M.D.C. Holdings Reports Record Second Quarter Home Orders, Home Closings and Quarter-End Backlog
* Quarterly orders for 4,232 homes, a 16% year-over-year increase
* Closed 3,085 homes, 18% above last year
* Backlog of 8,259 homes, up 30%, with an estimated sales value of $2.5 billion

M.D.C. Holdings, Inc. today announced the highest level of home orders for any second quarter and first six months in the Company's history. The Company received orders, net of cancellations, for 4,232 homes and 8,661 homes, respectively, during the second quarter and first half of 2004, compared with net orders for 3,665 homes and 7,030 homes during the same periods in 2003.

Larry A. Mizel, MDC's chairman and chief executive officer, stated, "Given the strong home orders in the first quarter and early in the second quarter, we intentionally slowed the pace of new orders in certain communities over the last several weeks in some of our fastest growing markets, including Southern California and Nevada. Similar to our actions in Virginia and Maryland in the first quarter, which continued throughout the second quarter, we increased sales prices and limited the release of new homes for sale to allow construction to catch up with the growing backlog of homes sold but not started in these markets. Notwithstanding these self-imposed restraints, year-over-year increases in mortgage interest rates, and difficult comparisons created by the exceptional level of home orders recorded in the 2003 second quarter, our home orders reached record levels for the tenth consecutive quarter."

Second quarter 2004 home orders increased from 2003 levels in most of the Company's markets, led by gains of 54% in Northern California and 26% in Arizona. In addition, the Company received 527 net home orders in the 2004 second quarter from its newest markets in Texas, Utah, Florida and Illinois, compared with only 162 home orders from Texas and Utah in the 2003 second quarter. Home orders were down in Colorado from the strong level of orders received in the 2003 second quarter, primarily due to a reduced number of active subdivisions, combined with relatively more of the active subdivisions in this market nearing close-out during the 2004 period. Virginia and Maryland also reported lower home orders primarily due to the reasons previously discussed.

MDC closed 3,085 homes and 5,995 homes, respectively, in the quarter and six months ended June 30, 2004. These record home closing levels represent increases of 18% and 27% from the 2,624 and 4,724 homes closed, respectively, for the same periods in 2003. The Company ended the second quarter of 2004 with its highest ever quarter-end backlog of 8,259 homes with an estimated sales value of $2.5 billion, 30% and 53% greater, respectively, than the backlog of 6,341 homes with an estimated sales value of $1.63 billion at June 30, 2003.

MDC plans to release its 2004 second quarter earnings after the market closes on Monday, July 12, 2004. A synchronized slide show and audio presentation will be broadcast over the Internet on Tuesday, July 13, 2004, at 10:00 a.m. Eastern Daylight Saving Time in conjunction with its conference call. The presentation can be accessed by entering MDC's website,, clicking on "Investors" and selecting "M.D.C. Holdings 2004 Second Quarter Conference Call."

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, suburban Maryland, Phoenix, Tucson, Las Vegas and Salt Lake City; and among the top ten homebuilders in Northern California and Southern California. MDC also has a growing presence in Dallas/Fort Worth, Houston and Jacksonville, and has recently entered the Philadelphia/Delaware Valley, West Florida and Chicago markets. For more information about our Company, please visit

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.

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

                                  Three Months             Six Months
                                 Ended June 30,          Ended June 30,
                                2004         2003        2004        2003

   Orders For Homes,
    net (units)
     Colorado                    599         812        1,290       1,483
     California                  627         511        1,453       1,041
     Nevada                      927         774        1,957       1,357
     Arizona                   1,243         986        2,153       1,910
     Utah                        210          93          386         186
     Texas                       224          69          495         119
     Virginia                    230         305          522         708
     Maryland                     79         115          203         226
     Florida                      90          --          199          --
     Illinois                      3          --            3          --
       Total                   4,232       3,665        8,661       7,030

   Cancellation Rate            23.2%       23.5%        20.9%       22.8%

   Homes Closed (units)
     Colorado                    542         625        1,020       1,234
     California                  535         487        1,011         915
     Nevada                      629         508        1,197         781
     Arizona                     665         663        1,535       1,234
     Utah                        124          69          228         109
     Texas                       148          29          218          39
     Virginia                    267         166          470         268
     Maryland                     91          77          161         144
     Florida                      84          --          155          --
     Illinois                     --          --           --          --
       Total                   3,085       2,624        5,995       4,724

                             June 30,    June 30,
                               2004        2003
   Backlog (units)
     Colorado                  1,004       1,206
     California                1,561       1,048
     Nevada                    1,646         926
     Arizona                   1,951       1,752
     Utah                        309         127
     Texas                       420          96
     Virginia                    906         916
     Maryland                    311         270
     Florida                     148          --
     Illinois                      3          --
       Total                   8,259       6,341

   Backlog Estimated
    Sales Value           $2,500,000  $1,630,000
   Estimated Average
    Selling Price of
    Homes in Backlog          $302.7      $257.1
   Active Subdivisions
    at Beginning of
    Month                        222         194

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

CONTACT: Paris G. Reece III, Chief Financial Officer, +1-303-804-7706,, or Rachel L. Neumann, Communications Director,
+1-303-804-7729,, both of M.D.C. Holdings, Inc.