient features and educate homebuyers about how to conserve energy over the lifetime of their homes.

From 2001 through 2007, KB Home built 53,541 highly energy-efficient homes, including 44,136 ENERGY STAR® qualified homes and 9,405 ComfortWise® certified homes. According to U.S. Environmental Protection Agency formulas, these homes reduce greenhouse gas emissions by over 140,000 metric tons annually, estimated to be equivalent to removing over 26,000 cars from our roads each year.