News

M.D.C. Holdings Reports Record Second Quarter Home Orders, Home Closings and Quarter-End Backlog
- Record quarterly orders for 4,832 homes, a 14% year-over-year increase
- Closed 3,512 homes, a second quarter record and 14% above last year
- Highest ever quarter-end backlog of 9,213 homes, up 12% from June 30, 2004
- Second quarter earnings to be released after market close on July 13, 2005
PRNewswire-FirstCall
DENVER

M.D.C. Holdings, Inc. today announced the highest level of home orders for any quarter and first six months in the Company's history. The Company received orders, net of cancellations, for 4,832 homes and 9,378 homes, respectively, during the second quarter and first half of 2005, compared with net orders for 4,232 homes and 8,661 homes during the same periods in 2004. These record order levels were capped by a 44% year-over-year increase in June home orders.

Second quarter 2005 home orders increased from 2004 levels in most of the Company's markets, led by Maryland, Nevada and California, largely due to year-over-year increases in active subdivisions. In addition, the Company received 447 net home orders in the 2005 second quarter from its new markets in Florida, Philadelphia/Delaware Valley and Illinois, compared with 93 home orders from Florida and Illinois in the 2004 second quarter. These increases partially were offset by a decline in home orders in Arizona from the exceptional levels experienced during the second quarter of 2004. The demand for new homes in both Phoenix and Tucson continued to be very strong throughout the 2005 second quarter. However, during the quarter, the Company limited temporarily its release of new homes for sale in certain subdivisions in these markets in an effort to reduce the growing backlog of homes sold but not started in Arizona that resulted from a combination of high levels of home orders in prior quarters and weather-related land development delays.

Record Home Closings and Backlog

MDC closed 3,512 homes and 6,670 homes, respectively, in the quarter and six months ended June 30, 2005. These record home closing levels represent increases of 14% and 11% from the 3,085 and 5,995 homes closed, respectively, for the same periods in 2004. The Company ended the second quarter of 2005 with its highest ever quarter-end backlog of 9,213 homes, 12% greater than the backlog of 8,259 homes at June 30, 2004.

Earnings Release, Conference Call and Webcast

The Company plans to release its 2005 second quarter earnings after the market closes on Wednesday, July 13, 2005. A synchronized slide show and audio presentation will be broadcast over the Internet on Thursday, July 14, 2005, 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, www.richmondamerican.com, clicking on "Investors" and selecting "M.D.C. Holdings 2005 Second Quarter Conference Call." Minimum requirements to listen to broadcast are as follows: Windows Media Player software, downloadable free from http://www.microsoft.com/windows/windowsmedia/mp10/default.aspx, and at least a 28.8Kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to llee@mdch.com.

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, Jacksonville, Phoenix, Tucson, Las Vegas and Salt Lake City; and among the top ten homebuilders in 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.

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

                                     Three Months          Six Months
                                     Ended June 30,       Ended June 30,
                                   2005        2004      2005      2004

   Orders For Homes, net (units)
     Arizona                      1,090       1,243     2,242     2,153
     California                     702         627     1,233     1,453
     Colorado                       594         599     1,258     1,290
     Florida                        359          90       679       199
     Illinois                        31           3        60         3
     Maryland                       131          79       276       203
     Nevada                       1,209         927     1,959     1,957
     Philadelphia/
      Delaware Valley                57          --       100        --
     Texas                          189         224       510       495
     Utah                           236         210       484       386
     Virginia                       234         230       577       522
       Total                      4,832       4,232     9,378     8,661

   Cancellation Rate              19.3%       23.2%

   Homes Closed (units)
     Arizona                        859         665     1,655     1,535
     California                     377         535       763     1,011
     Colorado                       568         542     1,016     1,020
     Florida                        285          84       580       155
     Illinois                        16          --        21        --
     Maryland                        80          91       154       161
     Nevada                         626         629     1,235     1,197
     Philadelphia/
      Delaware Valley                 1          --         1        --
     Texas                          237         148       402       218
     Utah                           233         124       401       228
     Virginia                       230         267       442       470
       Total                      3,512       3,085     6,670     5,995


   Backlog (units)              June 30,     June 30,
                                  2005          2004

     Arizona                      2,730       1,951
     California                   1,277       1,561
     Colorado                       934       1,004
     Florida                        737         148
     Illinois                        57           3
     Maryland                       347         311
     Nevada                       1,470       1,646
     Philadelphia/
      Delaware Valley               122          --
     Texas                          364         420
     Utah                           372         309
     Virginia                       803         906
       Total                      9,213       8,259

   Active Subdivisions at
     Beginning of Month             280         222

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

CONTACT: Paris G. Reece III, Chief Financial Officer, +1-303-804-7706,
greece@mdch.com, or Robert N. Martin, Investor Relations, +1-720-977-3431,
bnmartin@mdch.com, for M.D.C. Holdings, Inc.