<SEC-DOCUMENT>0000950123-11-090463.txt : 20111018
<SEC-HEADER>0000950123-11-090463.hdr.sgml : 20111018
<ACCEPTANCE-DATETIME>20111018154243
ACCESSION NUMBER:		0000950123-11-090463
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20111017
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20111018
DATE AS OF CHANGE:		20111018

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HOVNANIAN ENTERPRISES INC
		CENTRAL INDEX KEY:			0000357294
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				221851059
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08551
		FILM NUMBER:		111145725

	BUSINESS ADDRESS:	
		STREET 1:		110 WEST FRONT STREET
		STREET 2:		PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
		BUSINESS PHONE:		7327477800

	MAIL ADDRESS:	
		STREET 1:		110 WEST FRONT STREET PO BOX 500
		STREET 2:		110 WEST FRONT STREET  PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y93126e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><!-- xbrl,dc --><b>Date of Report (Date of earliest event reported): October&nbsp;17, 2011</B><!-- /xbrl,dc --></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>HOVNANIAN ENTERPRISES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-8551</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>22-1851059</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Jurisdiction
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>110 West Front Street<BR>
P.O. Box 500<BR>
Red Bank, New Jersey 07701</B></DIV>

<DIV align="center" style="font-size: 10pt">(Address of Principal Executive Offices) (Zip Code)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(732)&nbsp;747-7800</B><BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B><BR>
(Former Name or Former Address, if Changed Since<BR>
Last Report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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<!-- link1 "Item&nbsp;8.01. Other Events" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Item&nbsp;8.01.</TD>
    <TD>&nbsp;</TD>
    <TD><U>Other Events.</U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;17, 2011, Hovnanian Enterprises, Inc. (&#147;Hovnanian&#148;) issued a press release relating
to the previously announced private exchange offers and consent solicitation of K. Hovnanian
Enterprises, Inc., a wholly-owned subsidiary of Hovnanian. In the press release, Hovnanian
announced, among other things, an increase in the total consideration with respect to the exchange
offers for certain series of its senior notes, the extension of the Early Tender and Consent Time,
and, in the case of exchange offers for certain series of its senior notes, the Withdrawal and
Revocation Deadline, and has announced the amount of senior notes validly tendered and not validly
withdrawn, by series, as of 5:00 pm, New York City time, on October&nbsp;17, 2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange offers and consent solicitation are being made within the United States only to
&#147;qualified institutional buyers&#148; pursuant to Rule&nbsp;144A under the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;), and outside the United States to non-U.S. investors pursuant to Regulation
S. The new secured notes being offered have not been and will not be registered under the
Securities Act and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. The information contained in this report does
not constitute an offer to sell or the solicitation of an offer to buy senior notes or new secured
notes subject to the exchange offers in any jurisdiction in which such an offer or sale would be
unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the press release is attached hereto as Exhibit&nbsp;99.1 and is incorporated herein by
reference.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Item&nbsp;9.01.</TD>
    <TD>&nbsp;</TD>
    <TD><U>Financial Statements and Exhibits</U>.</TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d) <I>Exhibits.</I>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Exhibit&nbsp;99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release dated October&nbsp;17, 2011.</TD>
</TR>
</TABLE>
</DIV>




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<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SIGNATURES</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ J. Larry Sorsby
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">J. Larry Sorsby&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" nowrap>Executive Vice President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: October&nbsp;18, 2011
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "INDEX TO EXHIBITS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>INDEX TO EXHIBITS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Exhibit&nbsp;99.1
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Press Release dated October&nbsp;17, 2011.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y93126exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<TITLE>exv99w1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Exhibit&nbsp;99.1</I></B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">HOVNANIAN ENTERPRISES, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>News Release</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Contact:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. Larry Sorsby
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jeffrey T. O&#146;Keefe</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President &#038; CFO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Investor Relations</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">732-747-7800
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">732-747-7800</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Hovnanian Enterprises Announces Modifications to Previously Announced Private Debt Exchange
Offers for Certain of its Debt Securities </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">RED BANK, NJ, October&nbsp;17, 2011 &#151; Hovnanian Enterprises, Inc. (NYSE: HOV) (the &#147;Company&#148;) announced
today that in connection with its previously announced private exchange offers and consent
solicitation, K. Hovnanian Enterprises, Inc., a wholly-owned subsidiary of the Company (&#147;K.
Hovnanian&#148;), has increased the applicable Total Consideration with respect to the Exchange Offers
for its 6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior Notes due 2014 (the &#147;6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% 2014 Notes&#148;), its 6<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Notes due 2014 (the &#147;6<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>%
2014 Notes,&#148; and together with the 6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% 2014 Notes, the &#147;2014 Notes&#148;), its 11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Notes due
2015 (the &#147;11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% 2015 Notes&#148; or the &#147;Any and All Notes&#148;) and its 6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">4</FONT>% Senior Notes due 2015 (the &#147;6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">4</FONT>%
2015 Notes&#148; and together with the 11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% 2015 Notes, the &#147;2015 Notes&#148;), in the manner as described
below. The Company also announced that it has extended the Early Tender and Consent Time for all
Senior Notes from 5:00 p.m., New York City time, on October&nbsp;17, 2011 to 12:00 midnight, New York
City time, on October&nbsp;29, 2011. In addition, the Company announced that it has extended the
Withdrawal and Revocation Deadline for the 2014 Notes and the 2015 Notes from 5:00 p.m., New York
City time, on October&nbsp;12, 2011 to 12:00 midnight, New York City time, on October&nbsp;29, 2011. The
Withdrawal and Revocation Deadline for all other series of Senior Notes expired at 5:00 p.m., New
York City time, on October&nbsp;12, 2011. As a result of the extension of the Early Tender and Consent
Time and, in the case of the 2014 Notes and the 2015 Notes, the Withdrawal and Revocation Deadline,
holders of Senior Notes that properly tender and, in the case of the 2014 Notes and the 2015 Notes
do not validly withdraw, their Senior Notes prior to or on the extended Early Tender and Consent
Time, and whose Senior Notes are accepted for exchange will receive the applicable Total
Consideration. The Exchange Offers will expire at 12:00 midnight, New York City time, on October
29, 2011, unless extended or earlier terminated (the &#147;Expiration Time&#148;). Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to such terms in the
Confidential Offering Memorandum and Consent Solicitation Statement (the &#147;Offering Memorandum&#148;)
relating to the Exchange Offers and Consent Solicitation and the accompanying Consent and Letter of
Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In exchange for each $1,000 principal amount of 2014 Notes validly tendered (and not validly
withdrawn) on or prior to the extended Early Tender and Consent Time and accepted by K. Hovnanian,
participating holders of 2014 Notes will receive $1,000 principal amount of 5.00% Senior Secured
Notes due 2021 (the &#147;5.00% New Secured Notes&#148;) and a cash payment of $100 (the &#147;2014 Notes Cash
Consideration&#148;), plus accrued and unpaid interest in cash (the &#147;2014 Notes Total Consideration&#148;).
In exchange for each $1,000 principal amount of 2015 Notes validly tendered (and not validly
withdrawn) on or prior to the extended Early Tender and Consent Time and accepted by K. Hovnanian,
participating holders of 2015 Notes will receive $1,000 principal amount of 5.00% New Secured Notes
and a cash payment of $100 (the &#147;2015 Notes Cash Consideration&#148; and together with the 2014 Cash
Consideration, the &#147;Cash Consideration&#148;), plus accrued and unpaid interest in cash (the &#147;2015 Notes
Total Consideration&#148;). As described in more detail below, the 5.00% New Secured Notes will have
the same terms as the New Secured Notes described in the Offering Memorandum, other than with
respect to interest rate and related redemption provisions, and will vote as a single class with
the 2.00% New Secured Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In exchange for each $1,000 principal amount of all other Senior Notes validly tendered on or prior
to the extended Early Tender and Consent Time and accepted by K. Hovnanian, participating holders
of such Senior Notes will receive $1,000 principal amount of 2.00% Senior Secured Notes due 2021
with terms as described in the Offering Memorandum (the &#147;2.00% New Secured Notes,&#148; and together
with the 5.00% New Secured Notes, the &#147;New Secured Notes&#148;), plus accrued and unpaid interest in
cash (the &#147;Senior Notes Total Consideration&#148;). The 2015 Notes Total Consideration, the 2014 Notes
Total Consideration and the Senior Notes Total Consideration are referred to in this press release
and in the Offering Memorandum as the &#147;Total Consideration.&#148; Unless the Exchange Offers are
further extended, the Early Tender and Consent Time will be at the Expiration Time and all holders
who tender and have their Senior Notes accepted for exchange will receive the Total Consideration.
K. Hovnanian will not accept any tender that would result in the issuance of less than $2,000
principal amount of the applicable New Secured Notes. The aggregate applicable Total Consideration
and/or Exchange Consideration paid to each participating holder for Senior Notes validly tendered
(and not validly
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">withdrawn) and accepted will be rounded down, if necessary, to $2,000 or the nearest whole
multiple of $1,000 in excess thereof. Fractional notes will not be issued and there will not be any
cash payment in lieu thereof. Tenders of 2014 Notes and 2015 Notes may be withdrawn prior to the
extended Withdrawal and Revocation Deadline, but not thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below lists the series of Senior Notes that are the subject of the Exchange Offers and
the applicable Total Consideration and Exchange Consideration, as now amended. In addition, the
table below shows the amount of Senior Notes validly tendered and not validly withdrawn, by Issue,
as of 5:00 p.m., New York City time, on October&nbsp;17, 2011.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000"><B>For each $1,000 Principal Amount of Senior Notes Exchanged</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Tendered as of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>K. Hovnanian</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>as of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>5:00 p.m. on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Consideration if</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Enterprises, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>October 17,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>October 17,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Tender Occurs After</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Acceptance</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Senior Notes to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Consideration if Tender Occurs Prior to or on the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>the Early Tender and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Priority</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exchanged</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>CUSIP No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(in millions)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(in millions)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Early Tender and Consent Time</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Consent Time**</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Level*</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Cash</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>New Senior Secured Notes:*</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>Consideration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>New Secured Notes:*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Any and All Tender Notes</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Notes
due 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488BK7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$130.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$1.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 5.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Partial Tender Notes</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior Notes
due 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488AQ5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$53.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 5.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<SUP>3</SUP>/<FONT style="FONT-size: 60%">8</FONT>% Senior Notes
due 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488AS1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$29.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 5.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">4</FONT>% Senior Notes
due 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488AU6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$52.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 5.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">4</FONT>% Senior Notes
due 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488AY8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$173.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$13.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 2.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior Notes
due 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488AZ5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$172.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$20.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 2.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8<SUP>5</SUP>/<FONT style="FONT-size: 60%">8</FONT>% Senior Notes
due 2017</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">442488BA9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$195.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$21.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>$1,000 of 2.00% New Secured Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>K. Hovnanian will not accept any tender of Senior Notes that would result in the issuance
of less than $2,000 principal amount of New Secured Notes.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Unless the Exchange Offers are further extended, the Early Tender and Consent Time will be at
the Expiration Time and all holders who tender and have their Senior Notes accepted for exchange
will receive the Total Consideration.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As previously announced, K. Hovnanian is offering to exchange (i)&nbsp;any and all of its outstanding
Any and All Tender Notes, and (ii)&nbsp;in accordance with the applicable &#147;Acceptance Priority Level,&#148;
all or a portion of the other Senior Notes listed in the table above (collectively, the &#147;Partial
Tender Notes&#148;), in each case, validly tendered for exchange and accepted, to the extent of the
applicable maximum new issuance amount. The maximum new issuance amount shall either be (i) $195.0
million, in the event that more than 50% of the outstanding aggregate principal amount of the Any
and All Tender Notes is tendered for exchange; or (ii) $220.0&nbsp;million, in the event that 50% or
less of the outstanding aggregate principal amount of the Any and All Tender Notes is tendered for
exchange. K. Hovnanian will accept for exchange any and all of the Any and All Tender Notes
validly tendered (and not validly withdrawn) in the applicable Exchange Offer. The aggregate
principal amount of each Issue of Partial Tender Notes that is exchanged for New Secured Notes in
the exchange offer will be determined in accordance with the modified &#147;Acceptance Priority Level,&#148;
as set forth above, with Level 1 being the highest priority. After K. Hovnanian has accepted all
Senior Notes properly tendered (and not validly withdrawn) having a higher Acceptance Priority
Level than a particular issue of Senior Notes, if the remaining portion of the Maximum New Issuance
Amount is adequate to accept for exchange some but not all of that particular issue of Senior
Notes, then K. Hovnanian will accept for exchange only a portion of the Partial Tender Notes of
that Issue on a pro rata basis among the tendering holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assuming that (i)&nbsp;all of the outstanding 11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% 2015 Notes have been tendered prior to the extended
Early Tender and Consent Time and accepted and (ii)&nbsp;all of the Partial Tender Notes have been
tendered prior to the extended Early Tender and Consent Time and
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accepted to the extent of the High Participation Maximum New Issuance Amount in accordance with the
Acceptance Priority Level of each Issue, the aggregate Cash Consideration that would be payable
upon consummation of the Exchange Offers is $19.5&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">K. Hovnanian&#146;s debt service payments for the 12-month period ended July&nbsp;31, 2011 on a historical
basis were $153.8&nbsp;million. On a pro forma basis, assuming no further participation in the Exchange
Offers apart from the Senior Notes that have been tendered as of October&nbsp;17, 2011, as set forth
above, debt service payments for such period would have been $150.6&nbsp;million. Assuming all of the
outstanding 11<SUP style="font-size: 85%; vertical-align: text-top">7</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% 2015 Notes have been tendered prior to the extended Early Tender and Consent Time
and accepted, and all of the Partial Tender Notes have been tendered prior to the extended Early
Tender and Consent Time and accepted to the extent of the High Participation Maximum New Issuance
Amount in accordance with the Acceptance Priority Level of each Issue, debt service payments for
such period on a pro forma basis would have been $144.0&nbsp;million. In each case, the debt service
payments represent interest incurred (as there were no mandatory principal payments on our
corporate debt under the terms of our indentures), but do not include principal and interest on
nonrecourse secured debt, debt of our financial subsidiaries and fees under our letter of credit
facilities and agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As previously announced, in conjunction with the Exchange Offers, K. Hovnanian is soliciting, for
no consideration, from holders of the Any and All Tender Notes consents to certain proposed
amendments to the indenture governing the Any and All Tender Notes to eliminate substantially all
of the restrictive covenants and certain of the default provisions contained in such indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the amendments to the Exchange Offers for the 2014 Notes and the 2015 Notes, the
Company is amending the first and second paragraphs in the Offering Memorandum under the caption
&#147;Description of New Secured Notes&#148;, the first paragraph under the caption &#147;Description of New
Secured Notes&#151;General&#148; and the penultimate paragraph under the caption &#147;Description of New Secured
Notes&#151;Redemption.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>In this section, references to the &#147;Company&#148; mean Hovnanian Enterprises, Inc., a
Delaware corporation, and do not include K. Hovnanian Enterprises, Inc. or any of its
subsidiaries, and references to the &#147;Issuer,&#148; &#147;us,&#148; &#147;we&#148; or &#147;our&#148; mean K. Hovnanian
Enterprises, Inc., a California corporation. References to &#147;Notes&#148; in this section are
references to, collectively, the 5.00% Senior Secured Notes due 2021 (the &#147;5.00% New Secured
Notes&#148;) and the 2.00% Senior Secured Notes due 2021 (the &#147;2.00% New Secured Notes&#148;) offered
hereby.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Exchange Offers are consummated, the Notes will be issued under an indenture (the
&#147;Indenture&#148;), to be dated as of the Issue Date, among the Issuer, the Guarantors and
Wilmington Trust, National Association, as trustee (the &#147;Trustee&#148;). The 5.00% New Secured
Notes and the 2.00% New Secured Notes will be separate series but will vote together as a
single class for all purposes under the Indenture. The following is a summary of the
material terms and provisions of the Notes. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (the &#147;Trust Indenture Act&#148;), as in effect on the date of the Indenture. The
Notes are subject to all such terms, and prospective purchasers of the Notes are referred to
the Indenture and the Trust Indenture Act for a statement of such terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes will bear interest from the Issue Date at the rate per annum of 5.00%, in the
case of the 5.00% New Secured Notes, and 2.00%, in the case of the 2.00% New Secured Notes,
in each case, payable semi-annually on May 1 and November 1 of each year, commencing May&nbsp;1,
2012, to Holders of record at the close of business on April&nbsp;15 or October&nbsp;15, as the case
may be, immediately preceding each such interest payment date. The Notes will mature on
November&nbsp;1, 2021, and will be issued in denominations of $2,000 and higher integral multiples
of $1,000. Interest will be computed on the basis of a 360-day year consisting of twelve
30-day months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Redemption</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time and from time to time prior to November&nbsp;1, 2014, the Issuer may redeem the 2.00%
New Secured Notes with the net cash proceeds received by the Issuer from any Equity Offering of the
Company at a redemption price equal to 102% of the principal amount plus accrued and unpaid
interest to the redemption date, in an aggregate principal amount for all such redemptions not to
exceed 35% of the original aggregate principal amount of the 2.00% New Secured Notes (including
Additional Notes) <I>provided </I>that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in each case the redemption takes place not later than 60&nbsp;days after the closing of the
related Equity Offering, and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) not less than 65% of the original aggregate principal amount of the 2.00% New Secured
Notes (including Additional Notes) remains outstanding immediately thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time and from time to time prior to November&nbsp;1, 2014, the Issuer may redeem the 5.00%
New Secured Notes with the net cash proceeds received by the Issuer from any Equity Offering of the
Company at a redemption price equal to 105% of the principal amount plus accrued and unpaid
interest to the redemption date, in an aggregate principal amount for all such redemptions not to
exceed 35% of the original aggregate principal amount of the 5.00% New Secured Notes (including
Additional Notes) <I>provided </I>that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in each case the redemption takes place not later than 60&nbsp;days after the closing of the
related Equity Offering, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) not less than 65% of the original aggregate principal amount of the 5.00% New Secured
Notes (including Additional Notes) remains outstanding immediately thereafter.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the amendments to the Exchange Offers in respect of the 2014 Notes and the 2015
Notes, the Company is amending the second and third paragraphs in the Offering Memorandum under the
caption &#147;Certain U.S. Federal Income Tax Considerations&#151;Tax Consequences to U.S. Holders&#151;Tax
Consequences of the Exchange&#148; to read as set forth below.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the exchange of any of the Partial Tender Notes for the New Secured Notes is treated
as a recapitalization, you will generally not recognize any gain or loss on the exchange,
except that you will recognize any gain on the exchange (computed in the manner described in
the succeeding paragraph) to the extent of any Cash Consideration received. In addition, your
initial tax basis in the New Secured Notes received in the exchange will generally be equal
to your tax basis in the Partial Tender Notes exchanged therefor, increased by any gain
recognized on the exchange and reduced by any Cash Consideration received. Your holding
period for such New Secured Notes will generally include the period during which you held the
Partial Tender Notes surrendered in the exchange.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the exchange of any of the Senior Notes for the New Secured Notes is not treated as a
recapitalization (such as the exchange of Any and All Tender Notes for the New Secured
Notes), you will generally recognize gain or loss on the exchange equal to the difference, if
any, between (i)&nbsp;the aggregate &#147;issue price&#148; (determined as described below under &#147;Issue
Price of the New Secured Notes&#148;) of the New Secured Notes received in exchange for such
Senior Notes at the time of the exchange plus any Cash Consideration received and (ii)&nbsp;your
adjusted tax basis in the Senior Notes exchanged therefor. Your adjusted tax basis in the
Senior Notes will generally equal the amount paid therefor, increased, in the case of Any and
All Tender Notes, by any OID previously accrued. If applicable, your tax basis in a Senior
Note also will generally be (i)&nbsp;increased by market discount, if any, previously taken into
account and (ii)&nbsp;reduced by any amortizable bond premium previously amortized. Your initial
tax basis in the New Secured Notes will generally equal their issue price (determined as
described below) and you will generally have a new holding period in the New Secured Notes
commencing the day after the exchange. Any gain or loss you recognize will generally be
capital gain or loss (although as described below, all or a portion of any recognized gain
could be subject to ordinary income treatment if you acquired the Senior Notes with market
discount) and will be long-term capital gain or loss if the Senior Notes have been held for
more than one year. Non-corporate U.S. Holders (including individuals) are eligible for
reduced rates of taxation on long-term capital gains. The deductibility of capital losses is
subject to limitations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the Company does not intend to withhold U.S. federal income tax on any Cash
Consideration paid to Non-U.S. Holders (as defined in &#147;Certain U.S. Federal Income Tax
Considerations&#148;) in connection with their exchange of Senior Notes for New Secured Notes, and the
discussion in the Offering Memorandum under the caption &#147;Certain U.S. Federal Income Tax
Considerations&#151;Backup Withholding and Information Reporting,&#148; insofar as it relates to the
exchange of Senior Notes for New Secured Notes, applies equally to any Cash Consideration received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Exchange Offers are being made within the United States only to &#147;qualified institutional
buyers&#148; pursuant to Rule&nbsp;144A under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;),
and outside the United States to non-U.S. investors pursuant to Regulation&nbsp;S under the Securities
Act. The New Secured Notes to be offered have not been and will not be registered under the
Securities Act and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press release does not constitute an
offer to sell or the solicitation of an offer to buy Senior Notes or New Secured Notes in any
jurisdiction in which such an offer or sale would be unlawful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The complete terms and conditions of the Exchange Offers and Consent Solicitation are described in
the Offering Memorandum, as amended to date, and the accompanying Letter of Transmittal. K.
Hovnanian&#146;s obligation to accept any Senior Notes tendered and to
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pay the applicable consideration
for them is set forth solely in the Offering Memorandum and the accompanying Consent and Letter of
Transmittal, as amended to date. Documents relating to the Exchange Offers will only be
distributed to holders of Senior Notes who complete a letter of eligibility confirming that they
are within the category of eligible holders for the Exchange Offers. Copies of the eligibility
letter are available to holders of the Senior Notes through the information agent, Global
Bondholder Services Corporation, at (866)&nbsp;389-1500 (toll free) or (212)&nbsp;430-3774 (collect). The
Exchange Offers are made only by, and pursuant to, the terms set forth in the Offering Memorandum,
and the information in this press release is qualified by reference to the Offering Memorandum and
the accompanying Letter of Transmittal. Subject to applicable law, K. Hovnanian may amend, extend
or terminate the Exchange Offers and the consent solicitation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recent Events</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On October&nbsp;5, 2011, following our announcement of the proposed Exchange Offers and Consent
Solicitation, Standard &#038; Poor&#146;s (&#147;S&#038;P&#148;) downgraded our corporate credit rating from CCC to CC,
downgraded the rating of our First Lien Notes from CCC to CC, and downgraded our Senior Notes from
CC to C. In addition, S&#038;P indicated that if we consummate the proposed Exchange Offers, it will
likely lower our corporate credit rating to SD and downgrade the Senior Notes that are not tendered
or not accepted for exchange to D. On October&nbsp;5, 2011, following our announcement of the proposed
Exchange Offers and Consent Solicitation, Fitch Ratings placed us on &#147;Rating Watch Negative.&#148; On
October&nbsp;7, 2011, Moody&#146;s Investor Services (&#147;Moody&#146;s&#148;) issued a press release indicating that while
the final outcome will depend on the amount of participation in the Exchange Offers, it is likely
that the consummation of the Exchange Offers will cause Moody&#146;s rating on the First Lien Notes to
be lowered to B3 from B2 and that the New Secured Notes will similarly be assigned a rating of B3.
There can be no assurances that our credit ratings will not be further downgraded in the future,
whether as a result of the consummation of the Exchange Offers and Consent Solicitation or
otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">About Hovnanian Enterprises
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank,
New Jersey. The Company is one of the nation&#146;s largest homebuilders with operations in Arizona,
California, Delaware, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia.
The Company&#146;s homes are marketed and sold under the trade names K. Hovnanian<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> Homes<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, Matzel &#038;
Mumford, Brighton Homes, Parkwood Builders, Town &#038; Country Homes and Oster Homes. As the developer
of K. Hovnanian&#146;s<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> Four Seasons communities, the Company is also one of the nation&#146;s largest
builders of active adult homes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Forward-Looking Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All statements in this press release that are not historical facts should be considered as
&#147;forward-looking statements&#148;. 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. Although we believe that the Company&#146;s plans, intentions and
expectations reflected in, or suggested by such forward-looking statements are reasonable, neither
we nor the Company can provide assurance that such plans, intentions or expectations will be
achieved. Such risks, uncertainties and other factors include, but are not limited to, (1)&nbsp;changes
in general and local economic and industry and business conditions and impacts of the sustained
homebuilding downturn, (2)&nbsp;adverse weather, natural disasters and environmental conditions, (3)
changes in market conditions and seasonality of the Company&#146;s business, (4)&nbsp;changes in home prices
and sales activity in the markets where the Company builds homes, (5)&nbsp;government laws and
regulations, including, among others, those concerning development of land, the home building,
sales and customer financing processes, tax laws, and the protection of the environment, (6)
fluctuations in interest rates and the availability of mortgage financing, (7)&nbsp;shortages in, and
price fluctuations of, raw materials and labor, (8)&nbsp;the availability and cost of suitable land and
improved lots, (9)&nbsp;levels of competition, (10)&nbsp;availability of financing to the Company, (11)
utility shortages and outages or rate fluctuations, (12)&nbsp;levels of indebtedness and restrictions on
the Company&#146;s operations and activities imposed by the agreements governing the Company&#146;s
outstanding indebtedness, (13)&nbsp;the Company&#146;s sources of liquidity, (14)&nbsp;changes in the Company&#146;s
credit ratings, (15)&nbsp;availability of net operating loss carryforwards, (16)&nbsp;operations through
joint ventures with third parties, (17)&nbsp;product liability litigation and warranty claims, (18)
successful identification and integration of acquisitions, (19)&nbsp;significant influence of the
Company&#146;s controlling stockholders, (20)&nbsp;geopolitical risks, terrorist acts and other acts of war,
and (21)&nbsp;other factors described in detail in the Company&#146;s Annual Report on Form 10-K/A for the
year ended October&nbsp;31, 2010 and the Company&#146;s quarterly reports on Form 10-Q or 10-Q/A for the
quarters ended January&nbsp;31, 2011, April&nbsp;30, 2011 and July&nbsp;31, 2011, respectively and in the Offering
Memorandum under &#147;Risk Factors.&#148; All forward-looking statements attributable to the Company, us or
persons acting on the Company&#146;s or our behalf are expressly qualified in their entirety by the
cautionary statements and risk factors contained throughout the Offering Memorandum. Except as
otherwise
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">required by applicable securities laws, neither we nor the Company undertakes any
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.
</DIV>



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