KAUFMAN AND BROAD PURCHASES 4 MILLION OF ITS SHARES FROM LEWIS SHAREHOLDERS

LOS ANGELES (September 12, 2000) - Kaufman and Broad Home Corporation (NYSE: KBH) today announced that it has agreed to purchase 4 million of the 7,886,686 shares that the Company issued in its January, 1999 acquisition of the homebuilding assets of the Lewis Homes group of companies from members of the Lewis family and a former senior executive officer of Lewis Homes.

 
Kaufman and Broad will pay $26 per share for the 4 million shares, which are part of the Company's previously-announced share repurchase program. Since the initial repurchase on August 11, 1999 under the program, the Company has purchased 14.5 million shares at an average price of $22.66 per share. The Lewis Shares purchase completes the current stock repurchase program authorized by the Company's board of directors.

The terms of the Lewis Shares purchase include a cash payment of 25% of the total purchase price and the issuance of a note to the Lewis Shareholders that extinguishes the balance of the purchase price in three principal payments in January, 2001, June, 2001 and December, 2001.

Kaufman and Broad Home Corporation is one of America's premier homebuilders with operating divisions in Arizona, California, Colorado, Nevada, New Mexico and Texas. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In 1999, the Company delivered homes to 22,460 families in the United States and in France. It also operates a full- service mortgage company for the convenience of its buyers. Founded in 1957, Kaufman and Broad is a Fortune 500 Company listed on the New York Stock Exchange under the ticker symbol "KBH". For more information about any of Kaufman and Broad's new home communities, call 1-888-KB-HOMES or visit the Company's Web site at www.kbhome.com.

For More Information Contact:
Kate Mulhearn
(310) 231-4015
kmulhearn@kbhome.com