TABLE OF CONTENTS

Financial Highlights

Chairman's Letter

A Strategy for the Future

Achieving Market Dominance

Targeting Entry-Level, First- and Second-Move-Up, and Retirement Buyers

Establishing Ryland as a Value Leader

Building Brand Value

Maximizing our Geographic Strength

Capitalizing on a Decentralized Management Structure

Positioning Ryland for Future Growth

Financial Review

Five-Year Review of Selected Financial Data

Report of Management

Board of Directors

Quarterly Financial Data and Common Stock Prices and Dividends

Corporate and Subsidiary Officers

Corporate and Investor Information

Report of Independent Auditors

Management's Discussion and Analysis of Results of Operations and Financial Condition

• The Company
• Results of Operations
• Homebuilding Operational Data
• Financial Services Segment
• Financial Condition and Liquidity
• Year 2000 Readiness Disclosure
• Market Risk Summary
• Interest Rate Sensitivity

Consolidated Statements of Earnings

Consolidated Balance Sheets

Consolidated Statements of Stockholders' Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Note A: Summary of Significant Accounting Policies

Note B: Segment Information

Note C: Earnings Per Share Reconciliation

Note D: Assets of Financial Services and the Limited-Purpose Subsidiaries

Note E: Financial Services Short-Term Notes Payable

Note F: Off Balance Sheet Financial Instruments Related to Mortgage Loan Originations

Note G: Fair Values of Financial Instruments

Note H: Limited-Purpose Subsidiaries' Bonds Payable

Note I: Long-Term Debt

Note J: Income Taxes

Note K: Stockholders' Equity

Note L: Employee Incentive and Stock Plans

Note M: Commitments and Contingencies