M.D.C. Holdings Announces Offering of $150 Million 5 1/2% Senior Notes And Notice of Redemption of $175 Million 8 3/8% Senior Notes

M.D.C. Holdings, Inc. ( today announced that it plans to issue $150 million principal amount of 5 1/2% Senior Notes due 2013 (the "2013 Notes"). The 2013 Notes will be general unsecured obligations of M.D.C. Holdings, Inc., and will rank equally and ratably with its other general unsecured indebtedness. In addition, the 2013 Notes will be guaranteed on an unsecured basis, jointly and severally, by most of the Company's homebuilding subsidiaries. The Company will use the proceeds of the offering to repay certain outstanding indebtedness under its homebuilding line of credit and for general corporate purposes.

The 2013 Notes will be issued pursuant to an effective shelf registration statement and are being offered by means of the Prospectus included in the registration statement and the related Prospectus Supplement. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the 2013 Notes, nor shall there be any sale of these notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

The Company also announced that it will redeem all of its outstanding 8 3/8% Senior Notes due 2008 (the "2008 Notes") on May 28, 2003. The 2008 Notes are redeemable by the Company at 104.188% of their principal amount, or approximately $182.3 million, plus accrued and unpaid interest through the date of redemption. The redemption will be funded using cash on hand and funds available under the Company's homebuilding line of credit. Holders of the 2008 Notes will receive by mail a Notice of Redemption setting forth the redemption procedures.

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 and Houston, Texas markets.

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) the availability and cost of performance bonds and 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.

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

CONTACT: Paris G. Reece III, Chief Financial Officer of M.D.C. Holdings,
+1-303-804-7706,; or Robert Solomon of Rubenstein Associates,
Inc., +1-212-843-8050,, for M.D.C. Holdings