Building Materials Holding Corporation to Join Russell 3000 Index.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--June 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 been chosen to join this year's Russell 3000 Equity Index, according to the list distributed by Frank Russell Company last week.

The addition of Building Materials Holding Corporation stock to the Index is part of the annual reconstitution and will take effect on July 1. The Russell 3000 Index measures the performance of the 3000 largest U.S. stocks based on total market capitalization. Membership in Russell's 21 Indexes, which are used as benchmarks for both passive and active investment strategies, is determined strictly by market capitalization rankings rather than by subjective opinion or committee decisions.

"We are very pleased to be joining the Russell 3000 Index," said Robert E. Mellor, President and Chief Executive Officer of Building Materials Holding Corporation. "The increase in BMHC's market capitalization over the last year reflects the success of our strategy of focusing on growing our value-added products and services, maintaining strict acquisition criteria and continuing to deliver superior service to our professional builder customers."

Building Materials Holding Corporation is a leader in the residential construction market, specializing in providing high quality, manufactured building products and value-added installation and framing services to professional residential builders and contractors. BMHC operates through its subsidiaries BMC West Corporation and BMC Framing Inc., with 133 facilities organized into 55 business units. BMC Framing holds a 49% equity interest in Knipp Brothers Industries, LLC, a leading framing contractor operating in Arizona, California and Nevada. 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 the its customers.

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; increases in raw materials and labor costs; consumer confidence; 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.