KB Home Exhibit 99

KB HOME REPORTS 2003 REVENUES OF $5.85 BILLION AND EPS OF $8.80
Revenue Growth of 16%; EPS Improves 23%
Backlog Increases 31% to $3.07 Billion; Leverage Ratio Lowest in 5 Years

Los Angeles, CA, December 18, 2003 — KB Home (NYSE: KBH), one of the largest homebuilders in the United States and France, today announced its financial results for the fourth quarter and fiscal year ended November 30, 2003. Highlights include:

•

The Company’s total revenues for the year ended November 30, 2003 reached $5.85 billion, up 16% from $5.03 billion posted in 2002, with unit deliveries of 27,331 homes increasing from 25,452 in 2002. Net income for 2003 totaled $370.8 million, up 18% from $314.4 million in 2002. Diluted earnings per share rose 23% to $8.80 in 2003 from $7.15 in 2002.

•

The Company posted strong top-line growth in the fourth quarter of 2003 with unit deliveries of 8,874, up 12% from 7,932 unit deliveries in the year-earlier quarter. Fourth quarter revenues reached $1.87 billion in 2003, increasing 11% from $1.68 billion in the corresponding quarter of 2002. For the quarter ended November 30, 2003, net income totaled $138.7 million, up 12% from $123.7 million in the year-earlier quarter, while earnings per diluted share reached $3.31, increasing 13% from $2.92 in the corresponding quarter of 2002.

•

Company-wide net orders for the fourth quarter ended November 30, 2003 increased 14% to 6,629 from the 5,831 net orders reported for the same quarter of 2002. Backlog at November 30, 2003, in terms of both units and dollars, exhibited strong growth from the previous year and provides excellent visibility for 2004. The Company’s backlog at November 30, 2003 stood at 14,675 units, which was up 2,652 units or 22% from 12,023 at November 30, 2002. The dollar value of backlog at November 30, 2003 totaled approximately $3.07 billion, up 31% from $2.35 billion for the same period of 2002.

•

On September 30, 2003, the Company expanded its operations into Chicago, Illinois by acquiring substantially all of the homebuilding assets of Zale Homes, a privately-held builder of single-family homes. The Zale acquisition marked the Company’s entry into the greater Chicago market, the fifth largest single-family homebuilding market in the U.S., and was the first extension of the Company’s operations beyond the Sunbelt. The Company hopes to leverage its new position in

the Midwest into future growth opportunities. The combined effects of the Company’s recent acquisition activity in the Southeast region and Chicago, development of start-up operations in two new Florida markets, Fort Myers and Treasure Coast, and growth in its other homebuilding operations are expected to drive the Company’s results to higher levels in 2004.

•

On October 30, 2003, the Company entered into a four-year, $1.00 billion unsecured revolving credit facility with a consortium of banks. The facility, which the Company believes is the largest multi-year revolver in the homebuilding industry, provides additional capacity for the Company’s future growth. At November 30, 2003, the Company had $803.2 million of available borrowing capacity under the new facility. In addition, the Company’s ratio of debt to total capital at November 30, 2003 improved 3.8 percentage points to 44.0%, the lowest level for the Company in the past five years, from 47.8% at November 30, 2002.

•

On December 5, 2003, after the end of the fiscal year, the Company announced that it had increased the annual cash dividend on its common stock to $1.00 per share from $.30 per share. The first quarterly cash dividend at the increased rate of $.25 per share will be paid on February 25, 2004 to shareholders of record on February 11, 2004.

“The outstanding financial performance achieved in the fourth quarter propelled KB Home to our seventh consecutive year of solid earnings,” said Bruce Karatz, chairman and chief executive officer. “During 2003, we delivered more than 27,000 homes from our geographically diverse operations, which, in the U.S., span from coast to coast. While expanding our operations in 2003, we did not lose our focus on improving customer satisfaction. In the latest JD Power and Associates survey, which provides an external, unbiased source for assessing customer satisfaction, KB Home ranked high among the national publicly-held homebuilders, with our customer satisfaction rating improving from the prior year.”

Unit deliveries rose 12% to 8,874 in the fourth quarter of 2003 from 7,932 in the same quarter of 2002 primarily due to the Company’s increased presence in the Southeast region as a result of its strategic investments there. Total revenues for the fourth quarter of 2003 amounted to $1.87 billion, up 11% from the year-earlier quarter revenues of $1.68 billion. Housing revenues rose 15% to $1.84 billion from $1.60 billion in the year-earlier quarter primarily as a result of an increase in unit volume. The Company’s overall average selling price for the fourth quarter of 2003 was up only slightly compared to the corresponding quarter of 2002.

Construction operating income for the fourth quarter increased 18% to $216.6 million in 2003 from $183.7 million in the year-earlier quarter due to the combined effects of higher unit volume and an improved operating margin. The Company’s construction operating margin increased to 11.7% in the fourth quarter of 2003 from 11.1% in the fourth quarter of 2002, mainly driven by growth in the housing gross margin to 23.4% in 2003 from 22.6% in 2002. Net income rose to $138.7 million in 2003, up 12% from $123.7 million in the fourth quarter of 2002.

“The free cash flow generated from the Company’s core operations enabled us to repurchase stock, acquire companies and invest in land during the year, while reducing our debt to total capital ratio to 44.0% at November 30, 2003 from 47.8% a year ago,” Karatz said. “With our leverage ratio below our

targeted range and substantial borrowing capacity available under our new $1.00 billion revolver, we believe we are set up to seize attractive new opportunities to increase our community counts, to expand our operations through acquisitions or de novo growth, and/or to repurchase shares as we move forward. After the end of our fiscal year, we more than tripled the cash dividend on our common stock, further evidencing our commitment to increasing shareholder value.”

For the year ended November 30, 2003, the Company’s return on average stockholders’ equity reached 25.9%, marking the sixth consecutive year in which the Company’s return on average stockholders’ equity exceeded 20%. In addition, the Company’s book value per share surpassed $40.00 for the first time in its history at November 30, 2003. The Company’s stockholders’ equity at November 30, 2003 reached $1.59 billion, increasing $318.5 million from the previous year despite $108.3 million in share repurchases made during the year. The Company continues to maintain a balanced approach to managing its business by strengthening its financial position through a combination of investing in de novo and organic growth, opportunistically buying back stock and achieving record results from its core operations.

The Company generated 6,629 net orders for the quarter ended November 30, 2003, which represented an increase of 14% from the 5,831 net orders posted for the same quarter of 2002. The strong net order growth drove the Company’s backlog value to approximately $3.07 billion at November 30, 2003, a 31% increase compared to $2.35 billion at November 30, 2002. Total backlog units at November 30, 2003 were up 22% year-over-year to 14,675 units from 12,023 units at November 30, 2002.

“The Company’s net orders in the fourth quarter remained solid and boosted year-end backlog to robust levels,” said Karatz. “Over the past ten years, our backlog value has grown at a compound annual rate of 34%. The Company’s outlook is positive as strategic investments in both new and existing markets, including recent acquisitions in the Southeast region, the acquisition of Zale in Chicago, and recently established start-up operations in Fort Myers and Treasure Coast, Florida have extended the platform for KB Home’s continued growth. The persistent housing supply-demand imbalance along with strong demographic trends and the potential for economic recovery and improved consumer confidence further reinforce the Company’s favorable point of view.”

The Conference Call on the Fourth Quarter 2003 Earnings will be broadcast live TOMORROW at 8:00 AM Pacific Standard Time, 11:00 AM Eastern Standard Time. To listen, please go to the Investor Relations section of the Company’s Web site at www.kbhome.com.

KB Home is one of America’s premier homebuilders with domestic operating divisions in the following regions and states: West Coast — California; Southwest — Arizona, Nevada and New Mexico; Central — Colorado, Illinois and Texas; and Southeast — Florida, Georgia and North Carolina. Kaufman & Broad S.A., the Company’s majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2003, the Company delivered 27,331 homes in the United States and France. It also operates KB Home Mortgage Company, a full-service mortgage company for the convenience of its buyers. Founded

in 1957, KB Home is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol “KBH.” For more information about any of KB Home’s new home communities, call 1-888-KB-HOMES or visit the Company’s Web site at www.kbhome.com.

Except for the historical information contained herein, certain matters discussed in this press release are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including any statements concerning future financial performance, business and prospects, and future Company actions and their expected results. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, the continued impact of terrorist activities and U.S. response, accelerating recessionary trends and other adverse changes in general economic conditions, material prices, labor costs, interest rates, the secondary market for loans, consumer confidence, competition, currency exchange rates (insofar as they affect the Company’s operations in France), environmental factors, government regulations affecting the Company’s operations, the availability and cost of land in desirable areas, unanticipated violations of Company policy, unanticipated legal proceedings, and conditions in the capital, credit and homebuilding markets. See the Company’s Annual Report on Form 10-K and its Annual Report to Shareholders for the year ended November 30, 2002 and its other filings for a further discussion of these and other risks and uncertainties applicable to the Company’s business.

KB HOME
CONSOLIDATED STATEMENTS OF INCOME
For the Twelve Months and Three Months Ended November 30, 2003 and 2002
(In Thousands, Except Per Share Amounts)


			Twelve Months						Three Months

			2003			2002			2003			2002

Total revenues			$	5,850,554		$	5,030,816		$	1,873,241		$	1,682,528

Construction:
	Revenues			5,775,429			4,938,894			1,855,042			1,656,312
	Costs and expenses			(5,212,530	)		(4,485,977	)		(1,638,472	)		(1,472,581	)

	Operating income			562,899			452,917			216,570			183,731
	Interest income			3,000			4,173			959			762
	Interest expense, net of amounts capitalized			(23,780	)		(32,730	)		(5,382	)		(10,045	)
	Minority interests			(26,889	)		(16,994	)		(14,199	)		(8,405	)
	Equity in pretax of unconsolidated joint ventures			2,457			4,378			1,004			772

	Construction pretax income			517,687			411,744			198,952			166,815

Mortgage banking:
	Revenues:
		Interest income		14,232			22,578			3,143			5,439
		Other		60,893			69,344			15,056			20,777

				75,125			91,922			18,199			26,216
	Expenses:
		Interest		(6,445	)		(11,467	)		(1,313	)		(2,955	)
		General and administrative		(32,903	)		(22,949	)		(8,702	)		(5,344	)

	Mortgage banking pretax income			35,777			57,506			8,184			17,917

Total pretax income				553,464			469,250			207,136			184,732
Income taxes				(182,700	)		(154,900	)		(68,400	)		(61,000	)

Net income			$	370,764		$	314,350		$	138,736		$	123,732

Basic earnings per share			$	9.41		$	7.57		$	3.57		$	3.09

Diluted earnings per share			$	8.80		$	7.15		$	3.31		$	2.92

Basic average shares outstanding				39,389			41,511			38,875			40,008

Diluted average shares outstanding				42,123			43,954			41,958			42,306


		November 30,		August 31,		November 30,
		2003		2003		2002

ASSETS
Construction:
	Cash and cash equivalents	$	116,555	$	50,387	$	309,434
	Receivables		430,266		369,088		403,957
	Inventories		2,883,482		2,867,152		2,173,497
	Investments in unconsolidated joint ventures		32,797		29,142		21,023
	Deferred income taxes		165,896		158,329		178,022
	Goodwill		228,999		215,520		194,614
	Other assets		124,751		129,395		110,887

			3,982,746		3,819,013		3,391,434

Mortgage banking:
	Cash and cash equivalents		21,564		20,124		20,551
	Receivables		219,532		264,185		599,569
	Other assets		12,017		13,428		13,986

			253,113		297,737		634,106

Total assets		$	4,235,859	$	4,116,750	$	4,025,540

LIABILITIES AND STOCKHOLDERS’ EQUITY
Construction:
	Accounts payable	$	554,387	$	523,089	$	487,237
	Accrued expenses and other liabilities		574,527		441,925		466,876
	Mortgages and notes payable		1,253,932		1,442,171		1,167,053

			2,382,846		2,407,185		2,121,166

Mortgage banking:
	Accounts payable and accrued expenses		31,858		34,537		34,104
	Notes payable		132,225		162,670		507,574
	Collateralized mortgage obligations secured by mortgage-backed securities		6,848		8,603		14,079

			170,931		205,810		555,757

Minority interests			89,231		77,458		74,266
Stockholders’ equity			1,592,851		1,426,297		1,274,351

Total liabilities and stockholders’ equity		$	4,235,859	$	4,116,750	$	4,025,540

KB HOME
SUPPLEMENTAL INFORMATION
For the Twelve Months and Three Months Ended November 30, 2003 and 2002


			Twelve Months				Three Months

Construction Revenues:			2003		2002		2003		2002

	Housing		$	5,642,770	$	4,855,854	$	1,840,344	$	1,601,954
	Commercial			107,015		43,802		1,377		17,974
	Land			25,644		39,238		13,321		36,384

		Total	$	5,775,429	$	4,938,894	$	1,855,042	$	1,656,312


				Twelve Months				Three Months

Costs and Expenses:				2003		2002		2003		2002

	Construction and land costs
		Housing		$	4,371,287	$	3,820,742	$	1,409,874	$	1,239,191
		Commercial			84,474		33,487		829		14,105
		Land			23,258		36,014		12,011		33,439

			Subtotal		4,479,019		3,890,243		1,422,714		1,286,735
	Selling, general and administrative expenses				733,511		595,734		215,758		185,846

			Total	$	5,212,530	$	4,485,977	$	1,638,472	$	1,472,581

KB HOME
SUPPLEMENTAL INFORMATION
For the Twelve Months and Three Months Ended November 30, 2003 and 2002


			Twelve Months				Three Months

Average Sales Price:			2003		2002		2003		2002

	West Coast		$	353,900	$	318,300	$	357,300	$	337,100
	Southwest			178,100		169,400		180,100		165,800
	Central			149,400		147,000		149,900		152,000
	Southeast			156,200		163,200		154,700		158,700
	France			202,600		161,000		206,200		172,200

		Total	$	206,500	$	190,800	$	207,400	$	202,000


			Twelve Months				Three Months

Unit Deliveries:			2003		2002		2003		2002

	West Coast			5,549		5,344		1,786		1,860
	Southwest			6,695		6,037		2,010		1,805
	Central			7,659		9,605		2,584		2,745
	Southeast			3,504		679		1,192		281
	France			3,924		3,787		1,302		1,241

		Total		27,331		25,452		8,874		7,932

	Unconsolidated Joint Ventures:			231		356		87		62


			Twelve Months				Three Months

Net Orders:			2003		2002		2003		2002

	West Coast			5,810		6,081		1,147		1,106
	Southwest			7,763		6,281		1,882		1,567
	Central			7,359		8,669		1,470		1,665
	Southeast			3,844		814		944		299
	France			4,118		3,940		1,186		1,194

		Total		28,894		25,785		6,629		5,831

	Unconsolidated Joint Ventures:			470		188		76		22


			November 30, 2003				November 30, 2002

Backlog Data:			Backlog Units		Backlog Value		Backlog Units		Backlog Value

	West Coast			2,641	$	941,825		2,380	$	789,719
	Southwest			3,863		710,725		2,795		475,208
	Central			3,571		554,336		3,659		539,428
	Southeast			2,105		347,040		1,024		168,561
	France			2,495		513,970		2,165		373,750

		Total		14,675	$	3,067,896		12,023	$	2,346,666

	Unconsolidated Joint Ventures:			521	$	90,716		845	$	9,000


FOR RELEASE, Thursday, December 18, 2003		For Further Information Contact:

2:30 PM Pacific Standard Time		Dom Cecere, Investor Contact
		(310) 231-4014 or dcecere@kbhome.com
		Kate Mulhearn, Media Contact
		(310) 231-4147 or kmulhearn@kbhome.com


			Twelve Months						Three Months

Interest Expense:			2003			2002			2003			2002

	Interest incurred		$	118,824		$	101,100		$	29,150		$	27,093
	Interest capitalized			(95,044	)		(68,370	)		(23,768	)		(17,048	)

		Interest Expense	$	23,780		$	32,730		$	5,382		$	10,045


		Twelve Months				Three Months

Other Information:		2003		2002		2003		2002

	Depreciation and amortization	$	21,509	$	17,173	$	5,567	$	4,852
	Amortization of previously capitalized interest		69,399		68,808		22,536		21,978