Building Materials Holding Corporation Completes Acquisition of Royal Door Company, Inc.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 10, 1999--

Building Materials Holding Corporation (Nasdaq: BMHC) today announced that its wholly owned subsidiary BMC West Corporation completed the acquisition of Royal Door Company, Inc., a millwork sales, distribution and installation company that had 1998 sales of approximately $21 million. Royal Door has operations in Dallas, Texas, Sacramento, California and Las Vegas, Nevada. Royal Door manufactures and installs pre-hung doors and millwork primarily on multi-family and light commercial projects.

"BMHC is very pleased with the acquisition of Royal Door as it provides a launch point for the Company to enter the multi-family and light commercial markets, said Rob Mellor, President and Chief Executive Officer of Building Materials Holding Corporation. "Royal Door further strengthens the Company's existing operations in Dallas and Las Vegas and also presents the opportunity to cross-sell our other value-added products to Royal Door's customers. In addition, BMHC will have operations in Sacramento, expanding the markets served in California."

"With the addition of Royal Door the Company has now completed four transactions this year with annual sales totaling approximately $90 million, which includes the Company's share of sales from its investment in Knipp Brothers and $31 million from three acquisitions. BMHC's acquisition strategy and its plan to continue to increase value-added products and services as a percentage of sales is on track and we believe we are well positioned going into next year."

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 factors are discussed in detail in Building Materials Holding Corporation's Form 10-K for the fiscal year ended December 31, 1998. 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.

Building Materials Holding Corporation is a leading provider of building materials to professional new residential and commercial and industrial contractors and builders as well as professional repair and remodel contractors.