Borate Termite Treatment Provides Louisiana Builders, Homebuyers Unparalleled Protection; Affordable, Safe, Long-Term Treatment Chosen for Two Major Public-Private Construction Projects.

Business Editors

Although 27 parishes in Louisiana are infested with destructive Formosan termites, culminating in more than $500 million in property damage each year, a safe, powerful solution is gaining acceptance among Louisiana builders and homeowners. Guaranteed to last 20 years -- four times longer than traditional barriers -- the SmartGUARD(TM)/Advance Guard(R) solution has been increasingly used to protect residential housing, commercial buildings, and government offices -- and was recently chosen for two major public-private housing developments that will create more than 1,000 protected homes in Louisiana.

Borate treated building materials are the foundation of a new 525-unit housing development at the United States Navy base in Belle Chasse, Louisiana. The first base housing units will be completed this month with a formal ribbon cutting ceremony scheduled for June 26, 2002. The SmartGUARD/Advance Guard solution will also be featured in St. Thomas HOPE VI, an effort to transform an aging HUD housing project into a diverse neighborhood featuring retail outlets and more than 600 housing units.

The borate solution comes in the form of building products that feature built-in protection against termites, decay and other wood-destroying organisms. This solution is produced by a strategic alliance of three companies: U.S. Borax Inc., the world's leading borate supplier, Osmose, the leader in wood preservation technology, and LP, the world's largest producer of oriented strand board (OSB).

"When we introduced the SmartGUARD/Advance Guard solution to the market, Formosan termites had already infested 90 counties and parishes in the southeastern United States. At that time, builders and homeowners both wanted a better alternative to fight the termite problem," says Tarun Bhatia, business development manager for U.S. Borax. "Borate treated building systems offer people safe, built-in protection using affordable and sustainable building materials."

SmartGUARD/Advance Guard products include building materials such as studs, plywood, joists, rafters and OSB panels. The lumber and plywood products are pressure-treated for deep penetration of naturally-occurring minerals called borates; the OSB is treated by adding borates directly into the manufacturing process to ensure thorough distribution.

Borates prevent fungal decay and are deadly to termites, carpenter ants and roaches -- but safe for people, pets and the environment. Borates interfere with termites' metabolic processes, effectively killing them. Any surviving termites avoid the protected wood products. This solution is even effective at terminating a voracious and highly destructive species, the subterranean Formosan termite.

Borate treated building products have been used successfully for decades in Europe, New Zealand and other parts of the world; for ten years in Hawaii, home to some of the highest termite activity in the world; and increasingly throughout the continental United States, where termites cause up to $3 billion in damage each year.

SmartGUARD/Advance Guard borate treated building products are as affordable as they are effective. On average, using borate-treated products adds two percent to the construction cost of a home. For a 2,000 square foot home, that translates to between $3,000 and $4,000. This one-time expense is far lower than the amount homeowners often spend repairing damage caused by termites or applying less permanent treatment systems.

For the Belle Chasse Navy Housing Project, members Patrician Development, Broadmoor Design Group and Broadmoor LLC, chose borate treated building materials to create durable, affordable and high quality housing for military personnel. Since concrete and steel structural systems are expensive to build, the team looked for alternative building materials that are environmentally-friendly and resistant to termites and decay.

"With the money we saved using borate treated wood, we were able to raise the standard for design and functionality in these units. In other words, we created housing that contributes to a better quality of life for military families, who move often and deserve the architectural amenities that make homes and communities livable," said Dean Duplantier, vice president of architecture for Broadmoor LLC.

Historic Restoration Inc. (HRI) a local firm that specializes in creating diverse and sustainable communities, also chose the borate solution for its public-private St. Thomas HOPE VI project. HRI is revitalizing 50 acres that once held HUD housing projects with an occupancy rate of 40 percent, and creating a diverse neighborhood featuring homes, condominiums, retail outlets, common green spaces and a retirement home, as well as subsidized housing.

"In high termite hazard areas of Louisiana and the South, the traditional method of protecting homes is not sufficient," says Clif Jones, business manager for borate wood preservatives at Osmose. Many builders in Louisiana rely solely on traditional soil treatments to protect homes against termites -- these typically last from five to seven years. First, formosan termites can build nests above ground, so they can bypass even functioning soil barriers. Second, soil barriers and baiting systems fail to protect the house from decay fungi, drywood termites and other wood destroying organisms."

Although deadly to termites, borates are essential to plant life, and an important part of a healthy human diet. Borate treated building products are safe for construction crews and the environment -- requiring no special handling or disposal in the construction process -- and for every member of the household once the home is finished.

About Borax

Borax mines one of two world-class borate deposits on the planet and supplies nearly half the global demand for refined borates. The company is the acknowledged world leader in borate chemistry and technology development. Borates are minerals containing boron, the fifth element on Periodic Table. Trace amounts exist in rock, soil and water. Boron is one of seven essential micronutrients for plants, and part of a healthy human diet. Refined borates can be found in a wide variety of household and commercial products, including glass, fiberglass, ceramics, soap and detergents, personal care products, fertilizers and wood preservatives. Borax celebrated 130 years of continuous business in California this year and is part of the world's leading mining company, London-based Rio Tinto. For more information, visit www.borax.com.

About Broadmoor, LLC

Broadmoor, LLC is a general contractor specializing in commercial construction projects, large and small. Licensed to perform general contracting in Louisiana, Mississippi, Alabama and Florida, Broadmoor is in its 28th year of operation. The average construction project for Broadmoor is in the $30 to $70 million dollar range, with single contract values of $193 million in recent years. Broadmoor offers experience in procurement of commercial projects including healthcare facilities, office and technology facilities, multi-family housing, hotel and hospitality.

About HRI/HCI

Historic Restoration Inc., based in New Orleans, La. is a full service real estate development company and a national leader in the adaptive reuse of historic structures. HRI's mission is to revitalize cities by creating diverse, vibrant, sustainable communities." HCI Construction and Design is the HRI Group's in-house staff of architects, interior designers, and construction managers, dedicated to providing services of exceptional quality for HRI development projects.

About LP

LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its rapidly growing retail, wholesale, homebuilding and industrial customer base. For more information, visit www.lpcorp.com.

About Osmose

With national and international operations, Osmose has earned a reputation as the trusted source for wood preservation and wood maintenance technologies. While Osmose's core business is improving the performance of wood, the company also develops proprietary repair and maintenance technologies for concrete and steel. Today, Osmose products and services span the utility, railroad, marine, transportation and building supply industries. For more information, visit www.osmose.com/wood/usa/preserved/smartguard/.