KB Home Repays $230 Million of Convertible Senior Notes

KB Home (NYSE: KBH) today announced that it repaid $230 million in
aggregate principal amount of its 1.375% Convertible Senior Notes at
their maturity on February 1, 2019. The conversion rate on these notes
equated to approximately 8.4 million shares of the Company’s common
stock. The repayment of this convertible debt is anticipated to reduce
KB Home’s diluted weighted average shares outstanding in the 2019 first
quarter to approximately 97 million.

“The repayment of these convertible senior notes reflects our continued
execution on our Returns-Focused Growth Plan,” said Jeffrey Mezger,
chairman, president and chief executive officer. “We are now into the
third year of our Plan, which has helped drive expansion of our scale,
profits and returns, and enabled us to repay a significant amount of
debt.”

About KB Home

KB Home (NYSE: KBH) is one of the largest homebuilders in the United
States, with more than 600,000 homes delivered since our founding in
1957. We operate in 38 markets in eight states, primarily serving
first-time and first move-up homebuyers, as well as second move-up and
active adults. We are differentiated in offering customers the ability
to personalize what they value most in their home, from choosing their
lot, floor plan, and exterior, to selecting design and décor choices in
our KB Home Studios. In addition, our industry leadership in
sustainability helps to lower the cost of homeownership for our buyers
compared to a typical resale home. We take a broad approach to
sustainability, encompassing energy efficiency, water conservation,
healthier indoor environments, smart home capabilities and waste
reduction. KB Home is the first national builder to have earned awards
under all of the U.S. EPA’s homebuilder programs — ENERGY STAR®,
WaterSense® and Indoor airPLUS®. We invite you to learn more about KB
Home by visiting www.kbhome.com,
calling 888-KB-HOMES, or connecting with us on Facebook.com/KBHome
or Twitter.com/KBHome.

Forward-Looking and Cautionary Statements

Certain matters discussed in this press release, including any
statements that are predictive in nature or concern future market and
economic conditions, business and prospects, our future financial and
operational performance, or our future actions and their expected
results are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on current expectations and projections about
future events and are not guarantees of future performance. We do not
have a specific policy or intent of updating or revising forward-looking
statements. Actual events and results may differ materially from those
expressed or forecasted in forward-looking statements due to a number of
factors. The most important risk factors that could cause our actual
performance and future events and actions to differ materially from such
forward-looking statements include, but are not limited to the
following: conditions in the capital, credit and financial markets; our
ability to access external financing sources and raise capital through
the issuance of common stock, debt or other securities, and/or project
financing, on favorable terms; the execution of any share repurchases
pursuant to our board of directors’ authorization; and other events
outside of our control. Please see our periodic reports and other
filings with the Securities and Exchange Commission for a further
discussion of these and other risks and uncertainties applicable to our
business.

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