Exhibit 99.1

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
THURSDAY, JULY 20, 2006

Contacts:	Paris G. Reece III	Robert N. Martin	Alison Schuller
	Chief Financial Officer	Investor Relations	Corporate Communications
	(303) 804-7706	(720) 977-3431	(720) 977-3554
	greece@mdch.com	bob.martin@mdch.com	alison.schuller@mdch.com

M.D.C. HOLDINGS ANNOUNCES SECOND QUARTER EARNINGS;
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG

• Diluted earnings per share of $1.66 vs. $2.25 in 2005

• Net income of $76.5 million, compared with $102.6 million in 2005

• 2006 second quarter total revenues of $1.23 billion; $1.05 billion in 2005

• Closed 3,376 homes at an average selling price of $354,000

• Financial services profits of $10.2 million vs. $4.1 million in 2005

• Net orders for 2,738 homes valued at $914.0 million

• Quarter-end backlog of 6,496 homes valued at $2.44 billion

• Unrestricted cash and available borrowing capacity of $1.31 billion

     DENVER, Thursday, July 20, 2006 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the quarter ended June 30, 2006 of $76.5 million, or $1.66 per diluted share, compared with net income of $102.6 million, or $2.25 per diluted share, for the same period in 2005. Total revenue for the second quarter reached $1.23 billion, compared with revenue of $1.05 billion for the same period in 2005.

     Net income for the six months ended June 30, 2006 was $171.9 million, or $3.74 per diluted share, compared with net income of $187.3 million, or $4.10 per diluted share, for the same period in 2005. Total revenues for the six months ended June 30, 2006 reached $2.38 billion, compared with $1.98 billion for the first six months of 2005.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “During the first six months of 2006, the generally robust demand characteristics of the last several years have given way to an increasingly competitive environment in many of the country’s key markets. Throughout this period, we focused on strengthening our ‘investment grade’ balance sheet and

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M.D.C. HOLDINGS, INC.
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financial position, and preserving our capital. As a result, we maintained our leverage ratios at levels that rank among the best in our industry. And our cash and available borrowing capacity at quarter-end grew to more than $1.3 billion for the first time.”

     Mizel continued, “Due in part to the tightening of our underwriting standards for new land acquisition opportunities, we reduced our investment in land in the second quarter. Our continuing efforts to right-size our portfolio of lots controlled in accordance with current market order absorption rates resulted in a 13% year-to-date reduction in the number of lots we own and control, bringing us closer to our two-year lot supply objective. In addition, as we do every quarter, we evaluated the carrying value of the land positions on our balance sheet and determined that no impairments were required.”

     Mizel concluded, “While the length and severity of the current market adjustment is uncertain, we are hopeful that the fundamental drivers still present in most of our markets will in due course return the homebuilding industry to more healthy levels of demand. Irrespective of the timing of an industry turnaround, we remain committed to our conservative operating model and financial and operational disciplines. The resulting strength of our balance sheet, relatively short supply of lots and substantial cash and borrowing capacity, combined with our continuing efforts to reduce costs and expenses and improve our operating efficiencies, give us flexibility to take advantage of opportunities that may be presented in this challenging environment.”

Homebuilding Results

     Homebuilding operating profits for the quarter and six months ended June 30, 2006 were $133.3 million and $307.0 million, respectively, compared with profits of $187.6 million and $350.1 million for the same periods in 2005. The Company closed 3,376 homes and produced home gross margins of 23.2% in the 2006 second quarter, compared with 3,512 home closings and home gross margins of 28.6% for the comparable period in 2005. For the six months ended June 30, 2006, the Company closed 6,574 homes and produced home gross margins of 25.2%, compared with 6,670 home closings and home gross margins of 28.5% for the six months ended June 30, 2005. Average selling prices reached $354,000 and $352,100, respectively, for the quarter and six months ended June 30, 2006, up $60,800 and $60,300 from the same periods in 2005.

     Homebuilding selling, general and administrative expenses were $148.9 million, or 12.5% of home sales revenue, for the 2006 second quarter, compared with $110.9 million, or 10.8% of home sales revenue, for the 2005 second quarter. For the six months ended June 30, 2006, homebuilding selling, general and administrative expenses were $283.1 million, or 12.2% of home sales revenue, compared with $212.1 million, or 10.9% of home sales revenue, for the same period in 2005.

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     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “As was the case in the prior quarter, we experienced significant year-over-year home gross margin decreases in Nevada and California. Our second quarter home gross margin in Nevada continued a year-long decline from extraordinary levels to a margin much closer to our Company average. Reduced margins in California reflect the impact of increased competition and inventory pressures that have been among the greatest in the country.”

     Reece continued, “A significant portion of the 2006 second quarter decline in home gross margins (120 basis points) and homebuilding profits ($19.4 million) resulted from the net impact of deferring profits related to certain homes closed for which the Company’s mortgage subsidiary originated high loan-to-value loans for our homebuyers and still held the loans in inventory at the end of the quarter. The Company will recognize the deferred profit at the time these mortgages are sold to a third-party purchaser, which occurs generally within 45 days of loan origination.”

     Reece concluded, “Our selling costs increased in the 2006 second quarter primarily due to higher advertising expenses and commissions to outside brokers required in response to the more competitive home selling environment in most of our markets, as well as higher model home costs. General and administrative expenses also rose in the quarter, primarily as a result of a $7.9 million increase in write-offs of project costs, which included option deposits and other costs related to lots that we have chosen not to acquire. In addition, we experienced higher compensation and other employee benefit related costs and supervisory fees charged by our corporate office to our homebuilding segment.”

Improved Financial Services Results

     Operating profits from the Company’s financial services business for the quarter and six months ended June 30, 2006 increased to $10.2 million and $18.5 million, respectively, compared with $4.1 million and $7.0 million, respectively, during the same periods in the previous year. The profit improvements primarily were due to higher gains on sales of mortgage loans, compared with the same periods in 2005. Increased volumes of mortgage loan originations and mortgage loans sold during the 2006 periods drove the higher gains. The Company achieved these increased originations by, among other things, expanding the offering of mortgage loan products that it could originate directly for its customers, thereby decreasing the need for less profitable loans brokered to outside lenders.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 2,738 homes with a sales value of $914.0 million during the 2006 second quarter, compared with net orders for 4,832 homes with a sales value of $1.70 billion during the same period in 2005. For the six months ended June 30, 2006, the Company received net orders for 6,538 homes with a sales value of $2.27 billion, compared

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with 9,378 net orders with a sales value of $3.18 billion for the six months ended June 30, 2005. The Company ended the second quarter of 2006 with a backlog of 6,496 homes, compared with a backlog of 9,213 homes at June 30, 2005. The estimated sales value of backlog at the end of the 2006 second quarter was $2.44 billion, compared with $3.14 billion in estimated sales value of backlog at June 30, 2005.

     Reece stated, “Each of our markets, with the exception of Utah, experienced a year-over-year decline in net home orders, driven in part by a significant increase in our cancellation rate, which rose to 43% from 19% in the second quarter of 2005. Excluding Utah and Texas, all of our markets saw their cancellation rates rise by more than 1,000 basis points from last year’s second quarter, related largely to substantial expansions in the supply of new and previously owned homes available to be purchased in these markets. These increased sources of competition resulted in, among other things, an elevated number of order cancellations from prospective homebuyers who were unable to sell their existing homes in this more competitive sales environment. In addition to the cancellation impact, given the uncertainty in today’s residential real estate market, we believe that many buyers are waiting on the sidelines, choosing to delay home purchases until the market works through this period of transition. We have responded by increasing incentives at a measured pace, with the objective of improving our sales velocity under current market conditions without compromising our commitment to a quality product or our strong financial position.”

     MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2005 revenues. The Company also provides mortgage financing, primarily for MDC’s homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC, a Fortune 500 Company, is a major regional homebuilder with a significant presence in some of the country’s best housing markets, including Colorado, Jacksonville, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Southern California and Tucson. MDC also has established operating divisions in Chicago, Dallas/Fort Worth, Houston, Philadelphia/Delaware Valley, and West Florida. For more information about our Company, please visit RichmondAmerican.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding future home closings, revenue 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, including changes in

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cancellation rates, net home orders, home gross margins, and land and home values; (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 reports on Form 10-K for the year ended December 31, 2005, and Form 10-Q for the quarter ended March 31, 2006, which were 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						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
REVENUE
Homebuilding	$	1,213,037		$	1,033,294		$	2,337,891		$	1,954,624
Financial Services		19,716			12,812			37,124			24,410
Corporate		183			234			615			1,222
Total Revenue		1,232,936			1,046,340			2,375,630			1,980,256
COSTS AND EXPENSES
Homebuilding		1,079,763			845,669			2,030,848			1,604,489
Financial Services		9,480			8,685			18,575			17,436
Corporate		21,332			27,946			49,689			58,262
Related Party Expenses		127			63			1,803			163
Total Costs and Expenses		1,110,702			882,363			2,100,915			1,680,350
Income before income taxes		122,234			163,977			274,715			299,906
Provision for income taxes		(45,743	)		(61,354	)		(102,803	)		(112,652	)
NET INCOME	$	76,491		$	102,623		$	171,912		$	187,254
EARNINGS PER SHARE
Basic	$	1.70		$	2.35		$	3.83		$	4.30
Diluted	$	1.66		$	2.25		$	3.74		$	4.10
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		44,939			43,718			44,880			43,584
Diluted		45,972			45,703			45,967			45,649
DIVIDENDS DECLARED PER SHARE	$	.25		$	.18		$	.50		$	.33

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
HOMEBUILDING
Home sales	$	1,195,083		$	1,029,553		$	2,314,391		$	1,946,384
Land sales		13,639			—			15,476			1,296
Other revenue		4,315			3,741			8,024			6,944
Total Homebuilding Revenue		1,213,037			1,033,294			2,337,891			1,954,624
Home cost of sales		917,414			734,772			1,732,003			1,391,552
Land cost of sales		13,400			—			15,774			790
Marketing expenses		31,568			25,008			60,603			47,326
Commission expenses		37,394			28,680			70,237			54,526
General and administrative expenses		79,987			57,209			152,231			110,295
Total Homebuilding Expenses		1,079,763			845,669			2,030,848			1,604,489
HOMEBUILDING OPERATING PROFIT		133,274			187,625			307,043			350,135
FINANCIAL SERVICES
Net interest income		1,123			728			1,979			1,255
Broker fees		2,343			2,665			4,423			4,833
Gains on sales of mortgage loans, net		15,439			8,748			28,466			16,646
Other revenue		811			671			2,256			1,676
Total Financial Services Revenue		19,716			12,812			37,124			24,410
General and Administrative Expenses		9,480			8,685			18,575			17,436
FINANCIAL SERVICES OPERATING PROFIT		10,236			4,127			18,549			6,974
TOTAL OPERATING PROFIT		143,510			191,752			325,592			357,109
CORPORATE
Interest and other revenue		183			234			615			1,222
Related party expenses		(127	)		(63	)		(1,803	)		(163	)
General and administrative expenses		(21,332	)		(27,946	)		(49,689	)		(58,262	)
INCOME BEFORE INCOME TAXES	$	122,234		$	163,977		$	274,715		$	299,906

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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	June 30,		December 31,
	2006		2005
ASSETS
Corporate
Cash and cash equivalents	$	70,665	$	196,032
Property and equipment, net		29,238		30,660
Deferred income taxes		71,131		54,319
Deferred debt issue costs, net		6,596		6,937
Other assets, net		11,675		10,792
		189,305		298,740
Homebuilding
Cash and cash equivalents		18,851		16,671
Restricted cash		6,855		6,742
Home sales and other accounts receivable		98,629		134,270
Inventories, net
Housing completed or under construction		1,512,009		1,320,106
Land and land under development		1,760,077		1,677,948
Prepaid expenses and other assets, net		131,150		139,529
		3,527,571		3,295,266
Financial Services
Cash and cash equivalents		1,968		1,828
Mortgage loans held in inventory		163,373		237,376
Other assets, net		74,719		26,640
		240,060		265,844
Total Assets	$	3,956,936	$	3,859,850

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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	June 30,			December 31,
	2006			2005
LIABILITIES
Corporate
Accounts payable and accrued liabilities.	$	93,193		$	117,767
Income taxes payable		30,933			102,656
Related party liabilities		—			8,100
Senior notes, net		996,486			996,297
		1,120,612			1,224,820
Homebuilding
Accounts payable		226,433			203,592
Accrued liabilities		301,977			291,827
Line of credit		—			—
		528,410			495,419
Financial Services
Accounts payable and accrued liabilities.		13,518			30,970
Line of credit		168,163			156,532
		181,681			187,502
Total Liabilities		1,830,703			1,907,741
COMMITMENTS AND CONTINGENCIES		—			—
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized; 44,981,000 and 44,967,000 shares issued and outstanding, respectively, at June 30, 2006 and 44,642,000 and 44,630,000 shares issued and outstanding, respectively, at December 31, 2005		450			446
Additional paid-in capital		746,637			722,292
Retained earnings		1,382,427			1,232,971
Unearned restricted stock		(2,000	)		(2,478	)
Accumulated other comprehensive loss		(622	)		(622	)
Less treasury stock, at cost; 14,000 and 12,000 shares, respectively, at June 30, 2006 and December 31, 2005		(659	)		(500	)
Total Stockholders’ Equity		2,126,233			1,952,109
Total Liabilities and Stockholders’ Equity	$	3,956,936		$	3,859,850

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
SELECTED OPERATING DATA
SG&A as a Percent of Home Sales Revenues
Homebuilding		12.5	%		10.8	%		12.2	%		10.9	%
Corporate		1.8	%		2.7	%		2.3	%		3.0	%
Total		14.3	%		13.5	%		14.5	%		13.9	%
Depreciation and Amortization	$	14,881		$	11,592		$	28,509		$	21,586
Home Gross Margins1		23.2	%		28.6	%		25.2	%		28.5	%
Cash Used in Operating Activities	$	(3,828	)	$	(209,711	)	$	(112,271	)	$	(328,044	)
Cash Used in Investing Activities	$	(2,693	)	$	(7,061	)	$	(4,331	)	$	(11,724	)
Cash Provided by (Used in) Financing Activities	$	(67,734	)	$	59,311		$	(6,445	)	$	166
Unrestricted Cash and Available Borrowing Capacity	$	1,311,515		$	1,037,502			N/A			N/A
After-Tax Return on Total Revenue		6.2	%		9.8	%		7.2	%		9.5	%
After-Tax Return on Average Assets2		13.3	%		16.3	%		N/A			N/A
After-Tax Return on Average Equity2		25.8	%		31.2	%		N/A			N/A
Interest in Home Cost of Sales as a Percent of Home Sales Revenue		1.1	%		0.8	%		1.0	%		0.8	%
Corporate and Homebuilding Interest Capitalized
Interest Capitalized in Inventories at Beginning of Period.	$	47,222		$	27,741		$	41,999		$	24,220
Interest Incurred During the Period		15,002			11,110			29,843			21,925
Interest in Home and Land Cost of Sales for the Period.		13,655			8,558			23,273			15,852
Interest Capitalized in Inventories at End of Period		48,569			30,293			48,569			30,293
Interest Capitalized as a Percent of Inventories		1.5	%		1.2	%		N/A			N/A

1	Home sales revenue less home cost of sales (excluding commissions) as a percent of home sales revenue.
2	Based on last twelve months data.

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

	June 30,		December 31,		June 30,
	2006		2005		2005
LOTS OWNED AND CONTROLLED
Lots Owned		22,484		23,445		22,721
Lots Under Option		14,192		18,819		20,327
Homes Completed or Under Construction (including models)		6,874		6,891		7,891
LOTS OWNED AND CONTROLLED BY MARKET
(excluding homes under construction)
Arizona		9,983		11,035		11,763
California		4,901		5,372		4,216
Colorado		5,175		5,837		6,541
Delaware Valley		1,338		1,754		1,586
Florida		3,674		4,403		4,259
Illinois		451		616		771
Maryland		1,714		1,852		1,829
Nevada		4,187		5,455		5,143
Utah		1,712		1,382		1,270
Virginia		3,464		4,007		3,795
Subtotal		36,599		41,713		41,173
Texas		77		551		1,875
Total Company		36,676		42,264		43,048
ACTIVE SUBDIVISIONS
Arizona		61		54		44
California		45		34		31
Colorado		45		57		55
Delaware Valley		7		7		5
Florida		28		19		23
Illinois		7		8		5
Maryland		18		11		14
Nevada		35		43		45
Utah		20		18		17
Virginia		23		20		18
Subtotal		289		271		257
Texas		4		21		25
Total Company		293		292		282
Average for Quarter Ended		300		287		275

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
AVERAGE SELLING PRICE PER HOME CLOSED
Arizona	$	313.6		$	219.5		$	300.0		$	211.7
California		574.5			498.1			552.5			508.4
Colorado		308.3			286.2			302.6			284.6
Delaware Valley		387.5			347.3			398.0			347.3
Florida		293.5			206.4			295.6			196.3
Illinois		374.5			451.6			369.0			439.8
Maryland		573.9			418.2			572.5			420.8
Nevada		320.9			297.7			321.9			293.3
Texas		166.8			158.6			167.9			157.2
Utah		291.5			215.1			277.3			214.2
Virginia		573.3			507.4			584.9			496.3
Company Average	$	354.0		$	293.2		$	352.1		$	291.8
Company Average Without Texas	$	362.8		$	302.9		$	360.6		$	300.4
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
ORDERS FOR HOMES, NET (UNITS)
Arizona		679			1,090			1,598			2,242
California		392			702			936			1,233
Colorado		291			594			742			1,258
Delaware Valley		35			57			74			100
Florida		177			359			449			679
Illinois		18			31			62			60
Maryland		98			131			250			276
Nevada		519			1,209			1,298			1,959
Utah		326			236			665			484
Virginia		113			234			307			577
Subtotal		2,648			4,643			6,381			8,868
Texas		90			189			157			510
Total		2,738			4,832			6,538			9,378
Estimated Value of Orders for Homes, net	$	914,010		$	1,702,759		$	2,274,252		$	3,178,369
Estimated Average Selling Price of Orders for Homes, net	$	333.8		$	352.4		$	347.9		$	338.9
Order Cancellation Rate5		43.2	%		19.3	%		36.7	%		19.8	%

³ Order Cancellation Rate is calculated as total cancelled home order contracts during a specified period of time as a percent of total home orders received during such time period.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2006		2005		2006		2005
HOMES CLOSED (UNITS)
Arizona		843		859		1,621		1,655
California		405		377		869		763
Colorado		421		568		820		1,016
Delaware Valley		41		1		72		1
Florida		255		285		507		580
Illinois		37		16		73		21
Maryland		112		80		186		154
Nevada		738		626		1,413		1,235
Utah		201		233		374		401
Virginia		171		230		348		442
Subtotal		3,224		3,275		6,283		6,268
Texas		152		237		291		402
Total		3,376		3,512		6,574		6,670

	June 30,		December 31,		June 30,
	2006		2005		2005
BACKLOG (UNITS)
Arizona		2,076		2,099		2,730
California		832		765		1,277
Colorado		499		577		934
Delaware Valley		183		181		122
Florida		541		599		737
Illinois		69		80		57
Maryland		315		251		347
Nevada		908		1,023		1,470
Utah		629		338		372
Virginia		340		381		803
Subtotal		6,392		6,294		8,849
Texas		104		238		364
Total		6,496		6,532		9,213
Backlog Est. Sales Value	$	2,440,000	$	2,440,000	$	3,140,000
Estimated Average Selling Price of Homes in Backlog	$	375.6	$	373.5	$	340.8

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