Hovnanian Enterprises Announces Changes to Its Board of Directors

Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, announced today the election of two new independent members, Robert B. Coutts and Joseph A. Marengi, to serve on its Board of Directors. They replace two retiring directors, Arthur M. Greenbaum and Desmond P. McDonald, who have served as Directors since 1992 and 1982, respectively.

"We are very pleased to welcome Robert and Joe to Hovnanian's Board of Directors," said Ara K. Hovnanian, President and Chief Executive Officer of the Company. "Their collective experience encompasses customer service, supply-chain management and manufacturing efficiencies and will provide valuable insight as we execute our strategic plan for continued growth and profitability. Our past business and financial success has been supported by astute counsel from our Board of Directors, and we anticipate that future participation from Robert and Joe will allow us to further build upon our solid market position and improve our operating processes."

"Arthur and Desmond have contributed greatly to our Company's success. We have valued their strong counsel and support, and wish to thank them for helping position Hovnanian as one of the largest and most well respected homebuilders in the country," Ara K. Hovnanian said.

"Over many years of service, Arthur and Desmond have been a tremendous resource to our Company," commented Kevork S. Hovnanian, Founder and Chairman of the Company. "They have been trusted advisors during a time of remarkable changes here at Hovnanian. During their tenure, we greatly diversified our geographic footprint, as well as the variety of products that we build. We also became much more diligent managers of our balance sheet through increased focus on achieving high returns on capital and reducing our ratio of net debt to capitalization. All the while Arthur and Desmond have provided excellent guidance, and we feel fortunate to have benefited from their expertise. We wish them all the best in their future endeavors," concluded Kevork S. Hovnanian.

Since 1999, Mr. Coutts, 55, has served as Executive Vice President at Lockheed Martin Corporation and is currently responsible for the Company's Electronic Systems business area, which has sales of more than $10 billion. Lockheed Martin's Electronic Systems provides integrated hardware and software solutions to ensure readiness of armed forces and government agencies worldwide. Mr. Coutts began his career at General Electric Corporation in 1972 and joined Martin Marietta during the GE Aerospace merger in 1993. He came to Lockheed Martin, in 1995, when Lockheed merged with Martin Marietta. During his tenure, he has held positions of increasing responsibility and brings extensive experience in managing complex manufacturing businesses. He is currently a member of the Board of Directors of several Lockheed Martin subsidiaries. Mr. Coutts is also currently CEO and Deputy Chairman of the Association of the U.S. Army Council of Trustees, a member of the Board of Governors of Wesley Theological Seminary, and the Board of Overseers, College of Engineering, Tufts University. He holds a Bachelor of Science degree in mechanical engineering from Tufts University.

Mr. Marengi, 52, serves as Senior Vice President, for Dell Inc.'s Americas business, which includes the U.S. Consumer Business and Dell International Services. He joined Dell in July 1997 from Novell Inc. where he was President and Chief Operating Officer. Mr. Marengi joined Novell in 1989 and moved through successive promotions to become Executive Vice President of worldwide sales and field operations. For ten years prior to joining Novell, he served in various other executive, sales and information management positions. Mr. Marengi also serves on the Corporate Advisory Board of the USC Marshall School of Business and is a member of the board for Dell Financial Services. Mr. Marengi earned a Bachelor of Science in Public Administration from the University of Massachusetts Boston and a Master of Science in Management from the University of Southern California.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Illinois, Maryland, Michigan, 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, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Windward Homes, Cambridge Homes, Town & Country Homes, Oster Homes and First Home Builders of Florida. 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.

Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2005 annual report, can be accessed through the "Investor Relations" section of Hovnanian Enterprises' website at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

Hovnanian Enterprises, Inc. is a member of the Public Home Builders Council of America ("PHBCA") (http://www.phbca.org), a nonprofit group devoted to improving understanding of the business practices of America's largest publicly-traded home building companies, the competitive advantages they bring to the home building market, and their commitment to creating value for their home buyers and stockholders. The PHBCA's 14 member companies build one out of every five homes in the United States.

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