BMHC Expands Residential Framing Operations.

Business Editors

Building Materials Holding Corporation (Nasdaq:BMHC), a leading provider of construction services and products to professional builders and contractors, today announced that it has signed a definitive agreement to expand its residential framing operations in Northern California. The new business unit, KBI Norcal, will be owned 51% by BMHC through its subsidiary BMC Framing, Inc., and 49% by a company formed by Robert Garcia and John Volkman, principals of Sanburn Construction Corporation ("Sanburn"), a privately held firm based in Dixon, California.

Sanburn currently provides turnkey framing services for more than 15 leading national and regional production homebuilders in the greater Sacramento market, as well as in portions of the East and North San Francisco Bay Area. Sanburn has operated in Northern California since 1988 and generated annual sales of approximately $63 million in fiscal 2001. Upon completion of the transaction, KBI Norcal will serve those customers now served by Sanburn. Additionally, Sanburn will complete its existing contracts and then wind up its operations over a period of several months.

The transaction is subject to customary closing conditions and is expected to close by July 1, 2002. Total consideration for the 51% interest in the partnership will be less than $10 million, comprised of cash, assumed debt and the issuance of approximately 35,000 shares of BMHC common stock. Under the agreement, BMHC will have the right to acquire the remaining 49% interest in KBI Norcal after two years. Garcia and Volkman will have a corresponding right to require BMHC to purchase the remaining 49% interest after four years. Furthermore, as part of the transaction, KBI Norcal will purchase certain assets of Sanburn.

"The expansion of our well-known and respected KBI brand into Northern California marks a continuation of our growth strategy," said Mr. Robert E. Mellor, chairman and chief executive officer. "Our investment in KBI Norcal and the transition of Sanburn's operations to KBI Norcal are ideal complements to our current framing operations. We also see opportunities to expand this venture to include other operations we have been conducting, such as truss manufacturing, lumber logistics, and millwork fabrication and installation.

"The professional reputation and the focus on quality by Sanburn's management and staff, who will be joining KBI Norcal, as well as their desire and commitment to remain involved in the operation, played a large role in our decision to make this investment. The founders of Sanburn, Robert Garcia and John Volkman, share similar values with BMHC and recognize that the success of KBI Norcal depends on the quality of their relationships with employees, customers and suppliers."

Mr. Robert Garcia, President of Sanburn Construction, stated, "John and I are very pleased to join BMHC in KBI Norcal. This venture is an exciting opportunity which will provide us with the resources we need to continue to grow and lead the residential framing business in Northern California. We look forward to leveraging BMHC's buying power as well as its expertise in distribution and manufacturing, to strengthen our framing business."

About BMHC

Building Materials Holding Corporation is a leader in the construction services and building materials industry. The Company specializes in providing high quality products, as well as engineering, manufacturing and installation services to professional residential builders and contractors. BMHC operates through its subsidiaries BMC West Corporation and BMC Framing Inc., with 131 facilities organized into 58 business units in 12 Western and Southern states. Keys to the Company's long-term success include concentration on housing markets where growth outpaces national averages, and a strong management structure that keeps BMHC close to local market trends and to the service needs of its customers.

Business Risks and Forward-Looking Statements

Certain statements made in this news release 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, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks or uncertainties may include, but are not limited to changes in costs of materials sold; changes in selling prices; competition within the building materials and construction services industry; changes in economic conditions and interest rates; integration of acquired businesses; increases in raw materials and labor costs; retention of key management personnel; consumer confidence; household and job formation; government regulation; and general economic, business and competitive factors, all or each of which may cause actual results to differ from the statements made in this press release. These risks and uncertainties are discussed in detail in Building Materials Holding Corporation's Form 10-K for the fiscal year ended December 31, 2001. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained in the Annual Report on Form 10-K or this news release.