M.D.C. (MDC) 8-K M.D.C. Holdings Reports 20% Increase In 2005 Second Quarter Earnings Per Share

EXHIBIT 99.1

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 13, 2005

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

M.D.C. HOLDINGS REPORTS 20% INCREASE IN
2005 SECOND QUARTER EARNINGS PER SHARE

• Earnings per share of $2.25 vs. $1.87 a year ago

• Record second quarter net income of $102.6 million, up 24%

• Highest-ever second quarter revenues of $1,046.3 million, a 20% increase

• Record quarterly home orders and second quarter home closings

• All-time high quarter-end backlog valued at $3.14 billion, up 26%

• Home gross margins of 28.6%, 100 basis points above last year

• After-tax return on average equity (LTM) of 31.2%

• Net debt-to-capital ratio of .30

     DENVER, Wednesday, July 13, 2005 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the three months ended June 30, 2005 of $102.6 million, or $2.25 per share, the highest for any second quarter in the Company’s history and 24% above net income of $82.6 million, or $1.87 per share, for the same period in 2004. In addition, MDC achieved second quarter records for home closings, revenues and home gross margins.

     Net income for the six months ended June 30, 2005 was $187.3 million, or $4.10 per share, 31% higher than the $143.5 million, or $3.24 per share, for the same period in 2004. Total revenues for the six months ended June 30, 2005 reached a record $1.980 billion, representing an increase of 21% from revenues of $1.639 billion for the first six months of 2004.

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     “We have leveraged the strong fundamentals that continue to support the homebuilding industry to produce record quarterly operating profits for the 12^th consecutive quarter and for the 23^rd time in the last six years,” said Larry A. Mizel, MDC’s chairman and chief executive officer. “Low interest rates, increasing job growth, declining unemployment, rising consumer confidence, strong demographic trends and a generally improving economy have provided the platform for outstanding performances by all of the well-capitalized public homebuilders. We believe that the increased use of adjustable rate, interest-only mortgages and purchases of homes for investment, while receiving a great deal of publicity, remain limited threats to our industry’s well-being.

     MDC’s conservative operating model, strong financial position and expanding geographic footprint have enabled us to produce operating margins and returns in this environment that rank among the best of our peers, including our record 28.6% home gross margin in the 2005 second quarter and our 31.2% return on average equity over the last 12 months. At the same time, we have maintained leverage ratios that are among our industry’s lowest, evidenced by our ratio of debt-to-capital, net of cash, of .30 at June 30, 2005. This unique combination resulted in our recent recognition as one of the top six companies named to the prestigiousBarron’s500, which ranks companies on how well they perform for investors.”

     Mizel continued, “While producing these record results, we continued to focus on strengthening our financial position and enhancing shareowner value. As we positioned our Company for future growth through the 30% year-over-year increases in our lot supply and active subdivisions, we increased our June 30^th cash and available borrowing capacity by 58% from this time last year. Our financial flexibility improved even more last week when we closed on the issuance of an additional $250 million in 10-year, unsecured medium term notes at a coupon interest rate of only 5 3/8%. In addition, to achieve our desired balance in the allocation of capital between growth of operations and sharing our successes with our shareowners, we increased our quarterly dividend declared in April to $.18 per share. This dividend amount represents increases of 20% and 56%, respectively, over the previous quarter and the same quarter last year and, considering the previously paid stock dividends and our 30% stock split earlier this year, is more than three times the quarterly dividend we paid 24 months ago.”

     Mizel concluded, “The continued strength in demand for new homes in our long-standing markets, combined with the ramping up of our operations in our newer markets in Utah, Florida, Delaware Valley and Chicago, enable us to look forward to the balance of 2005 and 2006 with optimism that we can meet our goals for future growth. With the significant increase in our active subdivisions and our highest-ever quarter-end backlog of more than 9,200 homes, we are well-positioned to generate new Company highs for revenues and earnings in 2005. And we are optimistic regarding continued solid growth in 2006.”

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Record Homebuilding Profits

     Homebuilding operating profits for the quarter and six months ended June 30, 2005 were $187.6 million and $350.1 million, respectively, representing increases of 23% and 32% over profits of $152.5 million and $265.9 million, respectively, for the same periods in 2004. These increases primarily are the result of the record level of home closings and home gross margins, as well as higher average selling prices of homes closed. The Company closed 3,512 homes and 6,670 homes, respectively, in the second quarter and first six months of 2005, 14% and 11% higher than home closings in the same periods in 2004. Home gross margins reached 28.6% and 28.5%, respectively, for the three and six months ended June 30, 2005, representing increases of 100 basis points and 160 basis points from home gross margins for the comparable periods in 2004. For the second quarter and first six months of 2005, the Company’s average selling prices increased to $293,200 and $291,800, respectively, compared with $279,300 and $268,200 for the same periods in 2004.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “The record performance by our homebuilding segment in the 2005 second quarter was driven by improved year-over-year operating results from our long-standing businesses in Arizona, Nevada and Virginia, as well as from our relatively new operations in Utah and Florida. Profits in Arizona, Utah and Florida were enhanced by significant increases in home closings. Substantial improvements in home gross margins in Virginia added to our increased results and offset the impact of the anticipated easing of home gross margins in Nevada from the extraordinary levels of the past year. Higher average selling prices in each of these five markets and in most of our other operating divisions contributed to our higher profitability in this quarter.”

     Reece continued, “Our average selling price of all homes closed in this quarter was higher than we had anticipated. This increase primarily resulted from the combination of closing a greater number of homes than expected in the higher-priced California markets and closing fewer homes than expected in Arizona due to weather and subcontractor-related delays. The average selling price of homes in our quarter-end backlog also increased more than previously expected, to just over $340,000 from $308,000 at the end of the first quarter. While sales price increases played a part, this rise also can be attributed to a change in the backlog mix, the most significant of which was an increase in California and a decrease in Arizona as a percentage of total backlog. We anticipate that a significant number of the homes added to our backlog in this quarter in California, as well as in the Mid-Atlantic markets, will be delivered late this year and in 2006. Therefore, while we expect that the average selling price of homes we close in the third and fourth quarters of 2005 will rise sequentially from the $293,000 in the second quarter, we believe the increase in the third quarter will be relatively modest, influenced more by our growth in the lower-priced, faster-delivering markets such as Utah, Florida, Texas and Arizona.”

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     Reece concluded, “Our home gross margins reached a new high in the 2005 second quarter. While these margins benefited from the strong demand for new homes in many of our markets, particularly in Arizona and Virginia, approximately half of the margin increase is attributable to certain non-recurring items, including insurance proceeds and other cash recoveries related to warranty and land development costs expensed in previous periods.”

Improved Financial Services Results

     Operating profits from the Company’s financial services business for the quarter and six months ended June 30, 2005, were $4.1 million and $7.0 million, respectively, compared with $3.1 million and $7.8 million for the same periods in 2004. The improvement in profits in the 2005 second quarter was due primarily to an increase in loan origination fees earned in connection with the record second quarter level of mortgage loans originated. This increase partially was offset by lower gains on sales of mortgage loans resulting from the more competitive mortgage pricing environment.

     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, Jacksonville, Phoenix, Tucson, Las Vegas and Salt Lake City; and among the top ten homebuilders in Northern California and Southern California. MDC also has established operating divisions in Dallas/Fort Worth, Houston, West Florida, Philadelphia/Delaware Valley and Chicago. For more information about our Company, please visit www.richmondamerican.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding future revenues, earnings, margins and selling prices, 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

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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)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
REVENUES
Homebuilding	$	1,033,294		$	863,369		$	1,954,624		$	1,612,233
Financial Services		12,812			11,947			24,410			26,395
Corporate		234			167			1,222			459
Total Revenues	$	1,046,340		$	875,483		$	1,980,256		$	1,639,087
NET INCOME
Homebuilding	$	187,625		$	152,485		$	350,135		$	265,930
Financial Services		4,127			3,145			6,974			7,802
Operating Profit		191,752			155,630			357,109			273,732
Corporate general and administrative expense, net		(27,775	)		(21,343	)		(57,203	)		(39,627	)
Income before income taxes		163,977			134,287			299,906			234,105
Provision for income taxes		(61,354	)		(51,719	)		(112,652	)		(90,636	)
Net Income	$	102,623		$	82,568		$	187,254		$	143,469
EARNINGS PER SHARE
Basic	$	2.35		$	1.95		$	4.30		$	3.39
Diluted	$	2.25		$	1.87		$	4.10		$	3.24
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		43,718			42,318			43,584			42,312
Diluted		45,703			44,233			45,649			44,257
DIVIDENDS DECLARED PER SHARE	$	.180		$	.115		$	.330		$	.203

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

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
Homebuilding
Home sales	$	1,029,553		$	861,537		$	1,946,384		$	1,607,966
Land sales		—			—			1,296			—
Other revenues		3,741			1,832			6,944			4,267
Total Homebuilding Revenues		1,033,294			863,369			1,954,624			1,612,233
Home cost of sales		734,772			623,894			1,391,552			1,174,918
Land cost of sales		—			—			790			—
Marketing		53,688			44,653			101,852			87,821
General and administrative		57,209			42,337			110,295			83,564
Total Homebuilding Expenses		845,669			710,884			1,604,489			1,346,303
Homebuilding Operating Profit		187,625			152,485			350,135			265,930
Financial Services
Interest revenues		728			900			1,255			1,830
Origination fees		6,854			5,399			12,995			10,663
Gains on sales of mortgage servicing		791			521			1,469			1,137
Gains on sales of mortgage loans, net		3,769			4,533			7,016			11,310
Mortgage servicing and other		670			594			1,675			1,455
Total Financial Services Revenues		12,812			11,947			24,410			26,395
General and administrative		8,685			8,802			17,436			18,593
Financial Services Operating Profit		4,127			3,145			6,974			7,802
Total Operating Profit		191,752			155,630			357,109			273,732
Corporate
Interest and other revenues		234			167			1,222			459
Other general and administrative expenses		(28,009	)		(21,510	)		(58,425	)		(40,086	)
Income Before Income Taxes	$	163,977		$	134,287		$	299,906		$	234,105

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

	June 30,			December 31,			June 30,
	2005			2004			2004
BALANCE SHEET DATA
Stockholders’ Equity Per Share Outstanding	$	36.88		$	32.80		$	27.22
Stockholders’ Equity	$	1,614,022		$	1,418,821		$	1,150,383
Homebuilding and Corporate Debt		776,459			746,310			587,797
Total Capital (excluding mortgage lending debt)	$	2,390,481		$	2,165,131		$	1,738,180
Cash and Cash Equivalents	$	70,489		$	408,150		$	76,701
Unrestricted Cash and Available Borrowing Capacity Under Lines of Credit	$	1,030,361		$	1,050,954		$	653,753
Ratio of Homebuilding and Corporate Debt to Equity		.48			.53			.51
Ratio of Homebuilding and Corporate Debt to Capital		.32			.34			.34
Ratio of Homebuilding and Corporate Debt to Capital (net of cash)		.30			.19			.31
Housing Completed or Under Construction Inventories	$	1,190,380		$	851,628		$	982,307
Land and Land Under Development Inventories	$	1,302,718		$	1,109,953		$	875,494
Corporate and Homebuilding Interest Capitalized	Quarter			Full Year			Quarter
Interest Capitalized in Inventories at Beginning of Period	$	27,741		$	20,043		$	21,047
Interest Incurred During the Period		11,110			32,879			7,709
Interest in Home and Land Cost of Sales for the Period		(8,558	)		(28,702	)		(6,733	)
Interest Capitalized in Inventories at End of Period	$	30,293		$	24,220		$	22,023
Interest Capitalized as a Percent of Inventories		1.2	%		1.2	%		1.2	%

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
OPERATING DATA
Interest in Home Cost of Sales as a Percent of Home Sales Revenues		0.8	%		0.8	%		0.8	%		0.8	%
Homebuilding and Corporate SG&A as a Percent of Home Sales Revenues		13.5	%		12.6	%		13.9	%		13.2	%
Depreciation and Amortization	$	11,592		$	8,163		$	21,586		$	17,093
Home Gross Margins		28.6	%		27.6	%		28.5	%		26.9	%
Cash Used in Operating Activities	$	(208,595	)	$	(118,123	)	$	(326,103	)	$	(161,343	)
Cash Used in Investing Activities	$	(7,061	)	$	(2,978	)	$	(11,724	)	$	(5,277	)
Cash Provided by Financing Activities	$	59,311		$	98,723		$	166		$	69,756
After-Tax Return on Revenues		9.8	%		9.4	%		9.5	%		8.8	%
After-Tax Return on Average Assets (Rolling 12 Months Ended)		N/A			N/A			16.3	%		14.0	%
After-Tax Return on Average Equity (Rolling 12 Months Ended)		N/A			N/A			31.2	%		27.3	%

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

	June 30,		December 31,		June 30,
	2005		2004		2004
LOTS OWNED AND CONTROLLED
Lots Owned		22,721		20,760		19,523
Lots Under Option		20,158		21,164		13,340
Homes Under Construction (including models)		7,891		5,573		6,551
LOTS OWNED AND CONTROLLED BY MARKET
(excluding homes under construction)
Arizona		11,763		11,151		7,318
California		4,226		4,428		3,215
Colorado		6,362		5,859		5,435
Florida		4,259		3,574		1,313
Illinois		771		711		649
Maryland		1,829		1,856		1,723
Nevada		5,143		5,775		5,636
Philadelphia/Delaware Valley		1,586		1,035		321
Texas		1,875		2,336		2,694
Utah		1,270		1,078		1,490
Virginia		3,795		4,121		3,069
Total Company		42,879		41,924		32,863
ACTIVE SUBDIVISIONS
Arizona		44		32		34
California		31		22		20
Colorado		55		53		55
Florida		23		18		7
Illinois		5		1		—
Maryland		14		11		10
Nevada		45		31		23
Philadelphia/Delaware Valley		5		2		—
Texas		25		24		22
Utah		17		22		18
Virginia		18		26		28
Total Company		282		242		217
Average for Quarter Ended		275		237		223

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
AVERAGE SELLING PRICE PER HOME CLOSED
Arizona	$	219.5	$	192.7	$	211.7	$	191.7
California		498.1		434.0		508.4		411.8
Colorado		286.2		268.3		284.6		265.1
Florida		206.4		183.9		196.3		177.8
Illinois		451.6		—		439.8		—
Maryland		418.2		400.0		420.8		408.5
Nevada		297.7		227.7		293.3		217.7
Philadelphia/Delaware Valley		347.3		—		347.3		—
Texas		158.6		161.1		157.2		161.2
Utah		215.1		177.3		214.2		176.0
Virginia		507.4		430.3		496.3		420.7
Company Average	$	293.2	$	279.3	$	291.8	$	268.2

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

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005		2004
Orders For Homes, net(units)
Arizona		1,090			1,243			2,242		2,153
California		702			627			1,233		1,453
Colorado		594			599			1,258		1,290
Florida		359			90			679		199
Illinois		31			3			60		3
Maryland		131			79			276		203
Nevada		1,209			927			1,959		1,957
Philadelphia/Delaware Valley		57			—			100		—
Texas		189			224			510		495
Utah		236			210			484		386
Virginia		234			230			577		522
Total		4,832			4,232			9,378		8,661
Cancellation Rate		19.3	%		23.2	%
Homes Closed, net(units)
Arizona		859			665			1,655		1,535
California		377			535			763		1,011
Colorado		568			542			1,016		1,020
Florida		285			84			580		155
Illinois		16			—			21		—
Maryland		80			91			154		161
Nevada		626			629			1,235		1,197
Philadelphia/Delaware Valley		1			—			1		—
Texas		237			148			402		218
Utah		233			124			401		228
Virginia		230			267			442		470
Total		3,512			3,085			6,670		5,995
Backlog(units)	June 30,			Dec 31,			June 30,
	2005			2004			2004
Arizona		2,730			2,143			1,951
California		1,277			807			1,561
Colorado		934			692			1,004
Florida		737			638			148
Illinois		57			18			3
Maryland		347			225			311
Nevada		1,470			746			1,646
Philadelphia/Delaware Valley		122			23			—
Texas		364			256			420
Utah		372			289			309
Virginia		803			668			906
Total		9,213			6,505			8,259
Backlog Estimated Sales Value	$	3,140,000		$	1,920,000		$	2,500,000
Estimated Average Selling Price of Homes in Backlog	$	340.8		$	295.2		$	302.7

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