Hovnanian Enterprises Announces 22.4% Increase in Dollar Value of Net Contracts for the Month of March 2005

RED BANK, N.J., April 5, 2005 -- Hovnanian Enterprises, Inc. (HOV), a leading national homebuilder, announced today preliminary net contracts for the month of March 2005. Including unconsolidated joint ventures, the dollar value of net contracts for March 2005 increased 22.4% over the same period in the previous year. Hovnanian expects community count growth and stronger increases in year-over-year consolidated net contract comparisons in the second half of fiscal 2005. Including 20 communities from the Company's Orlando acquisition, the number of consolidated active selling communities at the end of March 2005 increased to 310 communities from 287 communities at the end of March 2004.

March      % Change      March       % Change
                             2005         From        2005          From
                         Net Contracts  March 2004 Net Contracts   March 2004
                                                  ($ in millions)

    Northeast                 245         -29.6%      $89.2         -26.7%
    (NJ, NY, PA, OH)
    Southeast(1)              485           7.3%      174.2          40.0%
    (FL, MD, NC, SC, VA, WV)
    Southwest                 428          12.9%       86.1          27.9%
    (AZ, TX)
    West                      401         -20.3%      171.3         -11.1%
    (CA)
    Consolidated Total:     1,559          -7.3%     $520.8           2.9%

    Unconsolidated Joint
     Ventures(1)              351           N/M       129.6           N/M

     Total:                 1,910          11.2%     $650.4          22.4%


    NOTE:
    (1) The number and the dollar amount of net contracts in the Southeast in
        March 2005 include the effect of the Cambridge Homes acquisition,
        which closed in March 2005.  The number and the dollar amount of net
        contracts in Unconsolidated Joint Ventures in March 2005 include the
        effect of the Town & Country Homes acquisition, which closed in March
        2005.


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, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders, Great Western Homes, Windward Homes, Cambridge Homes and Town & Country Homes. 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 2004 annual report, can be accessed through the Investor Relations page of the Hovnanian 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.

Note: All statements in this Press Release that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and business conditions, (2) weather conditions, (3) changes in market conditions, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the homebuilding process and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in and price fluctuations of raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) geopolitical risks, terrorist acts and other acts of war and (13) other factors described in detail in the Company's Form 10-K for the year ended October 31, 2004.

SOURCE Hovnanian Enterprises, Inc.

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