Kimball Hill Homes Announces New Board Appointments

Kimball Hill Homes today announced the appointments of Ken Love as Executive Chairman of the Company and Diane Hill as a Director.

Mrs. Diane Hill will be a member of the Board of Directors. Mrs. Hill is the wife of founder David K. Hill and is an active philanthropist in Chicago. Mrs. Hill retired from Northwestern University where she served for 32 years as senior lecturer, author and clinical supervisor in speech and language pathology. She is a member of several Boards including Northwest Community Hospital, Augustana College, Northwest Community Cultural Council, the WINGS Advisory Board and is an active member of the Harper Community College Educational Foundation.

Mr. Love succeeds David K. Hill, founder and former Chief Executive Officer of Kimball Hill Homes. Mr. Love joined the company in 2005 as Vice Chairman. In October 2007, Mr. Love was appointed President and Chief Executive Officer. He has served as a member of the Board since 2005. Prior to joining Kimball Hill Homes, Mr. Love held the position of Senior Partner with Deloitte & Touche LLP for nearly three decades.

“I am honored to be following in the footsteps of such a great leader,” said Ken Love. “As I reflect on the strengths of everyone at Kimball Hill Homes I am awed by the level of commitment to Caring Excellence that David inspired.

“With the addition of Diane to the Board, I believe Kimball Hill Homes will continue to build on these enduring principles of straightforward business practices, extraordinary customer satisfaction and an organization demonstrating Caring Excellence in all aspect of its dealings.”

Kimball Hill Homes, a recognized leader in the building industry and winner of numerous awards for design and quality, has been building on the Hill family tradition since 1969. Based in Rolling Meadows, IL, the Company currently builds in various markets in 5 states: Texas, Illinois, Nevada, California and Florida. For more information about Kimball Hill Homes, visit its award-winning web site at www.kimballhillhomes.com.

Forward Looking Statement:

Certain statements included in this announcement contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our current expectations of forecasts of future events, and no assurance can be given that the results described in this announcement will be achieved. You can identify these forward-looking statements by the fact that they do not relate strictly to historic or current facts. They use words such as “anticipate,”“believe,” “estimate,”“expect,” “forecast,”“goal,” “intend,”“objective,” “plan,”“projection,” “seek,”“strategy,” or other words and terms of similar meaning. Any or all of the forward-looking statements included in this announcement and in any other of our reports or public statements may not approximate actual experience, and the expectations derived from them may not be realized, due to known, or unknown risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include, but are not limited to: (i) our ability to continue as a going concern; (ii) our ability to operate pursuant to the terms of any debtor-in-possession facility; (iii) our ability to obtain court approval with respect to motions in the Chapter 11 proceeding; (iv) our ability to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for us to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) our ability to obtain and maintain normal terms with vendors and service providers; (vii) our ability to maintain contracts that are critical to our operations; (viii) the potential adverse impact of the Chapter 11 cases on our liquidity or results of operations; (ix) our ability to fund and execute our business plan; (x) our ability to attract, motivate and/or retain key executives and employees; (xi) our ability to attract and retain customers and (xii) other risks and factors regarding Kimball Hill and the home building industry identified from time-to-time in our reports filed with the SEC, including the risk factors identified in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. If any one or more of the assumptions underlying our forward-looking statements proves incorrect, then the company’s actual results, performance, or achievements could differ materially from those expressed in or implied by the forward-looking statements contained in the announcement. Therefore, we caution you not to place undue reliance on these forward-looking statements. We do not undertake any obligation or duty to update forward-looking statements.