Exhibit 99

News Release The Ryland Group, Inc.
www.ryland.com

FOR IMMEDIATE RELEASE	CONTACT:	Cathey Lowe, Senior Vice President, Finance
		Investor Relations	(818) 223-7530
		Marya Jones, Director, Communications
		Media Relations	(818) 223-7591

RYLAND REPORTS 32% INCREASE IN FOURTH-QUARTER EPS,
27% INCREASE IN SALES, AND INCREASED EARNINGS GUIDANCE FOR 2005

CALABASAS, Calif. (January 18, 2005) — The Ryland Group, Inc. (NYSE: RYL), today announced record results for its fourth quarter ended December 31, 2004, including the highest fourth-quarter consolidated net earnings, revenues, new orders, closings, backlog and earnings per share in its history. Highlights include:

•   Diluted earnings of $2.17 per share for the quarter ended December 31, 2004, representing an increase of 31.5 percent over the same period in the prior year

•   Consolidated revenues of $1.2 billion for the quarter ended December 31, 2004, reflecting an increase of 16.1 percent, compared to $1.1 billion for the quarter ended December 31, 2003

•   Record fourth-quarter new orders of 3,217, signifying a 27.1 percent increase over the fourth quarter ended December 31, 2003

•   Record fourth-quarter closings of 4,654, reflecting an increase of 5.8 percent over the fourth quarter of 2003, and representing the highest quarterly closings in the Company’s history

•   Record backlog units of 7,620, up 30.5 percent at December 31, 2004, compared to December 31, 2003, with dollar backlog totaling $2.1 billion, up 43.6 percent from December 31, 2003, the highest year-end backlog in the Company’s history

•   The repurchase of approximately 370,000 shares of Ryland common stock during the fourth quarter of 2004

•   Increased earnings guidance for 2005, with earnings per share expected to exceed $7.25.

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RYLAND FOURTH-QUARTER RESULTS

RECORD RESULTS HIGHLIGHT FOURTH QUARTER

     The Company’s consolidated net earnings for the quarter ended December 31, 2004, represented a fourth-quarter record at $108.7 million, or $2.17 per diluted share, compared to $86.1 million, or $1.65 per diluted share, for the fourth quarter of 2003.

     The homebuilding segment reported record quarterly pretax earnings of $180.5 million during the fourth quarter of 2004, representing a 25.3 percent rise over the $144.1 million reported for the fourth quarter of 2003. The increase over the prior year was primarily attributable to higher sales prices and closing volume.

     Homebuilding revenues rose $0.2 billion, or 16.3 percent, to $1.2 billion for the fourth quarter of 2004, compared to $1.0 billion for the same period in the prior year. This was primarily due to a 10.0 percent increase in the average closing price of a home from $231,000 for the quarter ended December 31, 2003, to $254,000 for the quarter ended December 31, 2004, and an increase in volume. Homebuilding revenues for the fourth quarter of 2004 included $37.9 million from land sales, compared to $33.5 million for the fourth quarter of 2003, which contributed net gains of $16.3 million and $8.4 million to pretax earnings in 2004 and 2003, respectively.

     New orders of 3,217 for the fourth quarter of 2004 represented a 27.1 percent increase, compared to new orders of 2,532 for the fourth quarter of 2003. The Company operated in 339 active communities at December 31, 2004, compared to 333 active communities at December 31, 2003. Its backlog at the end of the fourth quarter of 2004 increased to 7,620 outstanding contracts from 5,841 outstanding contracts at December 31, 2003, a rise of 30.5 percent. The dollar value of the Company’s backlog at December 31, 2004, was $2.1 billion, or an increase of 43.6 percent over that of December 31, 2003.

     Gross profit margins from home sales averaged 22.5 percent for the fourth quarter of 2004, compared to 22.9 percent for the fourth quarter of 2003. Selling, general and administrative expenses, as a percentage of revenue, were 8.3 percent for the fourth quarter of 2004, versus 9.1 percent for the same period in 2003, due, in part, to additional leverage in new markets. The homebuilding segment capitalized all interest incurred during the fourth quarter of 2004 due to increased development activity during the period. Interest expense was $0.9 million for the fourth quarter of 2003. The pretax homebuilding margin was 14.8 percent for the fourth quarter of 2004, compared to 13.7 percent for the fourth quarter of 2003.

     Corporate expenses were $21.7 million for the fourth quarter of 2004, compared to $20.4 million for the same period in the prior year. This increase was primarily attributable to a rise in incentive compensation, which was due to improvement in the Company’s financial results.

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RYLAND FOURTH-QUARTER RESULTS

     The Company’s financial services segment, which includes Ryland Mortgage Company and its title, escrow and insurance services, reported pretax earnings of $17.9 million for the fourth quarter of 2004, compared to $17.6 million for the same period last year. This increase was primarily attributable to the number of mortgages originated and increased profitability in the Company’s title, escrow and insurance operations; partially offset by reduced gains on the sale of mortgages and loan servicing rights as a result of an increase in less profitable adjustable-rate mortgage product and a more competitive marketplace. Mortgage origination dollars increased by 15.8 percent from $676.3 million for the quarter ended December 31, 2003, to $783.1 million for the quarter ended December 31, 2004, as a result of a 4.6 percent increase in units originated and a 10.7 percent rise in average loan size. The capture rate of mortgages originated for homebuilding customers was 82.7 percent for the fourth quarter of 2004, compared to 83.5 percent for the fourth quarter of 2003.

NEW ANNUAL RECORDS ESTABLISHED FOR 2004

     Consolidated net earnings for the twelve months ended December 31, 2004, increased 32.6 percent to a record $320.5 million, or $6.36 per diluted share, from $241.7 million, or $4.56 per diluted share, for the twelve months ended December 31, 2003.

     The Company’s homebuilding segment reported pretax earnings of $530.1 million for the twelve months ended December 31, 2004, compared to $394.6 million for the same period in the prior year, representing an increase of 34.3 percent. Homebuilding revenues rose $0.5 billion to $3.9 billion for the twelve months ended December 31, 2004, compared to $3.4 billion for the same period in the previous year. Homebuilding revenues for the twelve months ended December 31, 2004, included revenues of $74.2 million from land sales, compared to $56.0 million for the twelve months ended December 31, 2003, contributing net gains of $25.2 million and $10.5 million to pretax earnings, respectively. The Company closed 15,101 homes during the twelve months ended December 31, 2004, representing the highest annual closings in its history and an increase of 2.6 percent over the prior year. New orders were 16,880 for the twelve months ended December 31, 2004, representing an increase of 11.1 percent and an annual record, compared to 15,197 for the same period in 2003.

     Housing gross profit margins rose to 23.2 percent for the twelve months ended December 31, 2004, versus 22.1 percent for the same period in 2003. This improvement in gross margins was attributable to sales prices rising at a greater rate than costs and an increase in the percentage of closings from higher-margin markets. Selling, general and administrative expenses, as a percentage of revenue, were 9.6 percent for the twelve months ended December 31, 2004, versus 9.9 percent for the corresponding period in 2003. Interest expense decreased $5.8 million to $0.2 million in 2004, compared to the annual results for 2003. This was primarily attributable to an increase in capitalized interest, which resulted from a heightened level of development activity, and partially offset by a reduction in interest earnings on cash investments.

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RYLAND FOURTH-QUARTER RESULTS

     Corporate expenses increased to $65.8 million for the twelve months ended December 31, 2004, compared to $61.3 million for the same period in the prior year. The rise in corporate expenses was primarily attributable to increased incentive compensation, which was related to improvement in the Company’s financial results.

     The Company’s financial services segment reported pretax earnings of $56.9 million for the twelve months ended December 31, 2004, compared to $62.8 million for the same period last year. This decrease was primarily due to reduced gains on the sale of mortgages and loan servicing rights, which resulted from an increase in less profitable adjustable-rate mortgage product and a more competitive marketplace; and was partially offset by increased profitability from the title, escrow and insurance operations and a gain from the sale of a portion of the investment portfolio.

STOCK REPURCHASE PROGRAM

     The Company repurchased approximately 370,000 shares of its common stock during the fourth quarter of 2004. At December 31, 2004, the Company had authorization from its Board of Directors to purchase approximately 2.9 million additional shares.

2005 EARNINGS GUIDANCE

     The Company anticipates that diluted earnings per share will exceed $7.25 for the fiscal year ending December 31, 2005.

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RYLAND FOURTH-QUARTER RESULTS

     With headquarters in Southern California, Ryland is one of the nation’s largest homebuilders and a leading mortgage-finance company. The Company currently operates in 27 markets across the country and has built more than 230,000 homes and financed more than 200,000 mortgages since its founding in 1967. Ryland is a Fortune 500 company listed on the New York Stock Exchange under the symbol “RYL.” Previous news releases may be obtained at www.ryland.com.

Note: Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements are subject to risks and uncertainties which include, among others:

•   economic changes nationally or in the Company’s local markets, including volatility in interest rates, inflation, changes in consumer confidence levels and the state of the market for homes in general;

•   the availability and cost of land;

•   increased land development costs on projects under development;

•   shortages of skilled labor or raw materials used in the production of houses;

•   increased prices for labor, land and raw materials used in the production of houses;

•   increased competition;

•   failure to anticipate or react to changing consumer preferences in home design;

•   delays in land development or home construction resulting from adverse weather conditions;

•   potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations, or governmental policies (including those that affect zoning, density, building standards and the environment);

•   delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company’s communities and land activities; or

•   other factors over which the Company has little or no control.

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Five financial-statement pages follow.

CONSOLIDATED STATEMENTS OF EARNINGS
The Ryland Group, Inc. and subsidiaries
(in thousands, except share data)

	Three months ended December 31,				Twelve months ended December 31,
	2004		2003		2004		2003
REVENUES
Homebuilding	$	1,218,580	$	1,047,939	$	3,867,086	$	3,355,450
Financial services		25,799		24,299		84,735		88,679
TOTAL REVENUES		1,244,379		1,072,238		3,951,821		3,444,129
EXPENSES
Cost of sales		936,407		807,502		2,964,087		2,615,975
Selling, general and administrative		101,636		95,450		372,660		333,726
Financial services		7,711		6,467		26,825		24,339
Corporate		21,748		20,416		65,810		61,263
Interest		202		1,184		1,227		7,523
Expenses related to early retirement of debt		—		—		—		5,086
TOTAL EXPENSES		1,067,704		931,019		3,430,609		3,047,912
Earnings before taxes		176,675		141,219		521,212		396,217
Tax expense		68,020		55,076		200,667		154,525
NET EARNINGS	$	108,655	$	86,143	$	320,545	$	241,692
NET EARNINGS PER COMMON SHARE
Basic	$	2.29	$	1.75	$	6.72	$	4.86
Diluted	$	2.17	$	1.65	$	6.36	$	4.56
AVERAGE COMMON SHARES OUTSTANDING
Basic		47,481,284		49,095,628		47,678,887		49,718,032
Diluted		50,026,130		52,363,682		50,378,840		53,044,404

CONSOLIDATED BALANCE SHEETS
The Ryland Group, Inc. and subsidiaries
(in thousands, except share data)

	December 31,		December 31,
	2004		2003
ASSETS
Cash and cash equivalents	$	88,388	$	316,704
Housing inventories
Homes under construction		1,002,214		734,280
Land under development and improved lots		877,801		602,504
Consolidated inventory not owned		144,118		59,868
Total inventories		2,024,133		1,396,652
Property, plant and equipment		50,258		40,853
Net deferred taxes		45,708		37,443
Purchase price in excess of net assets acquired		18,185		18,185
Other		198,298		197,753
TOTAL ASSETS		2,424,970		2,007,590
LIABILITIES
Accounts payable		200,611		157,488
Accrued and other liabilities		500,808		395,033
Debt		558,942		573,876
TOTAL LIABILITIES		1,260,361		1,126,397
MINORITY INTEREST		107,775		56,651
STOCKHOLDERS’ EQUITY
Common stock, $1.00 par value:
Authorized - 80,000,000 shares
Issued - 47,348,070 shares at December 31, 2004 (48,552,494 shares at December 31, 2003)		47,348		48,552
Retained earnings		1,009,242		774,859
Accumulated other comprehensive income		244		1,131
TOTAL STOCKHOLDERS’ EQUITY		1,056,834		824,542
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,424,970	$	2,007,590

SEGMENT INFORMATION
The Ryland Group, Inc. and subsidiaries
(in thousands)

	Three months ended December 31,						Twelve months ended December 31,
	2004			2003			2004			2003
Earnings before taxes
Homebuilding	$	180,537		$	144,064		$	530,129		$	394,631
Financial services		17,886			17,571			56,893			62,849
Corporate		(21,748	)		(20,416	)		(65,810	)		(61,263	)
Total	$	176,675		$	141,219		$	521,212		$	396,217

HOMEBUILDING OPERATIONAL DATA
The Ryland Group, Inc. and subsidiaries

				North		Texas		Southeast		West		Total
For the three months ended December 31,
	New Orders (units)
			2004		866		621		1,003		727		3,217
			2003		822		344		878		488		2,532
	Closings (units)
			2004		1,113		1,119		1,417		1,005		4,654
			2003		1,154		985		1,376		885		4,400
	Average Closing Price (in thousands)
			2004	$	301	$	159	$	238	$	328	$	254
			2003	$	274	$	162	$	213	$	277	$	231
For the twelve months ended December 31,
	New Orders (units)
			2004		4,419		3,299		5,009		4,153		16,880
			2003		4,385		3,141		4,648		3,023		15,197
	Closings (units)
			2004		4,349		3,116		4,374		3,262		15,101
			2003		4,393		3,291		4,216		2,824		14,724
	Average Closing Price (in thousands)
			2004	$	288	$	165	$	230	$	312	$	251
			2003	$	259	$	159	$	208	$	270	$	224
	Outstanding Contracts at December 31,
		Units
			2004		1,808		992		2,858		1,962		7,620
			2003		1,738		809		2,223		1,071		5,841
		Dollars (in millions)
			2004	$	568	$	173	$	725	$	649	$	2,115
			2003	$	503	$	142	$	508	$	320	$	1,473
		Average Price (in thousands)
			2004	$	314	$	175	$	254	$	331	$	278
			2003	$	289	$	175	$	229	$	299	$	252

FINANCIAL SERVICES SUPPLEMENTAL INFORMATION
The Ryland Group, Inc. and subsidiaries
($s in thousands)

	Three months ended December 31,						Twelve months ended December 31,
RESULTS OF OPERATIONS	2004			2003			2004			2003
Revenues
Net gains on sales of mortgages and mortgage servicing rights	$	12,721		$	13,906		$	45,040		$	53,938
Title/escrow/insurance		7,840			5,835			23,740			18,651
Net origination fees		3,989			3,433			10,768			10,731
Interest
Mortgage-backed securities and notes receivable		394			836			2,639			4,274
Other		325			289			935			1,068
Total interest		719			1,125			3,574			5,342
Gain on sale of investments		—			—			1,074			—
Other		530			—			539			17
Total revenues		25,799			24,299			84,735			88,679
Expenses
General and administrative		7,711			6,467			26,825			24,339
Interest		202			261			1,017			1,491
Total expenses		7,913			6,728			27,842			25,830
Pretax earnings	$	17,886		$	17,571		$	56,893		$	62,849
OPERATIONAL DATA
Retail operations:
Originations (units)		3,598			3,441			11,920			11,983
Ryland Homes closings as a percentage of total closings		99.1	%		99.4	%		99.0	%		98.8	%
Ryland Homes origination capture rate		82.7	%		83.5	%		84.2	%		85.4	%
Investment operations:
Mortgage-backed securities and notes receivable average balance	$	10,668		$	26,963		$	18,603		$	33,000