M.D.C. Holdings Expects Third Quarter Earnings to Exceed Consensus Analyst Estimate; Reports 2001 Third Quarter Home Orders, Home Closings And Quarter-End Backlog
- Third quarter home closings increased 7% - Earnings per share should exceed consensus analyst estimate of $1.53 - Release of earnings anticipated on October 16, 2001

M.D.C. Holdings, Inc. ( today announced, in anticipation of meeting with investors in New York later this week, that it expects earnings per share for the three months ended September 30, 2001 to exceed the consensus analyst estimate of $1.53. MDC remains on pace to establish new records for revenues and earnings in 2001. The Company expects to release its 2001 third quarter earnings and hold its quarterly conference call and webcast on October 16, 2001. Please refer to the last paragraph of this release for a discussion of factors that may impact the Company's estimate of 2001 revenues and third quarter and total year earnings.

MDC closed 2,076 homes in the three months ended September 30, 2001, the highest third quarter level of home closings in the Company's history and 7% higher than the 1,943 homes closed for the same period in 2000. The Company ended the third quarter of 2001 with a backlog of 3,924 homes with an estimated sales value of $1.050 billion, compared with a backlog of 3,967 homes with an estimated sales value of $930 million at September 30, 2000.

The Company received orders for 1,628 homes and 6,328 homes, respectively, net of cancellations, during the third quarter and first nine months of 2001, compared with net orders for 2,092 homes and 6,381 homes, respectively, for the same periods in 2000. MDC received 405 net orders for new homes in September 2001, compared with 616 net orders received in September 2000. Levels of traffic and gross home orders declined by approximately 30% during the week immediately following the tragic events of September 11th, compared with the weeks prior to such events, while the absolute number of home order cancellations were consistent. During the last two weeks of September, traffic increased, cancellations remained relatively stable and home orders improved on both a gross and net basis, although not to weekly levels immediately prior to September 11th.

In September 2001, as well as throughout most of the 2001 third quarter, MDC orders continued to be impacted by temporary reductions in the number of active subdivisions in Virginia, Nevada and Phoenix. A significant number of active subdivisions in these markets also were approaching close-out in this period. The Company anticipates opening six, five and ten new subdivisions, respectively, in these markets in the next 90 days. In addition, while the number of active subdivisions increased in Colorado, many of these new subdivisions have been selling out of trailers with models under construction, contributing to a lower absorption pace. MDC expects to open 35 new model homes in Colorado subdivisions before the end of the year.

MDC, whose subsidiaries build homes under the name "Richmond American Homes," is one of the largest homebuilders in the United States. The Company's wholly owned subsidiary HomeAmerican Mortgage Corporation provides mortgage financing primarily for MDC's home buyers. MDC is a major regional homebuilder with a significant presence in some of the country's best housing markets. Richmond American Homes is the largest homebuilder in Colorado; among the top five homebuilders in northern Virginia, Phoenix and Tucson; and among the top ten homebuilders in suburban Maryland, Las Vegas, Southern California and Northern California.

Certain statements in this release, including those related to the Company's anticipated revenues and earnings, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the 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 factors include, among other things, (1) general economic and business conditions; (2) interest rate changes; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) demographic changes; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control.

                          M.D.C. HOLDINGS, INC.
                      Homebuilding Operational Data
                          (Dollars in Thousands)

                                Three Months               Nine Months
                             Ended September 30,       Ended September 30,
                                2001       2000         2001        2000

  Orders For Homes, net (units)
    Colorado                    494          668        2,101      2,134
    California                  362          415        1,217      1,272
    Arizona                     433          573        1,699      1,486
    Nevada                      161          199          591        631
    Virginia                    117          177          481        641
    Maryland                     61           60          239        217

      Total                   1,628        2,092        6,328      6,381

  Homes Closed (units)
    Colorado                    688          702        1,988      2,152
    California                  433          369        1,048        887
    Arizona                     611          405        1,622      1,094
    Nevada                      165          212          493        500
    Virginia                    107          175          413        497
    Maryland                     72           80          195        225

      Total                   2,076        1,943        5,759      5,355

                            September 30,     December 31,    September 30,
                                2001              2000            2000

  Backlog (units)
    Colorado                     1,498           1,385             1,608
    California                     677             508               642
    Arizona                        887             747               844
    Nevada                         296             198               268
    Virginia                       396             328               434
    Maryland                       170             126               171

      Total                      3,924           3,292             3,967

  Backlog Estimated Sales
   Value                    $1,050,000        $775,000          $930,000

  Active Subdivisions              141             133               120


SOURCE: M.D.C. Holdings, Inc.

Contact: Paris G. Reece III, Chief Financial Officer of M.D.C. Holdings,
Inc., +1-303-804-7706,; or Rodger Van Allen of Rubenstein
Associates, Inc., +1-212-843-8000,, for M.D.C.
Holdings, Inc.