News

M.D.C. Holdings, Inc. today announced that it received 2,736 home orders in January and February 2005, compared with the 2,685 home orders received for the same period in 2004. This represents the best start for a first quarter in the Company's history, despite the difficult comparison created by the 32% year-over-year increase in home orders achieved in the 2004 first quarter, and despite the wet weather conditions experienced in key western markets this year. Although MDC's current practice is to report home orders on a quarterly basis, this information is being provided to comply with Regulation FD in anticipation of communications with the investment community this week. Detailed information on 2005 first quarter home orders will be provided in April.

Home orders in Arizona particularly were strong due to consistently high demand for new homes in this market. The Company also received significantly more home orders in January and February 2005 from its newest markets in Texas, Utah, Florida, Philadelphia/Delaware Valley and Chicago than in the same period in 2004. Similar to the 2004 fourth quarter, these increases partially were offset by lower home orders year-over-year in Nevada and California, compared with the extraordinary levels experienced in these markets during the first two months of 2004.

MDC also announced that earnings per share for the first quarter of 2005 should exceed considerably the record $1.38 earnings per share posted in the first quarter of 2004. However, construction and development delays resulting from adverse weather conditions have occurred in several of its markets, most notably Southern California, Nevada and Arizona. As a result, approximately 200 home closings originally scheduled for the first quarter of 2005 may be delayed to later periods. The Company believes that the impact of these delayed home closings may cause earnings per share for the first quarter of 2005 to be slightly below the low end of analyst estimates for the quarter of $1.80 per share, which represents a 30% increase from the same period in 2004. MDC anticipates that the affected divisions can recover from these weather-related challenges and recapture the delayed closings by the latter half of 2005. Therefore, although the total year results may be more back-end loaded than previously anticipated, MDC's expectations for record full year 2005 revenues and earnings remain essentially unchanged.

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 Jacksonville, Northern California and Southern California. MDC also has established operating divisions in Dallas/Fort Worth, Houston, West Florida, Philadelphia/Delaware Valley and Chicago. For more information about our Company, please visit www.richmondamerican.com.

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) 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. Additional information about the risks and uncertainties applicable to the Company's business is contained in the Company's Form 10-K for the year ended December 31, 2004, which was filed with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

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