Building Materials Holding Corporation Completes Credit Facility Expansion.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 26, 2001

Building Materials Holding Corporation (Nasdaq:BMHC), a leading provider of construction products and services to professional builders and contractors, today announced that it has successfully completed the expansion of its bank credit facility to $300 million, consisting of a $110 million term loan and a $190 million revolving credit line. The total increase of more than $58 million was accomplished through an amendment and restatement of the Company's existing bank credit facility, in conjunction with the appointment of Wells Fargo Bank as Administrative Agent and Lead Arranger, and with the assistance of First Union National Bank as Syndication Agent. The financing arrangement originated in November of 1999 and its maturity date remains unchanged at December 1, 2004.

"We are extremely pleased with the completion of our credit facility expansion and the level of confidence shown in BMHC by Wells Fargo Bank in taking the leadership role in the credit facility," said Robert E. Mellor, president and chief executive officer of Building Materials Holding Corporation. "This was achieved while maintaining the favorable terms and pricing of the original deal in a banking environment that has tightened considerably in the past two years.

"The increased credit availability further enables BMHC to continue achieving the objectives of our growth strategy. The expanded credit facility will provide funding for future acquisitions and facility expansions and improvements, as well as for other capital expenditures and general corporate purposes, including working capital."

Building Materials Holding Corporation is a leader in the residential construction market, specializing in providing high quality, value-added products and services to professional residential builders and contractors. BMHC operates through its subsidiaries BMC West Corporation and BMC Framing Inc., with 137 facilities organized into 60 business units in 13 Western and Southern states. Keys to the Company's 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 supply 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, 2000. 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.