KB HOME ELECTS MICHAEL G. McCAFFERY TO BOARD OF DIRECTORS

LOS ANGELES (July 21, 2003) – KB Home (NYSE: KBH) today announced that Michael G. McCaffery, president and chief executive officer of the Stanford Management Company, has been elected a director of the company. His election brings the total number of the KB Home’s directors to 9, of which 8 are non-employee directors of the Company.

 
“We are delighted to have Michael McCaffery join the KB Home Board,” said Bruce Karatz, chairman of the board and chief executive officer. “Mike has a wealth of business experience and is firmly committed to good corporate governance. He will be a valuable addition to our already very strong board. Our directors and I look forward to Mike’s contributions as we continue to grow the company.”

McCaffery oversees the $10.9 billion endowment of Stanford University’s financial and real estate investment assets. He was previously chairman and chief executive officer of Robertson Stephens Investment Bankers where he began in 1988 as a managing director and director of investment banking. Prior to Robertson Stephens, McCaffery was with Morgan Stanley and Company.

A graduate of Princeton University with a bachelor’s degree from the Woodrow Wilson School of Public and International Affairs, McCaffery was also a Rhodes Scholar. He received his MBA from Stanford University’s Graduate School of Business.

McCaffery is a member of the Advisory Boards of Accel Ventures, Stanford Graduate School of Business, and Princeton University’s Bendheim Institute of Finance. He is a Trustee of The Investment Fund for Foundations and RS Funds.

KB Home is one of America's largest homebuilders with domestic operating divisions in some of the fastest-growing areas of the country including Arizona, California, Colorado, Florida, Georgia, Nevada, New Mexico, North Carolina and Texas. Kaufman & Broad S.A., the company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2002, the company delivered homes to 25,565 families in the United States and France. It also operates 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 888-KB-HOMES or visit kbhome.com.

For more information contact:
Kate Mulhearn
(310) 231-4147
kmulhearn@kbhome.com