2006 Media Releases & Alerts

For Immediate Release
Contact: Kimberly Warren

K. Hovnanian Homes Earns National Housing Quality Certification for Outstanding Quality Assurance and Customer Satisfaction

Landmark National Housing Quality Program Provides Third-Party Certification and Increases Customer Satisfaction

September 07, 2006, Upper Marlboro, Md. - The NAHB Research Center today announced the National Housing Quality (NHQ) Certification of K. Hovnanian Homes' Virginia Region. Headquartered in Chantilly, Va., the local division of national production builder K. Hovnanian Enterprises (NYSE: HOV) earned the designation following a rigorous NAHB Research Center audit of the implementation of their quality assurance systems. With divisions currently operating in 18 other states, K. Hovnanian's Virginia division is the first to be NHQ Certified, and is the second of only two home builders in the state to join the elite group of companies nationwide that have successfully completed the distinguished program since its launch in early 2005. Additional home builders participating in the program are working toward certification in 2006, signaling a growing, industry-wide commitment to improving the quality of our nation's homes.

Participation in the NHQ Certified Builder program is designed to increase efficiency and consistency in building practices. Formally launched at the 2005 International Builders' Show, the NHQ Certified Builder program provides a rigorous and complete review of business practices, and ensures that all elements of the company's quality assurance system are incorporated to provide greater customer satisfaction. To achieve certification, K. Hovnanian participated in field and office training to implement the quality program, work more efficiently with their trade contractors, and maintain the continuous improvement efforts required by all NHQ Programs.

NAHB Research Center president Michael Luzier said, "I am pleased with how far the NHQ Certified Builder program has come, and with the increased efficiency and customer satisfaction that participating builders are achieving. This program has, and will continue to play a vital role the evolution of quality assurance in home building, and I would like to thank K. Hovnanian's Virginia division for taking part in it."

K. Hovnanian Homes -The First Name in Lasting Value

K. Hovnanian is a nationally recognized home builder that has sold more than 233,000 homes since the company was founded in 1959. Although started as a family-owned business, the company has expanded over the years to become a family of home builders with localized expertise in numerous markets throughout the United States. K. Hovnanian's local Virginia division is currently ranked as the second largest builder in the Northern Va. and Metro Washington, D.C. area. Even with its impressive growth and current ranking by FORTUNE magazine as one of the nation's 100 fastest growing companies, K. Hovnanian maintains an unwavering commitment to continuous improvement and customer satisfaction; demonstrated by its successful certification by the NAHB Research Center's NHQ Program.

Charles Merlin, vice president of operations for K. Hovnanian's Landover Group said, "Achieving NHQ certification is a demonstration of K. Hovnanian Homes' Virginia Region's commitment to continual improvement. Our Company's vision is to be 'The best home builder in the nation…in the eyes of our customers, our associates, our business partners, and our shareholders. As a result of pursuing NHQ certification, K. Hovnanian Homes has realized quality and efficiency gains in our finished product as well as in the process that underpins our operations. The Research Center's certification program for builder and trade partner alike are powerful platforms, raising the home building industry's quality bar higher."

About the National Housing Quality Program: The NAHB Research Center launched the NHQ Program in 1993. The NHQ Program has introduced many of the concepts of the worldwide quality revolution to home building and remodeling, and provides numerous opportunities for collaboration among the various industry stakeholders. NHQ activities include the Certified Builder Program, Certified Trade Contractor Program, Manufacturer Training Certification program, and co-sponsorship of the National Housing Quality Award Program. Builders interested in starting on the path to quality certification can visit www.nahbrc.com/quality.

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09/06

The NAHB Research Center, located in Upper Marlboro, Md., promotes innovation in housing technology to improve the quality, durability, affordability, and environmental performance of homes and home building products. Created over 40 years ago as a subsidiary of the National Association of Home Builders (NAHB), the NAHB Research Center has established itself as the source for reliable, objective information and research on housing construction and development issues. Through its various testing and certification services, the Research Center seal is internationally-recognized as a mark of product quality and an assurance of product performance.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "NAHB Research Center." If clarification of the acronym is necessary, the phrase, "a subsidiary of the National Association of Home Builders (NAHB)," can follow. In subsequent mentions, "Research Center" is the only acceptable and accurate alternative reference.