Cameron Ashley to be Partner In BuildNet's e-Business Solution; Will Be a Strategic Investor and Serve as Beta Site.

Business & Internet Editors

DALLAS--(BUSINESS WIRE)--Jan. 6, 2000

Cameron Ashley Building Products, Inc. (NYSE:CAB) announced today that it will be a strategic minority investor in, and participate as a beta test partner with, BuildNet, one of the building industry's leading internet-based business-to-business e-business solutions. As BuildNet is rolled out in 2000, the system will enable participants to engage in 24-hour electronic commerce, allowing them to place orders and check inventory availability, delivery and payment information on a real-time basis.

Ronald R. Ross, Chairman and Chief Executive Officer of Cameron Ashley, said, "We are extremely excited to have been selected as a beta site for the roll-out of BuildNet. BuildNet has achieved "First Mover" status by assembling the critical mass of premier homebuilders and suppliers to create the first end-to-end e-business solution for the building industry. We believe the selection of Cameron Ashley as a beta site testifies to our commitment to advance technological innovation in the industry, and places us in very esteemed company."

Mr. Ross added, "We are in the final phases of installing our state-of-the-art, $23 million enterprise resource planning system. Completing this project is a critical first step in developing our electronic commerce capability. The teaming up with BuildNet as a beta test partner will allow us to jumpstart our e-business initiative by providing linkage to the largest home builders and contractors in the country along with many of our major vendors. We believe this will ultimately translate into improved service for our customers and enhanced productivity in our operations."

"BuildNet began the process of building an internet-based community in May 1999, when it aggregated a one-third market share of builders," said Keith T. Brown, BuildNet Chairman. "Since that time, forward-looking companies in the building materials supply chain, like Cameron Ashley, have seen the benefits of reaching that community through an internet-based e-business system that seamlessly links the builders' back offices to their own back offices and ERP systems. We welcome this partnership and look forward to working with Cameron Ashley to bring maximum efficiency to the home building industry."

In its capacity as a strategic investor in BuildNet, the Company will participate in BuildNet's Advisory Council. Mr. Ross concluded, "Our participation in BuildNet's Advisory Council will give Cameron Ashley a valuable insight into, and position us to help shape, the way business in the building industry will be conducted in the Twenty First Century."

Cameron Ashley Building Products, Inc. is a distributor of a broad line of building products that are used principally in home improvement, remodeling and repair work and in new residential construction. The Company distributes its products to independent building material dealers, professional builders, large contractors and mass merchandisers through a network of 165 branches located throughout the United States and Canada. Product lines include roofing, millwork, pool and patio enclosure materials, insulation, siding, steel products, industrial metals and a variety of other building materials.

BuildNet, a privately held company based in Research Triangle Park, NC, is one of the $240+ billion home building industry's largest e-business, technology, and project management system providers. BuildNet's internet-based e-business platform is being developed to provide home builders access to an integrated on-line network designed to change the residential construction market by availing every aspect of a building project to real-time, on-line, integrated e-business links, from the builder's back offices to the back offices of a wide range of product suppliers. (This is commonly called "business-to-business e-commerce.") Through its five project management systems, BuildNet products currently manage the construction of around one in three homes built in the U.S.

Certain statements in this release are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be indicated by phrases such as "believes", "anticipates", "expects", "intends", "foresees", "projects", "predicts", "forecasts" or similar words and are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among the key factors that could cause results to differ materially are: (i) business and economic conditions in North America, (ii) business and economic conditions in the regional markets in which the Company operates, (iii) adverse homebuilding conditions including those related to weather and interest rates, (iv) the ability to make acquisitions at reasonable prices and achieve operating efficiencies upon integration, (v) reliable and cost-effective supply of products from manufacturers, and (vi) technology risks in implementing new and/or converting existing information systems. These risks are more fully described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligations to update the information contained herein, which speaks only as of this date.

Note: More information on Cameron Ashley Building Products can be found on the Wide World Web at http://www.cabp.com.