BMHC Building Materials

BMHC Reaches Agreement to Acquire 51% Interest in BBP Companies Acquisition Provides Concrete Foundation Services in Arizona SAN FRANCISCO, June 13 /PRNewswire-FirstCall/ -- Building Materials Holding Corporation (NASDAQ:BMHC) today announced that its wholly owned subsidiary, BMC Construction, has entered into a definitive agreement to acquire a 51% interest in BBP Companies which had sales in excess of $100 million in 2004. BBP Companies provide concrete foundation services to high-volume production homebuilders in Arizona. The transaction is expected to close in early July 2005 and is subject to customary closing conditions. Robert E. Mellor, BMHC's Chairman, President and Chief Executive Officer, stated, "This transaction is complementary to our framing and plumbing services in the greater Phoenix and Tucson markets. The addition of concrete foundation services fits with our strategy of expanding our service offerings to meet the needs of high-volume production homebuilders in attractive U.S. markets. BBP Companies' President, Gary Burleson, and his management team have established a business with a solid reputation for providing high quality services. We believe BBP Companies will be a strong addition to BMC Construction and are confident in the alignment with BMHC's cultural values and vision for the future." About BMHC BMHC, a Fortune 1000 company, is one of the largest suppliers of residential building materials and construction services in the United States. We compete in the homebuilding industry through two subsidiaries, BMC West and BMC Construction. With locations in the western and southern states, BMC West distributes building materials and manufactures building components for professional builders and contractors. BMC Construction provides construction services to high-volume production homebuilders in key growth markets in the United States. To learn more about BMHC, visit our website at http://www.bmhc.com/. Business Risks and Forward-Looking Statements There are a number of business risks and uncertainties that affect our operations and therefore could cause future results to differ from past performance or expected results. Additional information regarding business risks and uncertainties is contained in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2004. These risks and uncertainties may include, but are not limited to: demand for homebuilding which is influenced by changes in the overall condition of the U.S. economy, including job formation, interest rates and consumer confidence as well as other important factors; fluctuations in our costs and availability of sourcing channels for commodity wood products and building materials; changes in the business models of our customers; intense competition; integration of acquired businesses may not result in anticipated cost savings and revenue synergies being fully realized or it may take longer to realize than expected; our ability to identify suitable acquisition candidates; availability of and ability to attract, train and retain qualified individuals; unanticipated weather conditions including natural catastrophic events such as earthquakes, fire, flood, hurricanes, tornadoes, etc.; implementation of cost structures that align with revenue growth; actual and perceived vulnerabilities as a result of terrorist activities and armed conflict; and numerous other matters of a local and regional scale, including those of a political, economic, business, competitive or regulatory nature. Certain statements made in this news release and other written or oral statements made by or on behalf of us may constitute forward-looking statements within the meaning of federal securities laws. Statements that are not historical or current facts, including statements about our expectations, anticipated financial results and future business prospects are forward-looking statements within the meaning of these laws. While these statements represent our current judgment on what the future may hold and we believe these judgments are reasonable, these statements involve risks and uncertainties that are important factors that could cause actual results to differ materially from those in forward-looking statements. These factors include, but are not limited to the risks and uncertainties cited in the above paragraph and are more fully described in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2004. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date of this news release. We undertake no obligation to update forward-looking statements. DATASOURCE: Building Materials Holding Corporation CONTACT: Bill Smartt, Senior Vice President and Chief Financial Officer, +1-415-627-9100, or Ellis Goebel, Senior Vice President, Business Development and Investor Relations, +1-415-627-9100, both of Building Materials Holding Corporation Web site: http://www.bmhc.com/

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