This distinction is a reflection of our continued achievements, which, this year, include $9.44 billion in revenue, $842.4 million in income, the delivery of 37,140 homes and a $6.77 billion in backlog.

Nationally, it is clear that some housing markets have moderated from the over-heated and, in some cases, speculative pace of growth of the past few years. In our view, this tempering of demand to more sustainable long-term levels is a healthy trend for our company and the industry. There are signs of cooling in the hottest markets on both coasts and a shift in investor activity from buying to selling, resulting in less demand and increased supply in certain markets. Once these factors work their way through current housing supplies, however, we expect the market to move to a new equilibrium which will provide a platform for continuing and sustainable growth by KB Home. With this outlook and our healthy first-quarter performance, we feel confident in maintaining our earnings estimate of $11.25 per diluted share for 2006.

There are signs of cooling in the hottest markets on both coasts and a shift in investor activity from buying to selling, resulting in less demand and increased supply in certain markets. Once these factors work their way through current housing supplies, however, we expect the market to move to a new equilibrium which will provide a platform for continuing and sustainable growth by KB Home.

If you were to go out and design and build them yourself, it would cost you many times that.

It is not Martha Stewart's home. It is a home inspired by one of Martha's homes. At the same time, we didn't just grab her and throw her name on some houses that we built.

It is not Martha Stewart's home, ... It is a home inspired by one of Martha's homes. At the same time, we didn't just grab her and throw her name on some houses that we built.