KB Urban, AEG Announce Marriott Marquis Hotel, Ritz-Carlton and The Residences at The Ritz-Carlton for L.A. Live Development in Downtown Los Angeles

-- Unique Partnership To Combine Convention Center 'Headquarters Hotel,' Luxury Hotel and Privately Owned Residences in One Landmark Tower

-- Prominent Interior Designers Peter Remedios, Cheryl Rowley Join Development Team

KB Urban, the high-density, mixed-use subsidiary of KB Home(NYSE:KBH), one of the nation's premier homebuilders and AEG, one ofthe leading sports and entertainment presenters in the world, todayannounced an agreement with Marriott International, Inc. (NYSE:MAR) toopen two luxury hotel properties and private residences at the L.A.Live sports and entertainment district currently under construction indowntown Los Angeles.

Marriott Hotel Services, Inc. will be the exclusive hotel operatorof the Los Angeles Marriott Marquis and The Ritz-Carlton HotelCompany, LLC, a wholly owned subsidiary of Marriott International,will manage The Ritz-Carlton Hotel, Los Angeles. KB Urban and AEG areco-developers of the approximately 2 million square foot property.

Under the terms of the agreement, the complex will include the LosAngeles Marriott Marquis, an 876-room property, which will serve asthe headquarters hotel of The Los Angeles Convention Center, and TheRitz-Carlton, Los Angeles, a 124-room boutique hotel. Above thehotels, and towering over the downtown Los Angeles skyline, will beapproximately 216 residential condominiums developed by KB Urban knownas The Residences at The Ritz-Carlton, Los Angeles. The sales centeris scheduled to open in the first quarter of 2007. Opening dates forthe properties are scheduled for 2010.

The hotel and residential complex will be housed in anarchitecturally stunning, Gensler-designed 54-story tower, which willserve as a beacon for L.A. Live. Hotel guests and condominiumresidents will be at the center of an energetic, world-class sportsand entertainment campus, mere steps from STAPLES Center, 7,100-seatNokia Theater Los Angeles, a 15-screen, 3,800-seat Regal Cineplex,which will include an 800-seat premiere presentation theater, TheGrammy(R) Museum and numerous premier restaurants, nightclubs andcafes, and minutes away from Southern California's world-renownedmuseums and arts institutions, cultural centers, universities, andconcert halls.

"We are very pleased and excited to be selected as the hotelcomponent of L.A. Live, one of the largest and most important downtowndevelopments to take place anywhere in the country over the next fewyears," said J. W. Marriott, Jr., chairman and CEO of MarriottInternational, Inc. "We look forward to working with our partners AEGand KB Urban to bring the world-class service and luxury experiencesof our Ritz-Carlton and Marriott brands to what surely will be a totalexperience like no other at L.A. Live."

The Residences at The Ritz-Carlton, Los Angeles will includeapproximately 216 luxuriously appointed private condominiums, rangingfrom one to four bedrooms. Owners of The Residences will be affordedaccess to many of the legendary services and world-class amenities ofThe Ritz-Carlton, such as concierge, valet, housekeeping and in-roomcatering services. Conceptual plans also include a soaring two-storysky lobby on the 36th floor, a private elevator entree to TheResidences, a library, multi-seat home theater and a spa with afitness center. Additionally, the benefits of ownership will includeVIP access to events at STAPLES Center, Nokia Theater Los Angeles andClub Nokia, as well as other special events at entertainment venuesowned and operated by AEG around the world.

"KB Urban and AEG's partnership with The Ritz-Carlton and MarriottHotel brands represents a significant milestone for L.A. Live and forthe City of Los Angeles," said KB Urban President Jeffrey M. Gault,AIA. "The prestige of owning a luxury condominium, with Ritz-Carltonamenities and attentiveness, in the heart of downtown Los Angeles,will be tremendously enticing to those who live in the U.S., as wellas those who live abroad but spend a considerable amount of time inSouthern California." Continued Gault, "For this buyer, a home at TheRitz-Carlton Residences is about needs anticipated, privacy ensuredand living a vibrant lifestyle in the center of one of the world'sgreatest cities. L.A. Live will offer those unforgettable experienceswith dining, live entertainment, sporting events and much more."

Situated atop the Los Angeles Marriott Marquis, The Ritz-Carlton,Los Angeles will offer stunning views of the city skyline. The luxuryhotel will feature an outdoor rooftop swimming pool and terrace abovea two-story lobby on the 24th floor. A gourmet restaurant and bar willbe adjacent to the lobby. The Los Angeles Marriott Marquis will occupy18 floors, and offer an array of meeting spaces, including the largestballroom in the city, with capacity for up to 3,000 seated guests. Arestaurant, fitness center, and day spa are just some of the specialamenities planned for the site.

"This is an extremely momentous agreement not only for L.A. Livebut for the Los Angeles Convention Center and the City of Los Angelesas well," said Timothy J. Leiweke, president and CEO of AEG. "Thecommitment from Marriott International, considered to be the mostknowledgeable company on convention center 'headquarters hotels' andtheir Marriott Marquis and The Ritz Carlton brands, clearly verifiesthe industry's excitement and enthusiasm for downtown Los Angeles, theconvention center and L.A. Live. This incredible property will bothenergize the Los Angeles convention marketplace, while serving as acentral component of L.A. Live, the most significant development everundertaken in Los Angeles. On behalf of AEG and our partners at KBUrban, we thank the Marriott and The Ritz-Carlton organizations fortheir commitment to this groundbreaking venture and their commitmentto the future of our City."

Peter Remedios, president and managing principal of RemediosSiembieda, Inc., will design the interior spaces for The Ritz-CarltonHotel, Los Angeles and The Residences at The Ritz-Carlton, LosAngeles. The world-renowned firm has designed hotel interiors,restaurants and spas at such picturesque properties as the Grand Hyattin Tokyo and Beijing, Four Seasons New York, L'Ermitage Beverly Hills,Mandarin Oriental Hong Kong, and many more throughout North America,Asia, Europe and the Middle East.

Cheryl Rowley, principal of Cheryl Rowley Design, has beenselected to design the interior spaces for the Los Angles MarriottMarquis. Rowley's award-winning firm has designed hotels, spas,country clubs and restaurants in such locales as the Four SeasonsBuenos Aires, Ojai Valley Inn & Spa, The Ritz-Carlton San Francisco,Hotel Monaco in Washington, DC and others across the globe.

Architectural Description

As the centerpiece of L.A. Live, the soaring hotel and residentialhigh-rise will complement the architectural design of Nokia TheaterLos Angeles, STAPLES Center and other buildings in the vast sports andentertainment district. The 54-story building's elegant exterior willfeature a metal and glass curtain wall, and will consist of bothvision and non-vision glass units in colors of blue and green andpatterns to create a distinctive profile, emphasizing the slenderproportions of the building. As it rises into the downtown skyline,the building will have an ever-changing sculptural quality as it isviewed from throughout Los Angeles.

About KB Home

Building homes for nearly half a century, KB Home is one ofAmerica's premier homebuilders with domestic operating divisions insome of the fastest-growing regions and states: WestCoast--California; Southwest--Arizona, Nevada and New Mexico;Central--Colorado, Illinois, Indiana, Louisiana and Texas; andSoutheast--Florida, Georgia, Maryland, North Carolina, South Carolinaand Virginia. Kaufman & Broad S.A., the Company's publicly-tradedFrench subsidiary, is one of the leading homebuilders in France. Infiscal 2005, the Company delivered homes to 37,140 families in theUnited States and France. KB Home also offers complete mortgageservices through Countrywide KB Home Loans, a joint venture withCountrywide Financial Corporation. Founded in 1957, and ranked the #1homebuilder in Fortune Magazine's 2006 list of America's Most AdmiredCompanies, KB Home is a Fortune 500 company listed on the New YorkStock Exchange under the ticker symbol "KBH." For more informationabout any of KB Home's new home communities, call 888-KB-HOMES(888-KB-CASAS) or visit http://www.kbhome.com (http://www.kbcasa.com).

About AEG

AEG is one of the leading sports and entertainment presenters inthe world. AEG, a wholly owned subsidiary of the Anschutz Company,owns or controls a collection of companies including facilities suchas STAPLES Center, The Forum (as exclusive booking agent for sportsand entertainment programming), Toyota Sports Center, Toyota Park,Anaheim Arena (as preferred booking agent), NOKIA Theatre TimesSquare, NOKIA Theatre at Grand Prairie and London's Manchester EveningNews Arena; sports franchises throughout the world including the LosAngeles Kings (NHL), Los Angeles Riptide (MLL) and four MLSfranchises. In addition, AEG has recently developed and opened TheHome Depot Center, a $150 million national training "campus" inCarson, California designated as an "Official U.S. Olympic TrainingSite" by the United States Olympic Committee that includes majorfacilities for soccer, tennis, track & field, cycling, action sports,beach volleyball, basketball and other sports. The company's liveentertainment division, AEG LIVE is one of the world's leading concertpromotion and touring organization.

AEG is overseeing the development of L.A. Live, a 4 million squarefoot / $2.5 billion downtown Los Angeles sports & entertainmentdistrict featuring NOKIA Theatre Los Angeles, a 7,100-seatstate-of-the-art live theatre, a 50-story, 1100-room convention"headquarters" hotel, Club NOKIA, a 2,200 capacity live music venue, a14-screen Regal Cineplex, "broadcast" facilities for ESPN, along withentertainment, restaurant, residential and office space. The companyhas begun fully developing the 28-acre Millennium Dome and adjacentproperty located in the eastern part of London along the Thames Riverand will create The O2, which includes a 23,000-seat arena and over650,000sf of leisure and entertainment use within the 'Dome' andadditional arenas, O2 World, on a 45-acre site in the heart of Berlin,in Ontario, California and Sprint Center in Kansas City, Missouri aswell as a soccer stadium in Harrison, New Jersey.

About Marriott International

MARRIOTT INTERNATIONAL, INC. (NYSE:MAR) is a leading lodgingcompany with nearly 2,800 lodging properties in the United States and66 other countries and territories. Marriott International operatesand franchises hotels under the Marriott, JW Marriott, THERITZ-CARLTON, Renaissance, Residence Inn, Courtyard, TownePlaceSuites, Fairfield Inn, SpringHill Suites and Bulgari brand names;develops and operates vacation ownership resorts under the MarriottVacation Club International, Horizons, The RITZ-CARLTON Club and GrandResidences by Marriott brands; operates Marriott Executive Apartments;provides furnished corporate housing through its Marriott ExecuStaydivision; and operates conference centers. The company isheadquartered in Washington, D.C., and has approximately 143,000employees at 2005 year-end. In fiscal year 2005, MarriottInternational reported sales from continuing operations of $11.6billion. For more information or reservations, please visit our website at www.marriott.com.