Ohio Homebuyers Respond Enthusiastically to K. Hovnanian's Deal of the Century.

CANTON, Ohio -- Ohio residents were among about 460 people who made deals this past weekend at new-home communities offered by K. Hovnanian Homes and Oster Homes in Ohio and other Midwestern states.

The three-day sale was part of the company's first national sales event. Called the

"The preliminary results exceeded our expectations," said Ara K. Hovnanian, president and chief executive officer of Hovnanian Enterprises, parent company to K. Hovnanian Homes. "The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today."

The company reports its financial matters in geographic segments. Ohio is in the Midwestern segment, which includes Illinois, Kentucky, Michigan, Minnesota and Ohio. In those states, the company recorded about 460 gross sales. Gross sales include contracts and deposits. For its fiscal quarter ending July 31, the company had 268 contracts for Illinois, Kentucky, Michigan, Minnesota and Ohio.

"We have been seeing traffic and sales increasing in many of our communities over the past few weeks, telling us that people are ready to buy homes again," said Bruce Grosse, division president of K. Hovnanian Homes in Ohio. "We believe people are getting more realistic about the price of homes, and that's resulting in increasing sales."

Customers packed K. Hovnanian's sales centers across Ohio over the weekend. Incentives varied in each community, but included combinations of price reductions, premium waivers and free upgrades. Although those wishing to buy homes have been reluctant to enter the market, the Deal of the Century brought them out in droves.

"Confidence is returning," said Evelyn Oster, co-division president of Oster Homes, a division of Hovnanian Enterprises, in Cleveland. "People have stayed out of the market for almost two years, and that has built up demand. They see that the economy continues to be good, interest rates are staying low, there are many homes to choose from and the deals have never been better. Savvy homebuyers also understand that prices have pretty much stabilized and that there are still good, conventional mortgages available. During our Deal of the Century event, we gave home buyers the best reason to purchase a new home: unbeatable quality at a once-in-a-lifetime price."

Home prices have returned to pre-sale levels in K. Hovnanian communities around the state, although buyers can still find value, said Grosse.

"Homebuyers want beautiful, practical floor plans, but they also want a quality home," Grosse said. "We're able to show them that we've been in business since 1959 and that nine out of 10 of our customers would recommend us to their friends and families. Coupled with the features and choices we're including and the good deals we're offering, we expect people to continue to buy homes."

K. Hovnanian Homes is the sixth largest homebuilder in the nation. The company delivered 1,984 homes in Illinois, Kentucky, Michigan, Minnesota and Ohio during its 2006 fiscal year.

The parent company, Hovnanian Enterprises, Inc., was founded by Kevork Hovnanian in 1959 and is headquartered in Red Bank, N.J. It sold 20,201 homes nationally during Fiscal 2006, generating $6.1 billion in total revenues. The company builds planned communities that include single-family, townhomes, garden homes as well as mid-rise, high-rise and mixed-use buildings. The company also is known for its active-adult homes and its expertise in community redevelopment and environment rehabilitation. More information is available at www.khov.com . Information about K. Hovnanian Homes is available at 888-KHOV-444. Information about Oster Homes also is available at (440) 985-7440.