Exhibit 99
News Release	The Ryland Group, Inc. www.ryland.com

FOR IMMEDIATE RELEASE	CONTACT:	Drew Mackintosh, Director, Finance
		Investor Relations	(818) 223-7548
		Marya Jones, Director, Communications
		Media Relations	(818) 223-7591

RYLAND REPORTS DILUTED EPS OF $2.03 FOR THE SECOND QUARTER

CALABASAS, Calif. (July 19, 2006) – The Ryland Group, Inc. (NYSE: RYL), today announced results for its second quarter ended June 30, 2006.  Highlights included:

·Diluted earnings of $2.03 per share for the quarter ended June 30, 2006, representing a decrease of 3.3 percent compared to the same period in the prior year;

·Consolidated revenues of $1.2 billion for the quarter ended June 30, 2006, an increase of 3.2 percent;

·Gross profit margins from home sales of 23.2 percent for the quarter ended June 30, 2006, compared to 24.5 percent for the quarter ended June 30, 2005;

·Closings of 3,803 for the quarter ended June 30, 2006, reflecting a decrease of 5.8 percent compared to the same period in the prior year;

·Average closing price for the quarter ended June 30, 2006, increased 8.5 percent to $295,000 from $272,000 for the same period in 2005;

·New order units in the second quarter of 2006 decreased 39.4 percent to 3,023 units from 4,988 units for the same period in 2005;

·Raised $250.0 million at 6.9 percent in May to replace $250.0 million of higher-rate debt in the third quarter of 2006;

·Shares of the Company’s common stock repurchased during the second quarter of 2006 totaled 1,815,000, or 3.9 percent of its weighted-average shares outstanding; and

·Anticipated diluted earnings per share for fiscal year 2006 is projected to be between $7.75 and $8.25 per share.

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RYLAND SECOND-QUARTER RESULTS

RESULTS FOR SECOND QUARTER 2006

The Company’s consolidated net earnings decreased 9.1 percent for the quarter ended June 30, 2006, to $94.8 million, or $2.03 per diluted share, compared to $104.3 million, or $2.10 per diluted share, for the same period in 2005.

The homebuilding segment reported pretax earnings of $157.6 million during the second quarter of 2006, representing an 8.3 percent decline, compared to $171.9 million in pretax earnings reported for the same period in 2005.  The decrease from the prior year was primarily due to a decline in margins.

Homebuilding revenues rose $39.1 million, or 3.4 percent, to $1.2 billion for the second quarter of 2006, compared to $1.1 billion for the same period in 2005.  This was primarily attributable to an 8.5 percent increase in the average closing price of a home, which rose to $295,000 for the quarter ended June 30, 2006, from $272,000 for the quarter ended June 30, 2005.  Homebuilding revenues for the second quarter of 2006 included $29.2 million from land sales, compared to $38.2 million from land sales for the second quarter of 2005, which contributed net gains of $10.0 million and $13.6 million to pretax earnings in 2006 and 2005, respectively.  Also included in revenues is $9.2 million of other income recognized in the second quarter of 2006 resulting from the termination of a $150.0 million treasury lock at 4.1 percent and a $100.0 million treasury lock at 4.2 percent.

For the second quarter of 2006, new order dollars decreased 40.0 percent to $890.9 million from $1,484.7 million in the second quarter of 2005.  New orders of 3,023 units for the second quarter ended June 30, 2006, represented a decrease of 39.4 percent, compared to new orders of 4,988 units for the same period in 2005.  The dollar value of the Company’s backlog at June 30, 2006, was $2.5 billion, a decrease of 17.8 percent from June 30, 2005.  Backlog units at the end of the second quarter of 2006 decreased 22.6 percent to 8,151 from 10,534 at the end of the second quarter of 2005.

Gross profit margins from home sales averaged 23.2 percent for the second quarter of 2006, compared to 24.5 percent for the same period in 2005.  Total gross profit margins, including land sales, decreased to 23.4 percent in the second quarter of 2006 from 24.9 percent during the second quarter of 2005.  This decrease was primarily due to inventory write-downs totaling $20.0 million and increased sales discounts during the second quarter of 2006.  Selling, general and administrative expenses, as a percentage of revenue, were 10.0 percent for the second quarter of 2006, versus 9.7 percent for the same period in 2005.  This increase was primarily attributable to a rise in sales and marketing expenses.  The homebuilding segment capitalized all interest incurred during the second quarter of 2006 due to development activity.  The pretax homebuilding margin was 13.4 percent for the second quarter of 2006, compared to 15.1 percent for the second quarter of 2005.

Corporate expenses were $20.6 million for the second quarter of 2006, compared to $19.9 million for the same period in the prior year.  Excluding stock option expense required by a change in accounting guidance, corporate expenses were $17.1 million, a decline of $2.8 million.  The decrease was due to lower executive compensation expense resulting from lower earnings and a decline in stock price.

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RYLAND SECOND-QUARTER RESULTS

The Company’s financial services segment, which includes mortgage, title, escrow and insurance services, reported pretax earnings of $14.7 million for the second quarter of 2006, compared to pretax earnings of $16.2 million for the same period in 2005.  This decrease was primarily due to a 4.4 percent decline in loans originated and to higher incentives resulting from a more competitive marketplace.  The capture rate of mortgages originated for the Company’s homebuilding customers was 82.5 percent for the second quarter of 2006 and 82.9 percent for the second quarter of 2005.

RESULTS FOR THE FIRST HALF OF 2006

Consolidated net earnings for the six months ended June 30, 2006, increased 10.6 percent to a record $184.8 million, or $3.88 per diluted share, from $167.1 million, or $3.35 per diluted share, for the six months ended June 30, 2005.

The Company’s homebuilding segment reported pretax earnings of $306.5 million for the six months ended June 30, 2006, compared to $279.2 million for the same period in the prior year, representing an increase of 9.8 percent.  Homebuilding revenues rose $236.6 million, or 11.9 percent, to $2.2 billion for the six months ended June 30, 2006, compared to $2.0 billion for the same period in 2005.  Homebuilding revenues for the six months ended June 30, 2006, included $33.9 million from land sales, compared to $46.6 million from land sales for the six months ended June 30, 2005, contributing net gains of $11.4 million and $14.2 million to pretax earnings, respectively. The Company closed 7,357 homes during the six months ended June 30, 2006, representing the highest number of mid-year closings in its history and an increase of 2.5 percent over the prior year.  New order dollars decreased 28.6 percent to $2.1 billion for the six months ended June 30, 2006, from $2.9 billion for the same period in 2005.  New orders decreased 30.2 percent to 7,044 units for the six months ended June 30, 2006, from 10,090 units for the six months ended June 30, 2005.

Gross profit margins from home sales were 23.8 percent for the six months ended June 30, 2006, versus 23.9 percent for the same period in 2005.  Selling, general and administrative expenses, as a percentage of revenue, were 10.1 percent for the six months ended June 30, 2006 and 2005.  Interest expense was $128,000 for the six months ended June 30, 2006, compared to $435,000 for the six months ended June 30, 2005.

Corporate expenses were $37.1 million for the six months ended June 30, 2006, compared to $34.4 million for the same period in the prior year.  Excluding stock option expense required by a change in accounting guidance, corporate expenses were $30.2 million, a decline of $4.2 million.  The decrease was due to lower executive compensation expense resulting from lower earnings and a decline in stock price.

The Company’s financial services segment reported pretax earnings of $26.4 million for the six months ended June 30, 2006, compared to $24.6 million for the same period in the prior year.

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RYLAND SECOND-QUARTER RESULTS

DEBT REFINANCING

The Company raised $250.0 million at 6.9 percent in May to replace $250.0 million of higher-rate debt in the third quarter of 2006.  On July 3, 2006, the Company redeemed $150.0 million of 9.1 percent senior subordinated notes, of which it owned $6.5 million.  The Company intends to repay its outstanding $100.0 million of 8.0 percent senior notes due on August 15, 2006.

STOCK REPURCHASE PROGRAM

The Company repurchased 1,815,000 shares of its common stock during the second quarter of 2006 at a cost of $103.1 million.  For the six months ended June 30, 2006, the Company repurchased 2,850,000 shares of its common stock at a cost of $175.0 million.  Outstanding shares at June 30, 2006, were 44,254,440, versus 46,833,035 for June 30, 2005, a decrease of 5.5 percent.  At June 30, 2006, the Company had authorization from its Board of Directors to purchase approximately $101.7 million of additional shares.

2006 EARNINGS GUIDANCE

The Company projects its diluted earnings per share to be between $7.75 and $8.25 for the fiscal year ending December 31, 2006.

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RYLAND SECOND-QUARTER RESULTS

With headquarters in Southern California, Ryland is one of the nation’s largest homebuilders and a leading mortgage-finance company.  The Company currently operates in 28 markets across the country and has built more than 255,000 homes and financed more than 215,000 mortgages since its founding in 1967.  Ryland is a Fortune 500 company listed on the New York Stock Exchange under the symbol “RYL.”  Previous news releases may be obtained at www.ryland.com.

Note:  Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. The factors and assumptions upon which any forward-looking statements are subject to risks and uncertainties which include, among others:

·economic changes nationally or in the Company’s local markets, including volatility in interest rates, inflation, changes in consumer confidence levels and the state of the market for homes in general;

·the availability and cost of land;

·increased land development costs on projects under development;

·shortages of skilled labor or raw materials used in the production of houses;

·increased prices for labor, land and raw materials used in the production of houses;

·increased competition;

·failure to anticipate or react to changing consumer preferences in home design;

·increased costs and delays in land development or home construction resulting from adverse weather conditions;

·potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations, or governmental policies (including those that affect zoning, density, building standards and the environment);

·delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company’s communities and land activities;

·the risk factors set forth in the Company’s most recent Annual Report on Form 10-K; and

·other factors over which the Company has little or no control.

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Five financial-statement pages follow.

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(in thousands, except share data)

		Three months ended June 30,				Six months ended June 30,
		2006		2005		2006		2005
REVENUES
Homebuilding	$	1,174,856	$	1,135,744	$	2,230,735	$	1,994,121
Financial services		22,036		23,968		40,995		39,565
TOTAL REVENUES		1,196,892		1,159,712		2,271,730		2,033,686
EXPENSES
Cost of sales		900,309		853,178		1,699,233		1,514,023
Selling, general and administrative		116,969		110,653		225,030		200,911
Financial services		7,262		7,526		14,517		14,493
Corporate		20,593		19,855		37,069		34,366
Interest		53		210		128		435
TOTAL EXPENSES		1,045,186		991,422		1,975,977		1,764,228
Earnings before taxes		151,706		168,290		295,753		269,458
Tax expense		56,889		63,950		110,907		102,392
NET EARNINGS	$	94,817	$	104,340	$	184,846	$	167,066
NET EARNINGS PER COMMON SHARE
Basic	$	2.11	$	2.22	$	4.06	$	3.53
Diluted	$	2.03	$	2.10	$	3.88	$	3.35
AVERAGE COMMON SHARES OUTSTANDING
Basic		45,025,672		47,056,571		45,580,235		47,273,041
Diluted		46,762,816		49,624,859		47,590,596		49,857,403

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

		June 30,		December 31,
		2006		2005
		(Unaudited)
ASSETS
Cash and cash equivalents	$	193,456	$	461,383
Housing inventories
Homes under construction		1,445,449		1,253,460
Land under development and improved lots		1,285,975		1,087,016
Consolidated inventory not owned		207,378		239,191
Total inventories		2,938,802		2,579,667
Property, plant and equipment		75,382		65,980
Net deferred taxes		62,759		50,099
Purchase price in excess of net assets acquired		18,185		18,185
Other		238,991		211,559
TOTAL ASSETS		3,527,575		3,386,873
LIABILITIES
Accounts payable		265,446		249,539
Accrued and other liabilities		517,115		664,691
Debt		1,185,480		921,970
TOTAL LIABILITIES		1,968,041		1,836,200
MINORITY INTEREST		145,018		174,652
STOCKHOLDERS’ EQUITY
Common stock, $1.00 par value:
Authorized - 200,000,000 shares Issued - 44,254,440 shares at June 30, 2006   (46,368,143 shares at December 31, 2005)		44,254		46,368
Retained earnings		1,364,928		1,326,689
Accumulated other comprehensive income		5,334		2,964
TOTAL STOCKHOLDERS’ EQUITY		1,414,516		1,376,021
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,527,575	$	3,386,873

SEGMENT INFORMATION (Unaudited)

(in thousands)

		Three months ended June 30,				Six months ended June 30,
		2006		2005		2006		2005
Earnings before taxes
Homebuilding	$	157,578	$	171,913	$	306,472	$	279,187
Financial services		14,721		16,232		26,350		24,637
Corporate		(20,593	)	(19,855	)	(37,069	)	(34,366	)
Total	$	151,706	$	168,290	$	295,753	$	269,458

HOMEBUILDING OPERATIONAL DATA (Unaudited)

	North		Texas		Southeast		West		Total
For the three months ended June 30,
New Orders
Units
2006	778		944		851		450		3,023
2005	1,214		1,016		1,539		1,219		4,988
Dollars (in millions)
2006	$	258	$	193	$	260	$	180	$	891
2005	385		185		440		475		1,485
Closings
Units
2006	966		821		1,216		800		3,803
2005	1,058		762		1,169		1,049		4,038
Average Price (in thousands)
2006	$	307	$	189	$	293	$	394	$	295
2005	297		170		251		343		272
For the six months ended June 30,
New Orders
Units
2006	1,814		1,968		2,109		1,153		7,044
2005	2,534		2,020		3,055		2,481		10,090
Dollars (in millions)
2006	$	591	$	390	$	649	$	443	$	2,073
2005	785		363		827		928		2,903
Closings
Units
2006	1,756		1,561		2,414		1,626		7,357
2005	1,828		1,337		2,103		1,908		7,176
Average Price (in thousands)
2006	$	309	$	187	$	286	$	398	$	295
2005	295		170		246		348		271
Outstanding Contracts at June 30,
Units
2006	1,832		1,736		3,296		1,287		8,151
2005	2,514		1,675		3,810		2,535		10,534
Dollars (in millions)
2006	$	620	$	356	$	1,065	$	482	$	2,523
2005	813		308		1,036		913		3,070
Average Price (in thousands)
2006	$	338	$	205	$	323	$	375	$	310
2005	323		184		272		360		291

FINANCIAL SERVICES SUPPLEMENTAL INFORMATION (Unaudited)

($s in thousands)

		Three months ended June 30,				Six months ended June 30,
		2006		2005		2006		2005
RESULTS OF OPERATIONS
Revenues
Net gains on sales of mortgages and mortgage servicing rights	$	11,250	$	12,778	$	20,163	$	20,991
Title/escrow/insurance		6,717		6,699		13,466		11,818
Net origination fees		3,705		3,870		6,754		5,519
Interest
Mortgage-backed securities and notes receivable		117		360		214		758
Other		246		260		397		466
Total interest		363		620		611		1,224
Other		1		1		1		13
Total revenues		22,036		23,968		40,995		39,565
Expenses
General and administrative		7,262		7,526		14,517		14,493
Interest		53		210		128		435
Total expenses		7,315		7,736		14,645		14,928
Pretax earnings	$	14,721	$	16,232	$	26,350	$	24,637
OPERATIONAL DATA
Retail operations:
Originations (units)		2,995		3,132		5,630		5,495
Ryland Homes closings as a percentage of total closings		99.5	%	99.5	%	99.5	%	99.4	%
Ryland Homes origination capture rate		82.5	%	82.9	%	81.4	%	81.8	%
Investment operations:
Mortgage-backed securities and notes receivable average balance	$	1,359	$	9,012	$	2,016	$	9,427