Top U.S. Homebuilder Announces Initiative with Environmental Group to Protect Endangered Forests

LOS ANGELES (March 30, 2000) – Kaufman and Broad Home Corporation (NYSE:KBH) and Natural Resources Defense Council (NRDC) today agreed to develop and implement a wood purchasing policy in order to help protect endangered old growth forests. Kaufman and Broad also announced its commitment to protecting the world’s ancient forests and will work with its suppliers and NRDC to phase out the use of such wood products in its homebuilding operations.

 

"We know that the world’s old growth forests are threatened and, ultimately, it is the responsibility of every individual and corporate citizen to do their part for forest conservation," said Jeff Mezger, chief operating officer of Kaufman and Broad. "We’re confident that our work with NRDC will help us in this critical effort."

Through previous cooperative efforts between NRDC and Kaufman and Broad, the Company has already developed ways to use wood more efficiently. It also will work with NRDC to phase in use of certified, sustainably harvested wood where feasible. Similar initiatives have been accomplished with respect to other types of environmental issues as well.

"This is a great victory for the environment," said Sami Yassa, a senior scientist in NRDC’s forestry program. "Kaufman and Broad’s commitment to forest-friendly building will help us protect threatened areas. NRDC applauds Kaufman and Broad and is pleased to be working with them to protect the world’s forests."

Kaufman and Broad also has created a senior level environmental audit officer position which is expected to be filled within the coming weeks. The environmental officer is expected to work closely with both NRDC and with the Company’s suppliers and strategic partners to determine an appropriate time frame for creating and implementing a wood purchasing policy.

"This sends a clear market signal to wood suppliers that there is strong demand for forest-friendly buildings and wood products. Forest friendly building means eliminating use of old growth; using certified, sustainably harvested wood; and using wood efficiently," said Yassa.

NRDC’s Forestry Initiative promotes wood-efficiency through building methods and materials that reduce wood use in construction, including alternatives to wood. It also promotes certification as a seal of approval for wood that is harvested using environmentally and socially responsible forest management practices. The seal enables consumers to identify wood products from well-managed sources, so they can use their purchasing power to influence and reward improved forest management activities around the world.

"The greatest challenge will be to balance environmental sensitivity with our mission of providing affordably-priced homes," Mezger explained.

Kaufman and Broad builds affordable homes primarily for first time homebuyers and first move-up buyers, taking great pride in helping working people, young families and immigrant families purchase their first home. Any wood purchasing policy will be developed in a way that does not add appreciably to the cost of the home, thereby assuring that the greatest number of potential buyers will be able to fulfill the dream of home ownership.

The Natural Resources Defense Council is a national, nonprofit organization of scientists, lawyers and environmental specialists dedicated to protecting public health and the environment. Founded in 1970, NRDC has more than 400,000 members nationwide, served by offices in New York, Washington, Los Angeles and San Francisco. More information on NRDC is available at its Web site, www.nrdc.org.

For more information about a Kaufman and Broad new home community in your area, call 1-888-KB-HOMES or visit the Company’s Web site at www.kbhome.com.

Kaufman and Broad Home Corporation is one of the largest homebuilders in the United States. Headquartered in Los Angeles, the Company has operating divisions in Arizona, California, Colorado, Nevada, New Mexico and Texas. Kaufman & Broad S.A., the Company’s majority owned subsidiary, is also one of the largest homebuilders in France.

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