Housing Bubble

Hovnanian Enterprises, Inc. announces 44 percent increase in June 2003 new home orders

July 02, 2003

RED BANK, N.J., /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, announced today preliminary new home orders for the month of June 2003.

                             June 2003   % Change   June 2003    % Change
                              Net New       From      Net New       From
                             Home Orders June 2002  Home Orders  June 2002
                                                  ($ in millions)

  Northeast Region              325        74.7%      $93.0        89.3%
  North Carolina                126        57.5%       23.8        49.2%
  Metro DC                      169        77.9%       61.7        97.4%
  California                    358        -8.0%      112.1        11.8%
  Texas                         248       172.5%       49.9       139.0%
       Total:                 1,226        43.9%     $340.5        55.1%

The number of active selling communities company-wide on June 30, 2003 increased 26.7 percent to 247 communities from 195 communities at the end of June 2002. The number of new home orders in the Northeast Region in June 2003 includes the effect of the Summit Homes acquisition, which closed in April 2003. The number of new home orders in Texas in June 2003 includes the effect of the Parkside Homes and Brighton Homes acquisitions, which closed in November 2002 and December 2002, respectively. The number of new home orders in California in June 2003 decreased 8 percent from June 2002 due primarily to a similar decline in the number of active selling communities in that state. Despite this decline, the dollar value of new home orders in California in June 2003 increased 11.8 percent.

Hovnanian Enterprises, Inc. founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation's largest homebuilders with operations in California, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian, Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders and Summit Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2002 annual report, can be accessed through the Investors page of the Hovnanian Web site at http://www.khov.com.

Source: Hovnanian Enterprises, Inc.