Hovnanian Losses Multiply Over Last Year

Red Bank, NJ, June 4, 2008--Hovnanian Enterprises Inc.'s reported a second quarter net loss of $340.7 million, or $5.49 a share, compared with a net loss of $28.1 million, or 49 cents a share, a year earlier.

"Despite a persistently challenging market environment, we successfully achieved positive cash flow one quarter earlier than we originally expected at the outset of the year," said Chief Executive Ara Hovnanian.

"Through the combination of our recent capital market activity and increased cash flow expectations, we now believe that we have ample liquidity to weather the current downturn."

The latest results included $251 million of land-related pretax charges, including $226.4 million in land impairments, a $19.1 million write-off of predevelopment costs and deposits on land it had an option to buy, and $5.1 million from write-downs at its unconsolidated joint ventures.