Building Materials Holding Corporation Agrees to Acquire the A.C. Houston Lumber Company's Carson Valley, Nevada Truss Facility.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 10, 1998--

Acquisition Will Make BMHC the Only Full-Service Building Materials

Supplier in Reno/Carson City/Gardnerville Region

Building Materials Holding Corporation (Nasdaq:BMHC) today announced that its wholly owned subsidiary BMC West Corporation has signed a definitive purchase and sale agreement to purchase The A.C. Houston Lumber Company's Carson Valley truss facility, located in Minden, Nev., in an all-cash transaction.

The facility, which is the third largest truss assembler in the Reno/Carson City/Gardnerville area, is located on a 10-acre site and had truss sales of $5.6 million in 1997. This transaction is expected to close by the end of 1998.

"The consummation of this transaction will be an important step in the Company's efforts to increase its presence in this growing region of Nevada," said Robert E. Mellor, president and chief executive officer.

"The expanded operations will make BMHC the only full-service supplier of building materials in this market, allowing the Company to attract new customers as well as increase sales per building permit to existing customers with a full range of value-added products. The truss operation in Carson Valley will enable BMHC to increase its business with professional contractors in all of its northern Nevada operations. The expanded operations should result in better purchasing power and improved operational efficiencies."

Mellor continued, "With this acquisition, total 1998 acquired sales for the Company will be in excess of $62 million, which meets the previously stated acquisition goal for the year."

Building Materials Holding Corporation, through its wholly owned subsidiary BMC West Corporation, is a leading distributor of building materials to professional new residential and commercial and industrial contractors as well as professional repair and remodel contractors.