NEW YORK (Standard & Poor's) Sept. 6, 2006--Standard & Poor's Ratings Services said today that its ratings and outlook on KB Home (BB+/Stable/--) are currently unaffected by the announcement that the SEC will be conducting an informal inquiry into the company's stock option grants. Members of the audit and compliance committee of KB Home's board of directors, along with independent outside legal counsel, are currently conducting an internal investigation into the company's option granting practices, specifically the timing of past grants. Three shareholder lawsuits have been filed against the company and certain members of the board that allege breach of fiduciary duty in connection with the company's granting of stock options. Standard & Poor's will continue to closely monitor any
