Building Materials Holding Corporation Has Signed an Agreement to Sell Three Small Texas Centers.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 23, 1999--

Building Materials Holding Corporation (Nasdaq:BMHC) today announced that it has signed an agreement to sell, for cash, three of its centers in Fredericksburg, Marble Falls and Shiner, Texas to Parker Lumber, a Texas-based home improvement retailer.

The sale is expected to be finalized by year-end and as part of the agreement, all employees of the affected facilities will be offered employment by the new owner.

"The three centers being sold operate in small markets and derive a significant percentage of their sales from the retail customer," said Robert E. Mellor, President and Chief Executive Officer of Building Materials Holding Corporation. "BMHC is focused on professional builders and growth markets, expanding the value added products business and taking advantage of complementary repair and remodel opportunities. Although these three small centers have been profitable for the Company, this transaction will allow BMHC to redirect its financial resources to its primary strategies."

"I would like to acknowledge the important contributions made to the Company by the management and employees at Fredericksburg, Marble Falls and Shiner since the acquisition of these locations from Lowes in 1993. We are pleased that all personnel at these locations will be staying on under the new ownership and we will be working with the management of Parker Lumber to make the transition to new ownership as seamless as possible for both our employees and customers."

The transaction is expected to close late in the fourth quarter. The Company expects to report a small gain on the sale. However, the sale is not expected to have a material impact on the Company's financial results for the quarter or for the year 2000. The Fredricksburg, Marble Falls and Shiner locations account for approximately $20 million in sales for the Company on an annual basis.

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. Additional information on the Company can be obtained on its web site located at www.bmhc.com.