8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: May 17, 2007
(Date of Earliest Event Reported)

KB Home

(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction
of Incorporation) 001-09195
(Commission
File Number) 95-3666267
(I.R.S. Employer
Identification No.)

10990 Wilshire Boulevard, Seventh Floor Los Angeles
(Address of Principal Executive Offices) 90024
(Zip Code)

(310) 231-4000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))

Item 8.01 Other Events.

     On May 17, 2007, KB Home (the “Company”) entered into an exclusivity period based on a final, irrevocable, binding and fully financed offer by PAI Partners (“PAI”) to acquire the Company’s entire 49% ownership interest in its French subsidiary, Kaufman & Broad SA, representing 10,921,954 shares at a price of 55.00 euros per share. On May 17, 2007, the Company issued a press release announcing its entry into the exclusivity period, which is filed herewith as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release dated May 17, 2007 issued by KB Home.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KB Home
Date: May 17, 2007	By:	/s/ Domenico Cecere
		Name:	Domenico Cecere
		Title:	Executive Vice President and Chief Financial Officer

Exhibit Index

Exhibit 99.1.      Press Release dated May 17, 2007 issued by KB Home.

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE For further information contact:
Kelly Masuda, (310) 893-7434
kmasuda@kbhome.com

KB HOME ENTERS INTO AN EXCLUSIVITY PERIOD REGARDING THE SALE OF ITS
FRENCH OPERATIONS

Los Angeles, CA, May 17, 2007— KB Home (NYSE: KBH) announced today that it has entered into an exclusivity period based on a final, irrevocable, binding and fully financed offer by PAI Partners (“PAI”) to acquire its entire 49% ownership interest in its French subsidiary Kaufman & Broad SA representing 10,921,954 shares at a price of 55.00 euros per share. Total cash proceeds from the sale, at current exchange rates, would exceed $800 million. PAI’s all cash offer is binding but remains subject to customary terms and conditions including regulatory approval. The transaction could close in the third quarter of 2007.

“After a thorough review of various strategic alternatives with respect to its French operations, which included conducting a competitive bidding process launched earlier this year, KB Home and its board of directors believe the proposed transaction would be in the best interest of its shareholders. The sale would further KB Home’s focus on its core homebuilding operations in the U.S. where long-term prospects are excellent,” said Jeffrey Mezger, KB Home’s president and chief executive officer.

About KB Home
Celebrating its 50th anniversary in the homebuilding industry, KB Home is one of America’s largest homebuilders. Headquartered in Los Angeles, the Company has domestic operating divisions in 15 states, building communities from coast to coast. KB Home is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol “KBH.” For more information about any of KB Home’s new home communities or complete mortgage services through Countrywide KB Home Loans, call 888-KB-HOMES or visit www.kbhome.com.

—more—

About Kaufman & Broad SA
For nearly 40 years, Kaufman & Broad SA has been designing, building and selling single-family homes and apartments, as well as office properties on behalf of third parties. Its size, profitability and strong brand name have made Kaufman & Broad SA, publicly traded on Euronext Paris, one of France’s leading developers and builders of homes. For further information on Kaufman & Broad SA, visit www.ketb.com.

Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to: general economic and business conditions; material prices and availability; labor costs and availability; changes in interest rates; our debt level; declines in consumer confidence; increases in competition; changes in currency exchange rates (insofar as they affect our operations in France); weather conditions, significant natural disasters and other environmental factors; government regulations; the availability and cost of land in desirable areas; violations of our policies; the consequences of our past stock option grant practices and the restatement of certain of our financial statements; government investigations and shareholder lawsuits regarding our past stock option grant practices; other legal or regulatory proceedings or claims; conditions in the capital, credit and homebuilding markets; and other events outside of our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.

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