(McKinney, TX) K. Hovnanian Homes (NYSE: HOV) announced today it has purchased 88 lots in The Villas at Craig Ranch in McKinney, Texas. The deal will be the builder’s first big development in North Texas in 2010 and will feature seven new floor plans created specifically for Craig Ranch. Five of the plans are single story and targeted toward empty nesters.

“We are thrilled to welcome K. Hovnanian to the neighborhood,” said Miles Prestemon, Chief Operating Officer of Craig Ranch. “K. Hovnanian Homes is a proven, respected builder who has faired well in this economy. The homes they are building in The Villas are unique to this market.”

The homes will offer three elevations including Spanish, French, and Traditional with floor plans ranging from 2600 to 3200 square feet with most plans offering an optional bonus room. Homes will be priced from the mid-300s to mid-400s.

“There is a significant demand for single story homes with luxurious amenities,” said Jimmy Brownlee, DFW Region President for K. Hovnanian Homes. “People that are downsizing or empty nesters are asking for this type of lifestyle and home. We are responding to those requests in The Villas of Craig Ranch.”

Pre-sales for the homes will begin at the end of this month. For more information, call 469-737-6530, www.khov.com/craigranch, or visit the Information Center at Craig Ranch.

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About Craig Ranch

Craig Ranch is a 2,200 acre master-planned business, retail, and residential community in McKinney, Texas – recently ranked by Money Magazine as one of the top 15 “Best Places to Live” in America. Craig Ranch is a high profile, regional point of destination, with its open space and ambiance serving as a natural setting for outdoor concerts, water-inspired events, art fairs and exhibits. Soccer and baseball fields, hike and bike trails and dedicated green space give residents a sense of place they are proud to call home. Craig Ranch is an AT&T Connected Community. Its marquee venues include: the TPC at Craig Ranch, the Michael Johnson Performance Center, the Cooper Fitness Center & Spa at Craig Ranch, the Hospital at Craig Ranch, Dr Pepper StarCenter McKinney at Craig Ranch, The Ball Fields at Craig Ranch and The Premier Soccer Fields at Craig Ranch. More information on Craig Ranch can be found at: http://www.craigranchtx.com/.

About K. Hovnanian

K. Hovnanian is a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV), founded in 1959 by Kevork S. Hovnanian, Chairman. Headquartered in Red Bank, New Jersey, the Company is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, 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 Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes, First Home Builders of Florida and CraftBuilt 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. is located on the Company’s website at http://www.khov.com/.

Media Contacts:

Craig Ranch

Carey Marin

(214) 914-1157

carey@lemastergroup.com

K. Hovnanian Homes

Kim Tullos

(469) 737-1480

ktullos@khov.com