THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

KB Home (KBH)

3/6/2006 Proxy Information

Matthew Karatz, a director of land acquisition and planning for our Greater Los Angeles division, is the son of Bruce Karatz, our Chairman and Chief Executive Officer. In fiscal year 2005, Matthew Karatz earned $255,600, comprised of salary, bonus and an automobile and gas allowance. Robert Karatz, a sales representative for our Greater Los Angeles division, is the brother of Bruce Karatz. In fiscal year 2005, Robert Karatz earned $128,050, comprised of salary, bonus and an automobile and gas allowance. The compensation earned by these individuals, both of whom joined us in 2002, is consistent with compensation paid to other employees in similar positions.

2/24/2005 Proxy Information

Matthew Karatz, manager of land acquisition and planning for the Company’s Los Angeles division, is the son of Bruce Karatz, the Company’s Chairman and Chief Executive Officer. In fiscal 2004, Matthew Karatz earned $160,775 ($164,522 including auto allowance and gas) in salary and bonus. Robert Karatz, a broker liaison for the Company’s Los Angeles division, is the brother of Bruce Karatz. In fiscal 2004, Robert Karatz earned $69,600 in bonus and commissions ($75,039 including auto allowance and gas). The compensation earned by these individuals, both of whom joined the Company in 2002, is consistent with compensation paid to other KB Home employees in similar positions.

3/1/2004 Proxy Information

Matthew Karatz, manager of land acquisition and planning for the Company’s Los Angeles division, is the son of Bruce Karatz, the Company’s Chairman and Chief Executive Officer. In fiscal 2003, Matthew Karatz earned $99,725 in salary and bonus. Robert Karatz, a sales representative for the Company’s Los Angeles division, is the brother of Bruce Karatz. In fiscal 2003, Robert Karatz earned $133,027 in salary, bonus and commissions. The compensation earned by these individuals, both of whom joined the Company in 2002, is consistent with compensation paid to other KB Home employees in similar positions.

Henry G. Cisneros is founder, Chairman and Chief Executive Officer of American CityVista, a joint venture with KB Home to build homes in metropolitan areas

Kenneth M. Jastrow has been Chairman and Chief Executive Officer of Temple-Inland Inc. since 2000. He served as President and Chief Operating Officer in 1998 and 2000, Group Vice President from 1995 until 1998, and as Chief Financial Officer from November 1991 until 1999. KB Home has contracts with Temple-Inland and its subsidiaries.