Press Releases

Hovnanian Enterprises Selected To Fortune’s List of 100 Fastest-Growing Companies for Third Consecutive Year

Hovnanian Enterprises, Inc., a leading national homebuilder, has been recognized by FORTUNE magazine as one of the 100 fastest-growing companies in the U.S. for a third consecutive year. On the recently published 2004 list, Hovnanian Enterprises, Inc. ranked 12th overall, moving up from 15th place in 2003. The Company ranked 14th on total return to investors with a three year annualized return of 69% and an annualized growth in revenue and earnings per share of 40% and 71%, respectively. In order to make the list, which was compiled by Zacks Investment Research, companies had to achieve annual sales and EPS growth of at least 20% for three straight years.  Companies were ranked by growth in revenue, earnings per share, and total stock-market return over the past three years, with the scores from each category being used to calculate the overall rank.  The complete list is presented in the September 6, 2004 issue of FORTUNE magazine.

"We are pleased to have been recognized as one of FORTUNE magazine’s 100 fastest-growing companies for a third consecutive year, a clear indication of our continued ability to create value for our shareholders,” said Ara K. Hovnanian, President and Chief Executive Officer.  “Our exceptional financial performance is primarily due to continuing market share gains and our diversified product type, in addition to the underlying strength of housing demand driven by demographics. Our talented group of associates continues to put forth an outstanding effort in executing our business strategies and we are making progress towards becoming a more efficient homebuilding company."  The Company is on track to deliver continued strong growth this fiscal year, with earnings per share projected to increase by more than 27% over reported earnings of $3.93 per diluted share in fiscal 2003.

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 Arizona, California, Florida, Maryland, Michigan, 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, Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Great Western Homes and Windward 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 2003 annual report, can be accessed through the investor relations page of the Hovnanian Web site at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

Note:   All statements in this Press Release that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and business conditions, (2) weather conditions, (3) changes in market conditions, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the homebuilding process and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in and price fluctuations of raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) geopolitical risks, terrorist acts and other acts of war and (13) other factors described in detail in the Company's Form 10-K for the year ended October 31, 2003.