NET-ZERO ENERGY HOME BUILT BY KB HOME AND CREATED WITH MARTHA STEWART OPENS

2011 Builder Magazine Concept Home is a paragon of efficiency and full of “good things”

ORLANDO, Fla. (January 11, 2011) - Representatives from KB Home (NYSE: KBH), Martha Stewart Living Omnimedia (NYSE: MSO) and Builder magazine today unveiled the KB Home GreenHouse™: An Idea Home Created with Martha Stewart. The innovative and expertly-designed net-zero energy home is the 13th in Builder Magazine’s Concept Home series tradition that annually showcases an impactful and interesting new concept in homebuilding during the industry’s premier trade conference, the NAHB International Builders’ Show (IBS).

With the IBS set to begin tomorrow, the project partners hosted members of the media during a special event at the home. Members of the media were among the first to tour the KB Home Greenhouse and participated in a question and answer session with Martha Stewart, founder of Martha Stewart Living Omnimedia; Jeffrey Mezger, president and chief executive officer of KB Home; and Boyce Thompson, editorial director for Builder magazine.

“We’re excited to open this year’s home for tours,” said Boyce Thompson. “The KB Home GreenHouse embodies the Concept Home philosophy of bringing together some of the best minds in the business to create a project that has broad appeal, incorporates innovative new products and ideas and will serve to educate other homebuilders.”

Attendees were impressed with the elegantly traditional exterior, free flowing and inviting interior as well as the home design’s ability to bring the outdoors in via a telescoping patio door that spans the length of the kitchen and leads to a spacious lanai.

“We were happy to be a part of this project with KB Home,” said Martha Stewart. “It allowed us to build on our already successful partnership by creating the ultimate ‘green’ home that is not only environmentally friendly, but also beautiful, functional and affordable.”

In addition to its aesthetic appeal, the KB Home Greenhouse achieves a new dimension of environmentally friendly building for KB Home; it is the company’s first net-zero energy home, meaning it is intended to produce more energy than it consumes over the span of a year. As such, it has been labeled as a “Maximized Energy-Efficient Home” by the U.S. Department of Energy. Additionally, the home has been recognized with a variety of other green building achievements, including the U.S. Environmental Protection Agency’s ENERGY STAR® and WaterSense® qualifications, U.S. Green Building Council’s Leadership in Energy and Environmental Design® (LEED) for Homes Platinum rating and Environments for Living® green certification.

“In creating the KB Home GreenHouse, we were able to combine our industry-leading position in environmentally friendly building with our reputation for innovation," said Jeffrey Mezger. “With an established track record of building all ENERGY STAR homes in our new communities, we took this opportunity to go above and beyond and built a net-zero energy home that incorporates new ideas and technologies, including a real-time energy monitoring system and a solar thermal water heater, that we believe will one day be standard in all new homes.”

KB Home was recently recognized as the #1 Green Homebuilder for the second consecutive time by Calvert Investments. Participation in experimental projects like the Builder Magazine Concept Home was one of many criteria used by the firm in its evaluation of sustainable practices in the homebuilding industry.