Market Overview

KB Home Announces Increase in Revolving Credit Facility to $500 Million and Extension of Maturity Date

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KB Home (NYSE:KBH) today announced it completed an amendment to its
unsecured revolving credit facility to increase the borrowing
availability to $500 million from $275 million, with a $250 million
letter of credit sublimit, and extend the maturity date to July 2021
from August 2019. The amended credit facility also contains an accordion
feature under which the borrowing availability can be further increased
to $600 million, subject to additional lender commitments.

"We are taking another important step forward in executing on our
returns-focused growth plan, by increasing the capacity of our credit
facility. With this added liquidity and financial flexibility, we expect
to further improve our asset efficiency, as we productively deploy
excess cash and utilize the credit facility to meet our short-term
capital needs," said Jeffrey Mezger, chairman, president and chief
executive officer. "We appreciate the support from our banking partners,
and the confidence in the strength of our business that the commitment
to a substantially larger credit facility reflects."

Citibank, N.A. is serving as the Administrative Agent for the amended
credit facility. Joint Lead Arrangers and Joint Bookrunners are
Citigroup Global Markets Inc., Bank of the West, Credit Suisse
Securities (USA), LLC, Deutsche Bank Securities, Inc., and Merrill
Lynch, Pierce, Fenner & Smith Incorporated. Lenders are Citibank, N.A.;
Bank of America, N.A., Bank of the West, Credit Suisse AG, Cayman
Islands Branch, and Deutsche Bank AG New York Branch, which are also
serving as Syndication Agents; and MUFG Union Bank, N.A., Wells Fargo
Bank, N.A., ZB, N.A. dba California Bank & Trust, and Texas Capital
Bank, N.A.

About KB Home

KB Home (NYSE:KBH) is one of the largest homebuilders in the United
States, with nearly 600,000 homes delivered since our founding in 1957.
We operate in 36 markets in 7 states, primarily serving first-time and
first move-up homebuyers, as well as 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, we are an industry leader in sustainability, building
innovative and highly energy- and water-efficient homes. 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 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, including, but not limited to the following: general economic,
employment and business conditions; 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; changes in interest rates; our debt level, including our ratio of
debt to capital, and our ability to adjust our debt level and maturity
schedule; our compliance with the terms of our amended credit facility;
our ability to successfully implement our returns-focused growth plan
and achieve the associated revenue, margin, profitability, cash flow,
community reactivation, land sales, business growth, asset efficiency,
return on invested capital, return on equity, net debt-to-capital ratio
and other financial and operational targets and objectives; 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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