K. Hovnanian Enterprises, Inc. Announces New Senior Secured Notes Offering

RED BANK, N.J., Oct. 5 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc.
(NYSE: HOV) (the "Company") announced today that its wholly owned subsidiary,
K. Hovnanian Enterprises, Inc. ("K. Hovnanian"), plans to issue an aggregate
principal amount of up to $775 million of senior secured notes due 2016 (the
"Notes") in a private placement. In conjunction with the closing of the Notes
offering, K. Hovnanian expects to consummate its previously announced tender
offers and consent solicitations (the "Tender Offers") for its outstanding
senior secured notes and certain series of senior unsecured notes and
terminate its existing revolving credit facility and enter into certain letter
of credit agreements.

The Notes and the guarantees thereof by the Company and certain of its
subsidiaries will be secured on a first-priority lien basis on substantially
all the assets owned by K. Hovnanian and the guarantors, subject to permitted
liens and certain exceptions.

K. Hovnanian intends to use the net proceeds from the offering of the Notes
together with cash on hand to fund the Tender Offers commenced pursuant to the
Offer to Purchase and Consent Solicitation Statement dated September 21, 2009,
as amended, and to pay related fees and expenses. Any excess proceeds will be
used for additional debt repurchases from time to time and/or for general
corporate purposes.

The Notes have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"). The Notes may not be offered or sold within
the United States or to U.S. persons, except to "qualified institutional
buyers" in reliance on the exemption from registration provided by Rule 144A
and to certain persons in offshore transactions in reliance on Regulation S.
You are hereby notified that sellers of the Notes may be relying on the
exemption from the provisions of Section 5 of the Securities Act provided by
Rule 144A. This announcement does not constitute an offer to sell or the
solicitation of an offer to buy Notes in any jurisdiction in which such an
offer or sale would be unlawful.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is
headquartered in Red Bank, New Jersey. The Company is one of the nation's
largest homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New
York, 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®, Matzel & Mumford, Brighton Homes, Parkwood Builders,
Town & Country Homes, Oster Homes, First Home Builders of Florida and
CraftBuilt 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.

Forward-Looking Statements

All statements in this press release that are not historical facts should be
considered as "forward-looking statements". Such statements involve known and
unknown risks, uncertainties and other factors that may cause 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 risks, uncertainties and other factors
include, but are not limited to, (1) changes in general and local economic and
industry and business conditions, (2) adverse weather conditions and natural
disasters, (3) changes in market conditions and seasonality of the Company's
business, (4) changes in home prices and sales activity in the markets where
the Company builds homes, (5) government regulation, including regulations
concerning development of land, the home building, sales and customer
financing processes, and the environment, (6) fluctuations in interest rates
and the availability of mortgage financing, (7) shortages in, and price
fluctuations of, raw materials and labor, (8) the availability and cost of
suitable land and improved lots, (9) levels of competition, (10) availability
of financing to the Company in order to satisfy the financing condition for
the Tender Offers, (11) utility shortages and outages or rate fluctuations,
(12) levels of indebtedness and restrictions on the Company's operations and
activities imposed by the agreements governing the Company's outstanding
indebtedness, (13) operations through joint ventures with third parties, (14)
product liability litigation and warranty claims, (15) successful
identification and integration of acquisitions, (16) significant influence of
the Company's controlling stockholders, (17) geopolitical risks, terrorist
acts and other acts of war and (18) other factors described in detail in the
Company's Annual Report on Form 10-K for the year ended October 31, 2008 and
Quarterly Reports on Form 10-Q for the quarters ended January 31, 2009, April
30, 2009 and July 31, 2009. Except as otherwise required by applicable
securities laws, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, changed circumstances or any other reason.

SOURCE Hovnanian Enterprises, Inc.

J. Larry Sorsby, Executive Vice President & CFO, +1-732-747-7800, or Jeffrey
T. O'Keefe, Director of Investor Relations, +1-732-747-7800, both of Hovnanian
Enterprises, Inc.