RED BANK, N.J., Aug 4, 2004 /PRNewswire-FirstCall via COMTEX/ -- Hovnanian Enterprises, Inc. (HOV), a leading national homebuilder, announced today preliminary net contracts and sales backlog for the third quarter and month ended July 31, 2004. For the month of July 2004, the dollar value of net contracts increased 51% and the number of net contracts increased 34%, to 1,404 homes, when compared with July 2003. For the quarter, the dollar value of net contracts increased 34% and the number of net contracts increased 19%, to 4,173 homes, when compared with the third quarter of fiscal 2003. The sales value of contract backlog at July 31, 2004 grew 68% over July 31, 2003, to $2.7 billion, and the number of homes in contract backlog increased 48%, to 8,501 homes, when compared to 5,741 homes at July 31, 2003. The Company delivered 3,765 homes during the third quarter, including 27 in unconsolidated joint ventures, an increase of 22% over the 3,075 homes delivered during the same period in 2003, which included 9 home deliveries in unconsolidated joint ventures. The number of active selling communities company-wide on July 31, 2004, excluding unconsolidated joint ventures, increased to 285 communities from 245 communities at the end of July 2003.

    HOVNANIAN ENTERPRISES, INC.
    (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)

                                                       Net Contracts
                                                     Three Months Ended
                                                         July 31st
                                                2004         2003     % Change
    Northeast
                       Homes                        855         889     (3.8%)
                       Dollars                  267,692     261,624      2.3%
                       Avg. Price               313,090     294,290      6.4%
    Southeast(1)
                       Homes                        989         865     14.3%
                       Dollars                  293,707     239,817     22.5%
                       Avg. Price               296,974     277,245      7.1%
    Southwest(1)
                       Homes                        998         637     56.7%
                       Dollars                  179,232     125,292     43.1%
                       Avg. Price               179,591     196,691     (8.7%)
    West
                       Homes                      1,260       1,093     15.3%
                       Dollars                  507,212     336,890     50.6%
                       Avg. Price               402,549     308,225     30.6%
    Consolidated Total
                       Homes                      4,102       3,484     17.7%
                       Dollars                1,247,843     963,623     29.5%
                       Avg. Price               304,203     276,585     10.0%
    Unconsolidated Joint Ventures
                       Homes                         71          14       N/A
                       Dollars                   43,388       3,160       N/A
                       Avg. Price               611,102     225,749       N/A
    Total
                       Homes                      4,173       3,498     19.3%
                       Dollars                1,291,231     966,783     33.6%
                       Avg. Price               309,425     276,382     12.0%


    HOVNANIAN ENTERPRISES, INC.
    (DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)


                                                     Contract Backlog
                                                         July 31st
                                               2004         2003      % Change
    Northeast
                       Homes                     2,522        2,266     11.3%
                       Dollars                 768,066      613,884     25.1%
                       Avg. Price              304,546      270,911     12.4%
    Southeast(1)
                       Homes                     2,558        1,707     49.9%
                       Dollars                 772,073      497,907     55.1%
                       Avg. Price              301,827      291,685      3.5%
    Southwest(1)
                       Homes                     1,207          642     88.0%
                       Dollars                 206,540      127,636     61.8%
                       Avg. Price              171,119      198,810    (13.9%)
    West
                       Homes                     1,933        1,103     75.2%
                       Dollars                 777,598      359,821    116.1%
                       Avg. Price              402,275      326,220     23.3%
    Consolidated Total
                       Homes                     8,220        5,718     43.8%
                       Dollars               2,524,277    1,599,248     57.8%
                       Avg. Price              307,090      279,687      9.8%
    Unconsolidated Joint Ventures
                       Homes                       281           23       N/A
                       Dollars                 172,130        4,975       N/A
                       Avg. Price              612,563      216,296       N/A
    Total
                       Homes                     8,501        5,741     48.1%
                       Dollars               2,696,407    1,604,223     68.1%
                       Avg. Price              317,187      279,433     13.5%



                              July      % Change        July       % Change
                              2004        From          2004         From
                          Net Contracts July 2003   Net Contracts  July 2003
                                                    ($ in millions)

    Northeast                  337        33.2%       $109.0        36.8%
    (NJ, NY, PA, OH, MI)
    Southeast(1)               319        12.7%         95.8        22.7%
    (FL, MD, NC, SC, VA, WV)
    Southwest(1)               301        67.2%         55.0        62.3%
    (AZ, TX)
    West                       426        30.3%        173.2        65.8%
    (CA)
    Consolidated Total:      1,383        32.6%       $433.0        46.2%

    Unconsolidated Joint
     Ventures                   21          N/A         13.4          N/A

       Total:                1,404        34.2%       $446.4        50.5%

    (1) The number of net contracts and backlog in the Southwest for the month
        and quarter ended July 31, 2004 includes the effect of the Great
        Western Homes' acquisition, which closed in August 2003. The number
        of net contracts and backlog in the Southeast for the month and
        quarter ended July 31, 2004 includes the effect of the Windward Homes
        acquisition, which closed in November 2003.

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation's largest homebuilders with operations in Arizona, California, Florida, Maryland, New Jersey, New York, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Great Western Homes and Windward Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2003 annual report, can be accessed through the investor relations page of the Hovnanian Web site at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

SOURCE Hovnanian Enterprises, Inc.

Kevin Hake, Vice President, Finance & Treasurer,
+1-732-747-7800, or Brian Cheripka, Assistant Director of Investor Relations,
+1-732-747-7800, both of Hovnanian Enterprises

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