EXHIBIT 99.1

NEWS BULLETIN
M.D.C. HOLDINGS, INC.	RICHMOND AMERICAN HOMES HOMEAMERICAN MORTGAGE

FOR IMMEDIATE RELEASE
TUESDAY, JANUARY 17, 2006

Contacts:	Paris G. Reece III	Robert N. Martin	Richard Matthews
	Chief Financial Officer	Investor Relations	Rubenstein Communications
	(303) 804-7706	(720) 977-3431	(212) 843-8267
	greece@mdch.com	bnmartin@mdch.com	rmatthews@rubenstein.com

M.D.C. HOLDINGS REPORTS 35% AND 25% INCREASES IN
FOURTH QUARTER AND FULL YEAR EARNINGS PER SHARE

2005 FOURTH QUARTER

• Earnings per share of $4.29 vs. $3.17 in 2004, up 35%

• Net income of $197.5 million, up 38%

• Total revenues of $1.7 billion, a 29% increase

• Estimated value of home orders up 9%

• SG&A as a percent of home sales revenues 90 basis points lower than 2004

2005 FULL YEAR AND 2006 OUTLOOK

• Earnings per share of $10.99 vs. $8.79 in 2004, up 25%

• Net income of $505.7 million, a 29% increase from 2004

• Total revenues of $4.9 billion, up 22%

• Homebuilding and corporate debt-to-capital ratio, net of cash, of .28

• After-tax return on equity of 30.6%

• Homebuilding operating margin of 18.7% vs. 18.2% in 2004

• Record year-end backlog valued at $2.44 billion, up 27%

• Well-positioned for higher revenues, home closings and net income in 2006

     DENVER, Tuesday, January 17, 2006 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the quarter ended December 31, 2005 of $197.5 million, or $4.29 per share, compared with net income of $142.6 million, or $3.17 per share, for the same period in

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M.D.C. HOLDINGS, INC.
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2004. This earnings growth was derived primarily from increased levels of home closings and average selling prices.

     Net income for the year ended December 31, 2005 was $505.7 million, or $10.99 per share, 29% higher than the $391.2 million, or $8.79 per share, for the same period in 2004. Total revenues for the year ended December 31, 2005 reached $4.88 billion, representing an increase of 22% from revenues of $4.01 billion for the year ended December 31, 2004.

     “We are pleased to announce our 10^th consecutive year of earnings growth, which we concluded with the strongest quarterly results of our 34 years in business,” said Larry A. Mizel, MDC’s chairman and chief executive officer. “The successful execution of our business model enabled us to produce exceptional returns in 2005, including after-tax returns on average equity and assets of 31% and 16%, respectively. At the same time, we continued to maintain a strong financial position, as represented by our year-end ratio of homebuilding and corporate debt-to-capital, net of cash, of .28, which ranks among the best in the homebuilding industry. In addition, we ended the year with over $1.2 billion in available cash and borrowing capacity, more than at any other time in our history.”

     Mizel continued, “Our record performance in 2005 continues a long history of earnings growth. Over the last decade, we have withstood a host of national and world-level challenges to increase our earnings at an average year-over-year growth rate of more than 40%. During this 10-year time span, we have generated improved year-over-year earnings in 36 of 40 quarterly periods, while we have grown our stockholders’ equity by 850% and improved our after-tax return on average equity by 2,200 basis points. Our robust and quality growth has propelled our Company to its prestigious investment grade status and established us as a performance leader, not only in our industry, but among all public companies in the nation. In 2005, we achieved Fortune 500 status and ranked #6 in the Barron’s 500, and we were recently named to the Forbes Platinum 400 as one of ‘America’s Best Big Companies’ for the eighth consecutive year. These accomplishments are a testament to our operating discipline, our conservative and strategic allocation of capital, the strength of our markets and the dedication of our employees and business associates throughout the country.”

     Mizel concluded, “As always, we remain committed to our goal of increasing long-term shareowner value. Our actions in pursuit of this goal have positioned us well to continue to grow and produce new Company highs for home closings, revenues and earnings in 2006.”

     Please refer to the last paragraph of this release for a discussion of factors that may impact the Company’s estimates of home closings, revenues and earnings.

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M.D.C. HOLDINGS, INC.
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Growth in Homebuilding Profits

     Homebuilding operating profits for the quarter and year ended December 31, 2005 were $337.8 million and $902.6 million, respectively, representing increases of 30% and 25% over profits of $260.2 million and $719.2 million, respectively, for the same periods in 2004. Homebuilding operating margins in the 2005 fourth quarter and full year improved to 19.7% and 18.7%, respectively, from 19.6% and 18.2% for comparable periods in 2004. These 2005 increases largely resulted from increased levels of home closings and higher average selling prices. The Company closed 4,951 homes and 15,307 homes, respectively, in the quarter and year ended December 31, 2005, 15% and 10% higher than home closings in the same periods in 2004. Average selling prices reached $345,100 and $313,800, respectively, for the quarter and year ended December 31, 2005, representing year-over-year increases of 13% and 11%. During the quarter and year ended December 31, 2005, the Company’s home gross margins were 27.9% and 28.4%, respectively, compared with 28.2% and 27.7% for the comparable periods in 2004.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “Our record 2005 homebuilding profits are the product of our careful attention to allocating capital to homebuilding projects that generate solid risk-adjusted returns. Increased capital allocations to our long-standing operations in Arizona, Virginia and Maryland, as well as to our relatively new operations in Utah and Florida, enabled us to produce improved fourth quarter results in all of these markets. Significant increases in average selling prices of homes closed and home gross margins contributed to these improvements. As in the 2005 second and third quarters, these fourth quarter gross margin increases were offset by the impact of easing home gross margins in Nevada from last year’s extraordinary levels.

     “Home gross margins in the 2005 fourth quarter were impacted negatively relative to the 2005 third quarter and the 2004 fourth quarter by the greater mix of homes closed in California, where our average selling prices were 50% above the Company average and our home gross margins were below the Company average. Notwithstanding our lower home gross margins, our 2005 fourth quarter homebuilding operating margins were higher than margins in both the 2005 third quarter and the 2004 fourth quarter. Lower selling, general and administrative expenses as a percentage of revenues, resulting from the increased revenue production in most of our long-standing and newer markets, was the primary driver of these improved operating margins.”

     Reece continued, “Although the number of our 2005 fourth quarter home orders received was lower than orders received in the same 2004 period, the estimated sales value of our 2005 fourth quarter orders was 9% higher, resulting from the 21% increase in the average selling price

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M.D.C. HOLDINGS, INC.
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of home orders, compared with the year ago average price. Average home order prices rose year-over-year in almost all of our markets, with the most significant increases in Arizona, Nevada, Maryland and Florida. The extraordinary home price increases experienced in several of our markets over the past two years have moderated to more normalized levels. Nevertheless, we believe that the overall demand for new homes in most of our markets remains strong, as evidenced by the year-over-year increase in the sales value of our home orders.”

     Reece concluded, “Consistent with our commitment to create long-term value for our shareowners, we are reallocating capital from Texas to investment opportunities in other markets where we expect to generate higher risk-adjusted returns for our Company. We are continuing to build on or sell the lots we control in Texas, which we anticipate we will complete by the fall of 2006. However, we currently have no plans to enter into new contracts for the acquisition of additional land in this market. ”

Improved Financial Services Results

     Operating profits from the Company’s financial services business for the quarter and year ended December 31, 2005, increased to $11.5 million and $24.7 million, respectively, compared with $5.1 million and $18.5 million for the same periods in 2004. The increases in profits for both periods primarily were due to increases in loan origination fees earned in conjunction with record levels of mortgage loans originated. The 2005 fourth quarter also benefited from higher gains on sales of mortgage loans and loan servicing, compared with the same period in 2004.

Combination of Units Release With Earnings Release Beginning in the 2006 First Quarter

     Beginning in the first quarter of 2006, MDC will combine its announcement of quarterly home orders, home closings and backlog with the release of its quarterly earnings in an effort to provide more detailed information when releasing its quarterly results. In addition, this approach should enable the Company to provide a broader picture of its operating results and the overall trends in the market for new homes on a quarterly basis.

     MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the largest homebuilders in the United States. The Company also provides mortgage financing, primarily for MDC’s homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC is a major regional homebuilder with a significant presence in some of the country’s best housing markets. The Company is the largest homebuilder in Colorado; among the top five homebuilders in Northern Virginia, suburban Maryland, Phoenix, Tucson, Las Vegas, Jacksonville and Salt Lake City; and among the top ten

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M.D.C. HOLDINGS, INC.
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homebuilders in Northern California and Southern California. MDC also has established operating divisions in West Florida, Philadelphia/Delaware Valley, Chicago, Dallas/Fort Worth and Houston. For more information about our Company, please visit www.richmondamerican.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding future home closings, revenues and earnings, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the 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 factors include, among other things, (1) general economic and business conditions; (2) interest rate changes; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of performance bonds and insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control. Additional information about the risks and uncertainties applicable to the Company’s business is contained in the Company’s Form 10-K for the year ended December 31, 2004, which was filed with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

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M.D.C. HOLDINGS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
REVENUES
Homebuilding	$	1,713,910		$	1,328,019		$	4,820,638		$	3,951,644
Financial Services		22,154			15,588			62,035			56,610
Corporate		28			249			1,487			818
Total Revenues	$	1,736,092		$	1,343,856		$	4,884,160		$	4,009,072
OPERATING PROFITS
Homebuilding	$	337,791		$	260,176		$	902,576		$	719,197
Financial Services		11,492			5,108			24,730			18,483
Operating Profit		349,283			265,284			927,306			737,680
Corporate general and administrative expense, net		(33,752	)		(33,344	)		(118,543	)		(100,766	)
Income before income taxes		315,531			231,940			808,763			636,914
Provision for income taxes		(118,052	)		(89,317	)		(303,040	)		(245,749	)
Net Income	$	197,479		$	142,623		$	505,723		$	391,165
EARNINGS PER SHARE
Basic	$	4.43		$	3.31		$	11.48		$	9.19
Diluted	$	4.29		$	3.17		$	10.99		$	8.79
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		44,605			43,117			44,046			42,560
Diluted		46,068			44,960			46,036			44,498
DIVIDENDS DECLARED PER SHARE	$	.250		$	.115		$	.760		$	.434

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M.D.C. HOLDINGS, INC.
Information on Business Segments
(In thousands)
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Homebuilding
Home sales	$	1,708,734		$	1,316,913		$	4,802,875		$	3,932,013
Land sales		430			7,059			2,995			8,898
Other revenues		4,746			4,047			14,768			10,733
Total Homebuilding Revenues		1,713,910			1,328,019			4,820,638			3,951,644
Home cost of sales		1,231,976			945,385			3,440,858			2,843,543
Land cost of sales		365			7,467			1,861			8,783
Marketing		77,628			60,864			236,322			198,541
General and administrative		66,150			54,127			239,021			181,580
Total Homebuilding Expenses		1,376,119			1,067,843			3,918,062			3,232,447
Homebuilding Operating Profit		337,791			260,176			902,576			719,197
Financial Services
Interest revenues		772			1,015			2,782			3,838
Origination fees		11,048			7,264			32,476			24,728
Gains on sales of mortgage servicing		1,631			550			4,221			2,093
Gains on sales of mortgage loans, net		7,327			5,752			18,699			22,657
Mortgage servicing and other		1,376			1,007			3,857			3,294
Total Financial Services Revenues		22,154			15,588			62,035			56,610
General and administrative		10,662			10,480			37,305			38,127
Financial Services Operating Profit		11,492			5,108			24,730			18,483
Total Operating Profit		349,283			265,284			927,306			737,680
Corporate
Interest and other revenues		28			249			1,487			818
Other general and administrative expenses		(33,780	)		(33,593	)		(120,030	)		(101,584	)
Income Before Income Taxes	$	315,531		$	231,940		$	808,763		$	636,914

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands, except per share amounts)
(Unaudited)

	December 31,			December 31,			December 31,
	2005			2004			2003
BALANCE SHEET DATA
Stockholders’ Equity Per Share Outstanding	$	43.74		$	32.80		$	24.06
Stockholders’ Equity	$	1,952,109		$	1,418,821		$	1,015,920
Homebuilding and Corporate Debt		996,297			746,310			500,179
Total Capital (excluding mortgage lending debt)	$	2,948,406		$	2,165,131		$	1,516,099
Cash and Cash Equivalents	$	221,273		$	408,150		$	173,565
Unrestricted Cash and Available Borrowing Capacity Under Lines of Credit	$	1,231,340		$	1,050,954		$	779,407
Ratio of Homebuilding and Corporate Debt to Equity		.51			.53			.49
Ratio of Homebuilding and Corporate Debt to Capital		.34			.34			.33
Ratio of Homebuilding and Corporate Debt to Capital (net of cash)		.28			.19			.24
Housing Completed or Under Construction Inventories	$	1,266,901		$	851,628		$	732,744
Land and Land Under Development Inventories	$	1,656,198		$	1,109,953		$	763,569
Corporate and Homebuilding Interest Capitalized Interest Capitalized in Inventories at Beginning of Year	$	24,220		$	20,043		$	17,783
Interest Incurred During the Year		51,872			32,879			26,779
Interest in Home and Land Cost of Sales for the Year		(34,093	)		(28,702	)		(24,519	)
Interest Capitalized in Inventories at End of Year	$	41,999		$	24,220		$	20,043
Interest Capitalized as a Percent of Inventories		1.4	%		1.2	%		1.3	%

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
OPERATING DATA
Interest in Home Cost of Sales as a Percent of Home Sales Revenues		0.7	%		0.6	%		0.7	%		0.7	%
Homebuilding and Corporate SG&A as a Percent of Home Sales Revenues		10.4	%		11.3	%		12.4	%		12.3	%
Depreciation and Amortization	$	19,907		$	13,150		$	54,425		$	41,906
Home Gross Margins		27.9	%		28.2	%		28.4	%		27.7	%
Cash Provided by (Used in) Operating Activities	$	128,498		$	170,368		$	(425,378	)	$	(23,864	)
Cash Provided by (Used in) Investing Activities	$	(4,771	)	$	(2,834	)	$	(22,889	)	$	(29,917	)
Cash Provided by (Used in) Financing Activities	$	(32,575	)	$	187,533		$	261,390		$	288,366
After-Tax Return on Revenues		11.4	%		10.6	%		10.4	%		9.8	%
After-Tax Return on Average Assets		N/A			N/A			15.8	%		17.0	%
After-Tax Return on Average Equity		N/A			N/A			30.6	%		33.0	%

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands, except per share amounts)
(Unaudited)

	Year Ended December 31,
	2005			2004			2003			2002			2001
FIVE-YEAR TRENDS
Total Revenues	$	4,884,160		$	4,009,072		$	2,920,070		$	2,318,524		$	2,125,874
Year-Over-Year Increase		21.8	%		37.3	%		25.9	%		9.1	%		21.4	%
Net Income	$	505,723		$	391,165		$	212,229		$	167,305		$	155,715
Year-Over-Year Increase		29.3	%		84.3	%		26.9	%		7.4	%		26.3	%
Diluted Earnings Per Share	$	10.99		$	8.79		$	4.90		$	3.83		$	3.64
Year-Over-Year Increase		25.0	%		79.4	%		27.9	%		5.2	%		23.4	%
After-Tax Return on Revenues		10.4	%		9.8	%		7.3	%		7.2	%		7.3	%
After-Tax Return on Average Assets		15.8	%		17.0	%		12.1	%		12.0	%		13.3	%
After-Tax Return on Average Equity		30.6	%		33.0	%		24.0	%		23.0	%		27.4	%

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	December 31,		December 31,		December 31,
	2005		2004		2003
LOTS OWNED AND CONTROLLED
Lots Owned		23,445		20,760		16,351
Lots Under Option		18,819		21,164		12,251
Homes Under Construction (including models)		6,891		5,573		4,754
LOTS OWNED AND CONTROLLED BY MARKET
(excluding homes under construction)
Arizona		11,035		11,151		5,258
California		5,372		4,428		3,512
Colorado		5,837		5,859		5,206
Florida		4,403		3,574		875
Illinois		616		711		- -
Maryland		1,852		1,856		1,767
Nevada		5,455		5,775		5,359
Philadelphia/Delaware Valley		1,754		1,035		- -
Texas		551		2,336		2,203
Utah		1,382		1,078		1,220
Virginia		4,007		4,121		3,202
Total Company		42,264		41,924		28,602
ACTIVE SUBDIVISIONS
Arizona		54		32		38
California		34		22		26
Colorado		57		53		49
Florida		19		18		9
Illinois		8		1		- -
Maryland		11		11		9
Nevada		43		31		17
Philadelphia/Delaware Valley		7		2		- -
Texas		21		24		11
Utah		18		22		11
Virginia		20		26		28
Total Company		292		242		198
Average for Quarter Ended		287		237		200

	Three Months Ended				Year Ended
	December 31,				December 31,
	2005		2004		2005		2004
AVERAGE SELLING PRICE PER HOME CLOSED
Arizona	$	255.0	$	194.0	$	227.2	$	192.7
California		517.5		534.3		512.6		459.5
Colorado		288.0		266.6		286.3		265.3
Florida		268.2		182.0		219.9		180.6
Illinois		357.2		496.9		389.4		496.9
Maryland		528.8		448.1		482.8		419.6
Nevada		318.2		279.6		305.8		247.2
Philadelphia/Delaware Valley		379.4		- -		369.6		- -
Texas		165.7		156.9		160.6		157.7
Utah		244.4		199.0		226.4		184.7
Virginia		577.0		450.4		527.1		436.8
Company Average	$	345.1	$	304.6	$	313.8	$	283.4

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Orders for Homes, net (units)
Arizona		587			962			3,627			4,066
California		323			270			2,060			2,034
Colorado		348			465			2,075			2,276
Florida		127			154			1,044			446
Illinois		35			12			148			20
Maryland		58			86			423			341
Nevada		505			185			3,293			2,596
Philadelphia/Delaware Valley		35			22			191			23
Texas		109			160			781			807
Utah		212			180			953			753
Virginia		66			166			739			886
Total		2,405			2,662			15,334			14,248
Estimated Value of Orders for Homes, net	$	830,000		$	760,000
Estimated Average Selling Price of Orders for Homes, net	$	345.1		$	285.5
Order Cancellation Rate		33.8	%		32.0	%		23.7	%		25.3	%
Homes Closed (units)
Arizona		1,121			913			3,671			3,256
California		864			704			2,102			2,346
Colorado		575			715			2,190			2,318
Florida		251			201			1,083			452
Illinois		46			2			86			2
Maryland		137			134			397			385
Nevada		1,165			849			3,016			2,736
Philadelphia/Delaware Valley		15			- -			33			- -
Texas		183			254			799			694
Utah		264			199			904			615
Virginia		330			352			1,026			1,072
Total		4,951			4,323			15,307			13,876

Backlog (units)	December 31,		December 31,
	2005		2004
Arizona		2,099		2,143
California		765		807
Colorado		577		692
Florida		599		638
Illinois		80		18
Maryland		251		225
Nevada		1,023		746
Philadelphia/Delaware Valley		181		23
Texas		238		256
Utah		338		289
Virginia		381		668
Total		6,532		6,505
Backlog Estimated Sales Value	$	2,440,000	$	1,920,000
Estimated Average Selling Price of Homes in Backlog	$	373.5	$	295.2

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