exv99w1

Exhibit 99.1

NEWS BULLETIN





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

FOR IMMEDIATE RELEASE
THURSDAY, APRIL 24, 2008


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

M.D.C. HOLDINGS ANNOUNCES FIRST QUARTER 2008 RESULTS

	•		Cash flow from operations of $230.7 million

	•		Quarter-end cash of $1.19 billion; no borrowings on homebuilding line of credit

	•		Ending cash and available borrowing capacity of $2.43 billion

	•		Pre-tax loss of $77.2 million; includes asset impairments and project cost write-offs of $56.5 million

	•		Net loss of $72.8 million vs. $94.4 million in 2007

	•		Diluted loss per share of $1.58 vs. $2.07 in 2007

	•		Total revenue of $406.1 million vs. $745.1 million in 2007

	•		Closed 1,136 homes at an average selling price of $313,200

	•		Net orders for 1,098 homes with an estimated value of $324.0 million

DENVER, Thursday, April 24, 2008 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended March 31, 2008 of $72.8 million, or $1.58 per diluted share, which included pre-tax charges of $54.8 million for asset impairments and $1.7 million for write-offs of deposits and pre-acquisition costs associated with land option contracts the Company does not intend to pursue. This 2008 first quarter net loss also was impacted adversely by a significant decline in our effective tax rate to 5.7%, compared with 34.3% for the same period in 2007. The decrease in the effective tax rate primarily resulted from the loss of certain manufacturing deduction benefits received in prior years and a $10.6 million increase in the deferred tax asset valuation allowance. The net loss for the first quarter of 2007 was $94.4 million, or $2.07 per diluted share, including pre-tax charges of $141.4 million for asset impairments and $4.0 million for write-offs of option deposits and pre-acquisition costs. Total revenue for the first quarter of 2008 was $406.1 million, compared with revenue of $745.1 million for the same period in 2007.

-more-

M.D.C. HOLDINGS, INC.

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “We remain committed to strengthening our balance sheet and reengineering our business practices as we await a recovery for the homebuilding industry. After generating positive operating cash flow for seven consecutive quarters, including over $230 million in this first quarter, we accumulated $1.2 billion in cash on hand as of March 31, 2008, with no borrowings outstanding on our $1.25 billion line of credit. In addition, we have continued to aggressively manage our exposure to performance bonds and letters of credit related to various land development activities. At the end of the 2008 first quarter, our estimated cost to complete these activities was less than $50 million.”

Mizel continued, “We believe the strength of our balance sheet is established and, therefore, we are comfortable expanding our focus on continued business process improvements in 2008. During the first quarter, we laid the framework for such improvements through a Company-wide initiative to transform and streamline our business practices, with a goal of enhancing efficiency across our Company in preparation for future growth. This initiative is intended to contribute to the long-term value of our Company as we continue to look for opportunities to invest the substantial capital available to us.”

Homebuilding Results

Homebuilding loss before taxes for the quarter ended March 31, 2008 improved to $77.3 million, compared with $138.9 million for the same period in 2007. The improvement in 2008 was driven in large part by a 61% decline in asset impairment charges and a 43% decline in homebuilding commissions, marketing and general and administrative expenses (“SG&A”). These decreases in expenses and charges were offset partially by reductions in home closings, average selling prices and home gross margins from the levels achieved during the same period in 2007.

The Company closed 1,136 homes and produced home gross margins of 11.5% in the 2008 first quarter, compared with 2,001 home closings and home gross margins of 15.8% for the same period in 2007. The average selling price for the 2008 first quarter was $313,200, down $42,500 year-over-year. Homebuilding SG&A decreased to $65.1 million for the three months ended March 31, 2008, compared with $113.3 million for the same period in the prior year.

Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “The $55 million in asset impairments we recognized this quarter was nearly 70% lower than the charge recognized in the 2007 fourth quarter and was our lowest quarterly impairment charge since the third quarter of 2006. We impaired our land inventory by $30 million and our work-in-process inventory and other assets by $25 million, impacting approximately 2,600 lots in 94 subdivisions. The quarter-end book value of the impaired subdivisions after the impairments was $219 million, consisting of $50 million of land and $169 million of work-in-process. As has been the case in each of the last five quarters, the impairments this quarter primarily occurred in our West homebuilding segment, with almost 90% applicable to subdivisions in our Arizona,

-more-

M.D.C. HOLDINGS, INC.

Nevada and California markets. Over the last seven quarters, we have impaired approximately 60% of the 13,100 lots we owned at the end of our 2008 first quarter.”

Reece continued, “We reduced our lots owned, excluding lots with homes completed or under construction, by 13% in the first quarter alone. We accomplished this reduction in large part through the sale of more than 800 lots primarily located in Arizona and California. While these land sales had little impact on our book income for this quarter, they contributed almost $30 million in proceeds and generated a tax loss in excess of $70 million, which should increase the tax refund we expect to receive early next year.”

Reece concluded, “During the 2008 first quarter, our homebuilding general and administrative expenses declined by 47% year-over-year, primarily due to our efforts to right-size our homebuilding operations in 2007. However, despite these successful efforts, we continued to make adjustments to our operating structure throughout the first quarter, and we intend to make further adjustments during the remainder of the year as we streamline our operations. Through our commitment to improving our processes and procedures during this downturn in homebuilding activity, we hope to better leverage our overhead during future periods of growth.”

Financial Services and Other and Corporate Results

Income before taxes from the Company’s Financial Services and Other segment for the quarter ended March 31, 2008 was $4.1 million, compared with $7.5 million for the same period in the previous year. The decrease primarily resulted from lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in conjunction with builder home closings. Also, insurance revenue for the first quarter of 2008 decreased year-over-year due to lower insurance premiums collected from our homebuilding subcontractors as a result of the decline in home construction levels. These decreases were offset partially by year-over-year reductions in financial services general and administrative expenses.

Loss before taxes from the Company’s Corporate segment for the quarter ended March 31, 2008 was $4.1 million, compared with $12.3 million for the same period in the previous year. The improvement primarily resulted from an increase in interest income generated from significantly higher cash balances in 2008 and a year-over-year reduction in compensation-related expenses.

Home Orders and Backlog

MDC received orders, net of cancellations, for 1,098 homes with an estimated sales value of $324.0 million during the 2008 first quarter, compared with net orders for 2,558 homes with an estimated sales value of $902.0 million during the same period in 2007. During the 2008 first quarter, the Company’s approximate order cancellation rate was 43%, compared with a rate of

-more-

M.D.C. HOLDINGS, INC.

35% experienced during the same period in 2007. The Company ended the first quarter of 2008 with a backlog of 1,909 homes with an estimated sales value of $623.0 million, compared with a backlog of 4,195 homes with an estimated sales value of $1.50 billion at March 31, 2007.

Since 1972, MDC has built and financed the American dream for more than 150,000 families. MDC’s commitment to customer satisfaction, quality and value is reflected in each home it builds. As one of the largest homebuilders in the United States, the Company has homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Chicago, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. The Company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, HomeAmerican Mortgage Corporation, American Home Insurance Agency and American Home Title and Escrow, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol “MDC.” For more information, visit http://www.richmondamerican.com.

Forward-Looking Statements

Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, 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 cancellation rates, net home orders, home gross margins, and land and home values; (2) changes in interest rates, mortgage lending programs and the availability of credit; (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) terrorist acts and other acts of war; and (14) 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 Annual Report on Form 10-K for the year ended December 31, 2007, which has been 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 update publicly 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.

-more-

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


	Three Months
	Ended March 31,
	2008			2007
REVENUE

Home sales revenue	$	355,792		$	711,800
Land sales revenue		28,568			6,034
Other revenue		21,785			27,290

Total Revenue		406,145			745,124


COSTS AND EXPENSES

Home cost of sales		315,037			599,199
Land cost of sales		27,949			5,107
Asset impairments		54,832			141,422
Marketing expenses		19,203			29,079
Commission expenses		13,433			23,250
General and administrative expenses		52,912			90,657
Related party expenses		5			91

Total Costs and Expenses		483,371			888,805


Loss before income taxes		(77,226	)		(143,681	)
Benefit from income taxes		4,406			49,283


NET LOSS	$	(72,820	)	$	(94,398	)


LOSS PER SHARE
Basic	$	(1.58	)	$	(2.07	)


Diluted	$	(1.58	)	$	(2.07	)


WEIGHTED-AVERAGE SHARES OUTSTANDING

Basic		45,953			45,501


Diluted		45,953			45,501


DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25

-more-

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


	March 31,			December 31,
	2008			2007
ASSETS
Cash and cash equivalents	$	1,193,849		$	1,004,763
Restricted cash		1,936			1,898
Receivables
Home sales receivables		29,174			33,647
Income taxes receivable, net		—			36,988
Other receivables		15,596			16,796
Mortgage loans held for sale, net		56,630			100,144
Inventories, net
Housing completed or under construction		778,281			902,221
Land and land under development		470,522			554,336
Property and equipment, net		41,972			44,368
Deferred income taxes, net		125,208			160,565
Related party assets		28,627			28,627
Prepaid expenses and other assets, net		65,404			71,884


Total Assets	$	2,807,199		$	2,956,237


LIABILITIES
Accounts payable	$	49,388		$	71,932
Accrued liabilities		313,228			339,353
Income taxes payable, net		13,005			—
Related party liabilities		—			1,701
Homebuilding line of credit		—			—
Mortgage line of credit		32,416			70,147
Senior notes, net		997,198			997,091

Total Liabilities		1,405,235			1,480,224


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; 46,389,000 and 46,344,000 issued and outstanding, respectively, at March 31, 2008, and 46,084,000 and 46,053,000 issued and outstanding, respectively, at December 31, 2007		464			461
Additional paid-in-capital		767,324			757,039
Retained earnings		635,504			719,841
Accumulated other comprehensive loss		(669	)		(669	)
Treasury stock, at cost; 45,000 and 31,000 shares at March 31, 2008 and December 31, 2007, respectively		(659	)		(659	)

Total Stockholders’ Equity		1,401,964			1,476,013

Total Liabilities and Stockholders’ Equity	$	2,807,199		$	2,956,237

-more-

M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)


	Three Months
	Ended March 31,
	2008			2007
REVENUE
Homebuilding
West	$	223,506		$	454,654
Mountain		70,495			145,191
East		54,091			61,355
Other Homebuilding		40,354			64,860

Total Homebuilding		388,446			726,060

Financial Services and Other		11,172			19,570
Corporate		9,368			5,433
Inter-company adjustments		(2,841	)		(5,939	)

Consolidated	$	406,145		$	745,124


(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	(61,391	)	$	(125,391	)
Mountain		(11,608	)		10,971
East		(2,335	)		(4,386	)
Other Homebuilding		(1,940	)		(20,131	)

Total Homebuilding		(77,274	)		(138,937	)
Financial Services and Other		4,148			7,517
Corporate		(4,100	)		(12,261	)

Consolidated	$	(77,226	)	$	(143,681	)


ASSET IMPAIRMENTS
West	$	48,310		$	121,903
Mountain		3,954			654
East		1,533			2,567
Other Homebuilding		1,035			16,298

Consolidated	$	54,832		$	141,422


	March 31,			December 31,
	2008			2007
TOTAL ASSETS
Homebuilding
West	$	605,268		$	747,835
Mountain		450,492			474,203
East		215,056			250,658
Other Homebuilding		107,909			125,003

Total Homebuilding		1,378,725			1,597,699
Financial Services and Other		128,320			174,617
Corporate		1,343,611			1,229,178
Inter-company adjustments		(43,457	)		(45,257	)

Consolidated	$	2,807,199		$	2,956,237

-more-

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


	Three Months
	Ended March 31,						Change
	2008			2007			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Segments	$	32,426		$	60,999		$	(28,573	)		-47	%
Financial Services and Other Segment	$	7,023		$	12,058		$	(5,035	)		-42	%
Corporate Segment ⁽¹⁾	$	13,468		$	17,691		$	(4,223	)		-24	%

Total	$	52,917		$	90,748		$	(37,831	)		-42	%


SG&A as a % of Home Sales Revenue
Homebuilding Segments		18.3	%		15.9	%		2.4	%
Corporate Segment ⁽¹⁾		3.8	%		2.5	%		1.3	%

Depreciation and Amortization	$	8,612		$	11,820		$	(3,208	)		-27	%

Home Gross Margins ⁽²⁾		11.5	%		15.8	%		-4.3	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		4.4	%		1.9	%		2.5	%

Cash Provided by Operating Activities	$	230,733		$	149,323		$	81,410			55	%
Cash Used in Investing Activities	$	(43	)	$	(710	)	$	667			-94	%
Cash Used in Financing Activities	$	(41,604	)	$	(25,879	)	$	(15,725	)		61	%

Ending Unrestricted Cash and Available Borrowing Capacity	$	2,430,471		$	1,868,783		$	561,688			30	%

Corporate and Homebuilding Interest
Interest Capitalized During the Period	$	14,453		$	14,441		$	12			0	%
Previously capitalized interest included in home cost of sales during the period	$	15,773		$	13,285		$	2,488			19	%
Interest Capitalized in Inventories at End of Period	$	52,167		$	51,811		$	356			1	%


⁽¹⁾		Includes related party expenses.

⁽²⁾		Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue. During the three months ended March 31, 2008, we closed homes on lots for which we had previously recorded $49.9 million of asset impairments. During the three months ended March 31, 2007, we closed homes on lots for which we had previously recorded $9.2 million of asset impairments.

-more-

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


	Three Months
	Ended March 31,						Change
	2008			2007			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans originated	$	164,743		$	351,033		$	(186,290	)		-53	%
Principal amount of mortgage loans brokered	$	59,571		$	118,342		$	(58,771	)		-50	%
Capture Rate		61	%		58	%		3	%
Including brokered loans		79	%		77	%		2	%
Mortgage products (% of mortgage loans originated)
Fixed rate		94	%		69	%		25	%
Adjustable rate — interest only		2	%		27	%		-25	%
Adjustable rate — other		4	%		4	%		0	%
Prime loans ⁽³⁾		63	%		59	%		4	%
Alt A loans ⁽⁴⁾		0	%		35	%		-35	%
Government loans ⁽⁵⁾		37	%		5	%		32	%
Sub-prime loans ⁽⁶⁾		0	%		1	%		-1	%


⁽³⁾		Prime loans are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply with the documentation standards of the government sponsored enterprise guidelines.

⁽⁴⁾		Alt-A loans are defined as loans that would otherwise qualify as prime loans except that they do not comply with the documentation standards of the government sponsored enterprise guidelines.

⁽⁵⁾		Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.

⁽⁶⁾		Sub-prime loans are loans that have FICO scores of less than or equal to 620.

-more-

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


	March 31,		December 31,		March 31,
	2008		2007		2007
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction — Final		449		515		422
Unsold Home Under Construction — Frame		516		656		480
Unsold Home Under Construction — Foundation		134		229		310

Total Unsold Homes Under Construction		1,099		1,400		1,212
Sold Homes Under Construction		1,340		1,350		2,677
Model Homes		640		730		792

Homes Completed or Under Construction		3,079		3,480		4,681


LOTS OWNED (excluding homes completed or under construction)
Arizona		2,423		2,969		5,701
California		1,150		1,491		2,508
Nevada		1,241		1,549		2,416

West		4,814		6,009		10,625


Colorado		2,890		2,992		3,274
Utah		830		863		987

Mountain		3,720		3,855		4,261


Maryland		287		302		492
Virginia		336		369		600

East		623		671		1,092


Delaware Valley		138		151		261
Florida		561		638		1,033
Illinois		165		191		268

Other Homebuilding		864		980		1,562


Total		10,021		11,515		17,540

-more-

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


	March 31,		December 31,		March 31,
	2008		2007		2007
LOTS CONTROLLED UNDER OPTION
Arizona		400		512		575
California		157		157		157
Nevada		—		4		117

West		557		673		849


Colorado		255		262		931
Utah		—		—		91

Mountain		255		262		1,022


Maryland		449		558		992
Virginia		1,072		1,311		2,148

East		1,521		1,869		3,140


Delaware Valley		327		327		644
Florida		470		484		1,436
Illinois		—		—		—

Other Homebuilding		797		811		2,080


Total		3,130		3,615		7,091


NON-REFUNDABLE OPTION DEPOSITS
Cash	$	6,476	$	6,292	$	15,649
Letters of Credit		4,221		6,547		14,422

Total Non-Refundable Option Deposits	$	10,697	$	12,839	$	30,071

-more-

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


	Three Months
	Ended March 31,				Change
	2008		2007		Amount			%
HOMES CLOSED (UNITS)
Arizona		351		652		(301	)		-46	%
California		154		328		(174	)		-53	%
Nevada		180		313		(133	)		-42	%

West		685		1,293		(608	)		-47	%


Colorado		117		164		(47	)		-29	%
Utah		82		228		(146	)		-64	%

Mountain		199		392		(193	)		-49	%


Maryland		49		49		—			0	%
Virginia		65		68		(3	)		-4	%

East		114		117		(3	)		-3	%


Delaware Valley		31		46		(15	)		-33	%
Florida		95		128		(33	)		-26	%
Illinois		12		14		(2	)		-14	%
Texas		—		11		(11	)		-100	%

Other Homebuilding		138		199		(61	)		-31	%


Total		1,136		2,001		(865	)		-43	%


AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	232.2	$	262.5	$	(30.3	)		-12	%
California		444.6		540.0		(95.4	)		-18	%
Colorado		354.4		352.5		1.9			1	%
Delaware Valley		425.8		489.6		(63.8	)		-13	%
Florida		233.4		280.9		(47.5	)		-17	%
Illinois		400.5		311.3		89.2			29	%
Maryland		496.9		530.8		(33.9	)		-6	%
Nevada		247.3		305.3		(58.0	)		-19	%
Texas		—		135.5		(135.5	)		-100	%
Utah		340.1		350.0		(9.9	)		-3	%
Virginia		453.5		492.0		(38.5	)		-8	%
Company Average	$	313.2	$	355.7	$	(42.5	)		-12	%

-more-

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


	Three Months
	Ended March 31,						Change
	2008			2007			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		282			754			(472	)		-63	%
California		159			415			(256	)		-62	%
Nevada		181			380			(199	)		-52	%

West		622			1,549			(927	)		-60	%


Colorado		163			300			(137	)		-46	%
Utah		44			210			(166	)		-79	%

Mountain		207			510			(303	)		-59	%


Maryland		47			99			(52	)		-53	%
Virginia		70			112			(42	)		-38	%

East		117			211			(94	)		-45	%


Delaware Valley		22			62			(40	)		-65	%
Florida		115			179			(64	)		-36	%
Illinois		15			41			(26	)		-63	%
Texas		—			6			(6	)		-100	%

Other Homebuilding		152			288			(136	)		-47	%

Total		1,098			2,558			(1,460	)		-57	%


Estimated Value of Orders for Homes, net	$	324,000		$	902,000		$	(578,000	)		-64	%
Estimated Average Selling Price of Orders for Homes, net	$	295.1		$	352.6		$	(57.5	)		-16	%
Cancellation Rate⁽⁷⁾		43	%		35	%		8	%


⁽⁷⁾		We define “Cancellation Rate” as the approximate number of cancelled home order contracts during a reporting period as a percent of total home orders received during such reporting period.

-more-

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


	March 31,		December 31,		March 31,
	2008		2007		2007
BACKLOG (UNITS)
Arizona		523		592		1,606
California		208		203		514
Nevada		308		307		382

West		1,039		1,102		2,502


Colorado		259		213		389
Utah		140		178		447

Mountain		399		391		836


Maryland		124		126		237
Virginia		105		100		180

East		229		226		417


Delaware Valley		48		57		135
Florida		145		125		248
Illinois		49		46		50
Texas		—		—		7

Other Homebuilding		242		228		440


Total		1,909		1,947		4,195


Backlog Estimated Sales Value	$	623,000	$	650,000	$	1,500,000

Estimated Average Selling Price of Homes in Backlog	$	326.3	$	333.8	$	357.6


ACTIVE SUBDIVISIONS
Arizona		62		66		70
California		34		41		47
Nevada		34		39		45

West		130		146		162


Colorado		49		47		49
Utah		24		23		26

Mountain		73		70		75


Maryland		17		15		18
Virginia		19		18		22

East		36		33		40


Delaware Valley		2		4		4
Florida		15		20		28
Illinois		4		5		6

Other Homebuilding		21		29		38


Total		260		278		315

Average for quarter ended		272		287		311

-more-

M.D.C. HOLDINGS, INC.
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)


	March 31,			December 31,			March 31,
	2008			2007			2007
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH
Total Debt	$	1,029,614		$	1,067,238		$	1,097,485
Less Mortgage Line of Credit		(32,416	)		(70,147	)		(100,703	)

Total Corporate and Homebuilding Debt		997,198			997,091			996,782
Less Cash (Including Restricted Cash)		(1,195,785	)		(1,006,661	)		(633,227	)

Total Corporate and Homebuilding Debt, Net of Cash		(198,587	)		(9,570	)		363,555
Stockholders’ Equity		1,401,964			1,476,013			2,079,410

Total Corporate and Homebuilding Capital, Net of Cash	$	1,203,377		$	1,466,443		$	2,442,965

Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash		(0.17	)		(0.01	)		0.15

NOTE: From time to time, MDC discloses selected non-GAAP financial measures. While non-GAAP financial measures are not a substitute for the comparable GAAP measures, we believe that certain non-GAAP information is useful to investors and management in comparing current results to historical periods and to competitor results, and that it provides additional information on the performance of MDC’s businesses. The above is a presentation of and reconciliation of a selected non-GAAP measure with the most directly comparable GAAP financial measure.

“Ratio of corporate and homebuilding debt to capital, net of cash” is a non-GAAP financial measure. MDC’s management and investors use this ratio to help assess the risk associated with debt in the Company’s capital structure. It excludes debt incurred under MDC’s mortgage line of credit from both the numerator and denominator, as this debt is directly collateralized by mortgage loans held in inventory, which are typically liquidated within 60 days of origination, thereby reducing the risk associated with this type of debt. The ratio’s numerator and denominator are also reduced by MDC’s cash position, as this balance could be used to reduce MDC’s exposure to debt outstanding.

-###-