KB Home (NYSE:KBH), one of America’s largest homebuilders, today announced that it has priced an offering of $265 million aggregate principal amount of 9.100% Senior Notes due 2017 (the “2017 Notes”). The offering is expected to close on July 30, 2009, subject to customary closing conditions.

KB Home intends to apply all or a portion of the net proceeds from the 2017 Notes offering toward the payment of the purchase price in a tender offer, which it announced today, for its outstanding 6 3/8% Senior Notes due 2011 (the “2011 Notes”). After payment for the 2011 Notes, KB Home intends to add any remaining net proceeds from the sale of the 2017 Notes to its general corporate funds.

Citi is acting as book-running manager for the 2017 Notes offering. A shelf registration statement covering the issuance of the 2017 Notes has been filed with the Securities and Exchange Commission and is effective. Copies of the prospectus supplement and accompanying prospectus describing the offering may be obtained by visiting EDGAR on the SEC’s web site at www.sec.gov or by contacting Citi at (877) 858-5407.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any 2017 Notes nor shall there be any sale of 2017 Notes 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. The 2017 Notes offering is being made only by means of the prospectus supplement and accompanying prospectus.

Corporate Profile

KB Home, one of the nation’s leading homebuilders, has delivered hundreds of thousands of quality homes for families since its founding in 1957. The Company is distinguished by its Built to Order™ homebuilding approach that puts a custom home experience within reach of its customers at an affordable price. KB Home’s award-winning homes and communities meet the needs of first-time homebuyers with flexible designs that also appeal to move-up buyers and active adults. Los Angeles-based KB Home was named the #1 homebuilder on FORTUNE ^® magazine’s 2009 “World’s Most Admired Companies” list. This marks the second year in a row and the third time in the past four years that KB Home has achieved the top ranking. The Company trades under the ticker symbol “KBH,” and was the first homebuilder listed on the New York Stock Exchange.