M.D.C. Holdings Reports Record 2003 First Quarter Earnings
* Record first quarter net income of $37.0 million, a 15% increase * Earnings per share of $1.36 vs. $1.16 a year ago * Highest first quarter homebuilding revenues and operating profits in Company history * Record home closings, home orders and quarter-end backlog * Home gross margins of 22.8%, 23.7% before interest * Net debt-to-capital ratio of .30

M.D.C. Holdings, Inc. ( ) today announced net income for the three months ended March 31, 2003 of $37.0 million, or $1.36 per share, the highest first quarter net income in the Company's history and 15% higher than net income of $32.3 million, or $1.16 per share, for the same period in 2002. Total revenues for the first quarter of 2003 were $570 million, compared with revenues of $456 million in the 2002 first quarter.

Larry A. Mizel, MDC's chairman and chief executive officer, stated, "We're off to a very good start in 2003, as we posted record first quarter revenues and operating earnings for the sixth consecutive year. Both our homebuilding and mortgage lending businesses contributed new Company highs for first quarter operating profits on the strength of record home closings and mortgage loan originations. These results, combined with record first quarter home orders reported earlier, reflect the success of our organic expansion and our operating strategy, as well as the resiliency of the homebuilding industry in the face of tremendous challenges to our nation and our economy. With our first quarter performance, a backlog of 5,300 homes and more than 200 active subdivisions in some of the best markets for homebuilding in the country, we are positioned to meet our goals for 2003 of closing more than 10,500 homes and achieving new Company milestones for revenues and net income."

Mizel continued, "We have managed our growth with the objective of maximizing value for our shareowners, which we believe begins with the continued strengthening of our balance sheet and maintaining substantial liquidity. Consistent with this focus, our leverage and interest coverage ratios in the 2003 first quarter continue to rank among the best in the homebuilding industry, and we ended the quarter with over $550 million in liquidity. We further enhanced shareowner value in the quarter with the repurchase of 727,100 shares of MDC common stock at an average cost of $36.76 per share, contributing to our repurchase of almost 6% of our outstanding stock over the last nine months. Our recently approved repurchase authorization will enable us to repurchase up to an additional 1,769,600 shares. MDC's growing financial strength was recognized by all three major rating agencies in the 2003 first quarter, with Moody's Investors Service assigning an 'investment grade' rating of 'Baa3' to our senior debt and both Standard & Poor's and Fitch Ratings increasing their ratings outlooks to positive."

Record Homebuilding and Financial Services Results

Operating profits from the Company's homebuilding operations for the first quarter of 2003 increased to $64.5 million, compared with $57.8 million for the same period in 2002. The 2003 increase primarily resulted from a 25% increase in homes closed. These increased home closings, partially offset by a $2,300 decrease in average selling prices, contributed to record first quarter home sales revenues of $554 million, 24% higher than revenues of $445 million in the 2002 first quarter. Home gross margins were 22.8% for the three months ended March 31, 2003, compared with 22.6% in the 2002 fourth quarter and 23.4% for the first three months in 2002.

Paris G. Reece III, MDC's executive vice president and chief financial officer, said, "Home closings increased significantly in Las Vegas, Phoenix and our California markets, primarily due to higher backlogs at the beginning of the year. Average selling prices in the 2003 first quarter were relatively consistent with those of a year ago. However, we anticipate that our average selling prices will decline sequentially from current levels in the second and third quarters of 2003 by as much as 5% each quarter. These expected declines primarily result from the implementation of our strategy to build a greater number of homes in more affordable price points in most of our markets."

Reece continued, "Over the last year, we have experienced substantial growth in most of our markets outside of Colorado and California, particularly in Virginia, Las Vegas and Phoenix, where active subdivisions have increased by 19, 14 and 10, respectively, from March 31, 2002. Overall, our active subdivisions are 36% higher than at this time last year and up 15% since the end of 2002. These increases have contributed to our record home orders in each of the last 13 months, including a 21% year-over-year increase in the 2003 first quarter. Over the balance of 2003, we will continue to evaluate prudent uses of our capital in view of current economic conditions, opportunities to maximize value to our shareowners and our strategy for disciplined, opportunistic growth. Given our growth in the first quarter, we anticipate that our active subdivision count will remain relatively consistent with current levels through the third quarter, with an increase of approximately 10% expected in the fourth quarter as we prepare for meeting our growth objectives for 2004."

The Company's financial services segment, primarily mortgage lending operations, reported record operating profits of $7.6 million for the first three months of 2003, 50% higher than the $5.0 million reported for the same period in 2002. The improvement in operating profits primarily was due to increased gains from sales of mortgage loans in the first quarter of 2003. In addition, the Company recognized increased loan origination fees in the 2003 first quarter, primarily resulting from a greater volume of loans originated for MDC's homebuyers. The Company originated or brokered $364 million in mortgage loans for 81% of MDC's homebuyers in the 2003 first quarter, compared with $306 million in mortgage loans for 83% of MDC's homebuyers for the same period in 2002.

Strengthened Balance Sheet and Improved Operating Efficiency

The Company continued to strengthen its balance sheet and improve the efficiency of its operations in the first quarter of 2003. This success is represented by the achievement of ratios of homebuilding and corporate net debt-to-capital and net debt-to-EBITDA, as adjusted (as defined below) at March 31, 2003 of .30 and 1.05, respectively. First quarter 2003 earnings before interest, taxes, depreciation and amortization ("EBITDA, as adjusted") increased to $74.0 million, contributing to a ratio of EBITDA, as adjusted-to- interest incurred for the twelve months ended March 31, 2003 of 13.9. The Company's strong operating results over the past year, partially offset by expenditures of $56.1 million for the repurchase of 1,516,100 shares of MDC common stock, have increased MDC's stockholders' equity by 18% to $816 million, or $31.50 per outstanding share, at March 31, 2003. Further, notwithstanding higher inventory levels needed to support the Company's expanded homebuilding operations, MDC ended the 2003 first quarter with liquidity (as defined below) of $556 million, 28% higher than at March 31, 2002.

MDC, whose subsidiaries build homes under the name "Richmond American Homes," is one of the largest homebuilders in the United States. The Company also provides mortgage financing, primarily for MDC's homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC is a major regional homebuilder with a significant presence in some of the country's best housing markets. The Company is the largest homebuilder in Colorado; among the top five homebuilders in Northern Virginia, Phoenix, Tucson and Las Vegas; among the top ten homebuilders in suburban Maryland, Northern California, Southern California and Salt Lake City; and has recently entered the Dallas/Fort Worth market.

  All earnings per share amounts discussed above are on a diluted basis.

  Forward-Looking Statements

Certain statements in this release 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) availability and cost of insurance covering risks associated with our business; (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.

Sarbanes-Oxley Disclosures

Liquidity represents funds immediately available to MDC and is calculated as the maximum amount available under the Company's lines of credit, plus unrestricted cash, less outstanding letters of credit and borrowings. EBITDA, as adjusted and liquidity are not generally accepted accounting principle ("GAAP") measures. EBITDA, as adjusted has been computed in accordance with the definition of "Consolidated EBITDA" set forth under the Company's 8 3/8% senior notes indenture. Under this definition, EBITDA, as adjusted is calculated by adding to net income the provision for income tax, depreciation, amortization, interest charges, other fixed charges and other non-cash, extraordinary charges that reduce net income, including asset impairment charges. EBITDA, as adjusted should not be considered an alternative to net income determined in accordance with GAAP as an indicator of operating performance, nor an alternative to cash flows from operating activities determined in accordance with GAAP as a measure of liquidity. Because some analysts and companies may not calculate EBITDA, as adjusted in the same manner as MDC, the EBITDA, as adjusted information presented above may not be comparable to similar presentations by others. MDC's management believes that EBITDA, as adjusted reflects the changes in the Company's operating results, particularly changes in the Company's net income, and is an indication of MDC's ability to generate funds from operations that are available to pay income taxes, interest and principal on debt and to meet other cash obligations. Consolidated EBITDA is a component of the "Consolidated Fixed Charge Coverage Ratio," as defined in the Company's 8 3/8% senior notes indenture. The Consolidated Fixed Charge Coverage Ratio must be at least 2.0 according to the 8 3/8% senior notes indenture or the Company may not be able to incur additional indebtedness under certain circumstances. The Consolidated Fixed Charge Coverage Ratio is calculated as Consolidated EBITDA divided by "Consolidated Interest Incurred," as defined by the Company's 8 3/8% senior notes indenture. A reconciliation of EBITDA, as adjusted to net income, the most directly comparable GAAP measure, is provided below.

                            M.D.C. HOLDINGS, INC.
                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                                 March 31,   December 31,
                                                    2003         2002

      Cash and cash equivalents                    $51,832     $23,164
      Property and equipment, net                   10,683      10,851
      Deferred income taxes                         24,986      25,980
      Deferred debt issue costs, net                 3,210       3,305
      Other assets, net                              6,386       6,708
                                                    97,097      70,008

      Cash and cash equivalents                      4,690       4,686
      Home sales and other accounts receivable      23,592       3,519
      Inventories, net
        Housing completed or
         under construction                        634,677     578,475
        Land and land under development            643,698     656,843
      Prepaid expenses and other assets, net        70,182      65,936
                                                 1,376,839   1,309,459

  Financial Services
    Cash and cash equivalents                        1,551       1,092
    Mortgage loans held in inventory               133,891     207,938
    Other assets, net                                7,861       6,683
                                                   143,303     215,713

  Total Assets                                  $1,617,239  $1,595,180


      Accounts payable and accrued expenses        $48,235     $63,871
      Income taxes payable                          26,031      21,571
      Senior notes, net                            323,035     322,990
                                                   397,301     408,432
      Accounts payable and accrued expenses        204,650     210,601
      Line of credit                                90,000          --
                                                   294,650     210,601

    Financial Services
      Accounts payable and accrued expenses         20,541      21,506
      Line of credit                                88,552     154,074
                                                   109,093     175,580

      Total Liabilities                            801,044     794,613


      Total Stockholders' Equity                   816,195     800,567

      Total Liabilities and
       Stockholders' Equity                     $1,617,239  $1,595,180

                            M.D.C. HOLDINGS, INC.
                 Condensed Consolidated Statements of Income
                   (In thousands, except per share amounts)

                                                    Three Months Ended
                                                        March 31,
                                                    2003           2002

    Homebuilding                                  $554,912       $446,761
    Financial Services                              14,513          9,381
    Corporate                                          217            232

      Total Revenues                              $569,642       $456,374


    Homebuilding                                   $64,458        $57,844
    Financial Services                               7,567          5,030

      Operating Profit                              72,025         62,874

    Corporate general and
     administrative expense, net                   (11,259)        (9,828)

  Income before income taxes                        60,766         53,046
  Provision for income taxes                       (23,729)       (20,710)

      Net Income                                   $37,037        $32,336

      Basic                                          $1.41          $1.21
      Diluted                                        $1.36          $1.16

      Basic                                         26,359         26,714
      Diluted                                       27,212         27,773

  DIVIDENDS PAID PER SHARE                            $.08           $.07

                            M.D.C. HOLDINGS, INC.
                       Information on Business Segments
                                (In thousands)

                                                        Three Months
                                                       Ended March 31,
                                                    2003           2002
    Home sales                                    $553,575       $445,167
    Land sales                                         123             --
    Other revenues                                   1,214          1,594
      Total Homebuilding Revenues                  554,912        446,761

    Home cost of sales                             427,602        341,061
    Land cost of sales                                  87             --
    Marketing                                       33,600         25,663
    General and administrative                      29,165         22,193
                                                   490,454        388,917
      Homebuilding Operating Profit                 64,458         57,844

  Financial Services
    Interest revenues                                1,008          1,008
    Origination fees                                 4,660          4,229
    Gains on sales of mortgage servicing               834            471
    Gains on sales of mortgage loans, net            7,342          3,461
    Mortgage servicing and other                       669            212
      Total Financial Services Revenues             14,513          9,381

    General and administrative                       6,946          4,351
      Financial Services Operating Profit            7,567          5,030

  Total Operating Profit                            72,025         62,874

    Interest and other revenues                        217            232
    General and administrative                     (11,476)       (10,060)
      Net Corporate Expenses                       (11,259)        (9,828)

  Income Before Income Taxes                       $60,766        $53,046

                            M.D.C. HOLDINGS, INC.
                           Selected Financial Data
               (Dollars in thousands, except per share amounts)

                                   March 31,   December 31,    March 31,
                                     2003          2002          2002


    Stockholders' Equity
     Per Share Outstanding           $31.50         $30.29       $25.81

    Stockholders' Equity           $816,195       $800,567     $693,528
    Homebuilding and
     Corporate Debt                 413,035        322,990      224,519
    Total Capital
    (excluding mortgage
     lending debt)               $1,229,230     $1,123,557     $918,047

    Ratio of Homebuilding
     and Corporate Debt
     to Equity                          .51            .40          .32
    Ratio of Homebuilding
     and Corporate Debt
     to Equity (net of cash)            .43            .37          .28
    Ratio of Homebuilding
     and Corporate Debt
     to Total Capital                   .34            .29          .24
    Ratio of Homebuilding
     and Corporate Debt
     to Total Capital
     (net of cash)                      .30            .27          .22
    Ratio of Homebuilding
     and Corporate Debt
     to EBITDA, as adjusted            1.23            .99          .70
    Ratio of Homebuilding
     and Corporate Debt
     (net of cash) to
      EBITDA, as adjusted              1.05            .90          .61
    Total Liquidity                $556,098       $618,774     $433,655
    Total Homebuilding
     Inventories                 $1,278,375     $1,235,318     $982,390
    Interest Capitalized
     in Inventories                 $20,032        $17,783      $16,937
    Interest Capitalized
     as a Percent of
     Inventories                       1.6%           1.4%         1.7%
    Total Lots Owned                 16,054         16,962       14,354
    Total Lots Under Option           6,813          6,995        5,559
    Homes Under Construction
     (including models)               4,356          3,751        3,248
    Active Subdivisions                 204            178          150

                                       Three Months Ended
                                           March 31,
                                       2003         2002

    Reconciliation of Net Income
     to EBITDA, as adjusted
    Net Income                        $37,037      $32,336
        Income taxes                   23,729       20,710
        Interest included in home
         and land cost of sales         4,803        4,462
        Other fixed charges             1,449          963
        Depreciation and
         amortization                   7,028        5,249
  Total EBITDA, as adjusted           $74,046      $63,720

  Ratio of EBITDA, as adjusted to
   Homebuilding and Corporate
   Interest Incurred                     10.5         15.8
  Homebuilding and Corporate SG&A
   as a Percent of Home Sales
   Revenues                             13.4%        13.0%
  Homebuilding and Corporate
   Interest Incurred                   $7,052       $4,041
  Interest Capitalized                 $7,052       $4,041
  Interest in Home Cost of Sales
   as a Percent of Home Sales
   Revenues                              0.9%         1.0%

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

                                        Three Months Ended
                                            March 31,
                                        2003         2002

  Home Sales Revenues                $553,575      $445,167

  Average Selling Price
   Per Home Closed                     $263.6        $265.9

  Home Gross Margins                    22.8%         23.4%
      Excluding Interest in
       Home Cost of Sales               23.7%         24.4%

  Orders For Homes, net (Units)
      Colorado                            671         1,001
      California                          530           591
      Nevada                              583           207
      Arizona                             924           670
      Utah                                 93            --
      Texas                                50            --
      Virginia                            403           242
      Maryland                            111            65

          Total                         3,365         2,776

  Homes Closed (Units)
      Colorado                            609           609
      California                          428           292
      Nevada                              273           141
      Arizona                             571           438
      Utah                                 40            --
      Texas                                10            --
      Virginia                            102           130
      Maryland                             67            64

          Total                         2,100         1,674

                                      March 31,   December 31,  March 31,
                                        2003          2002         2002

  Backlog (Units)
      Colorado                          1,019           957       1,587
      California                        1,024           922         789
      Nevada                              660           350         247
      Arizona                           1,429         1,076         857
      Utah                                103            50          --
      Texas                                56            16          --
      Virginia                            777           476         346
      Maryland                            232           188         158

      Total                             5,300         4,035       3,984

  Backlog Estimated
   Sales Value                     $1,400,000    $1,120,000  $1,050,000

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 Robert Solomon of Rubenstein
Associates, Inc., +1-212-843-8050,, for M.D.C.
Holdings, Inc.