Centex Homes to Eliminate Use of Wood From Endangered Forests; Vendor Policy to Encourage Environmentally Sound Timber Supply.

Business Editors

DALLAS--(BUSINESS WIRE)--March 28, 2000

Centex Homes, one of the nation's leading residential home builders, announced today it intends to eliminate the use of wood originating from endangered forests in its home building operations.

As a first step, the company is encouraging its forest product suppliers to accelerate the certification of environmental practices when providing wood and wood products for the construction of its homes throughout the country.

Centex Homes' vendor policy is an extension of its ongoing environmental commitment through national support for The Nature Conservancy, a non-profit organization dedicated to the preservation of natural habitat and ecological resources. The new vendor policy is as follows:

"To ensure that wood and wood-related products used in Centex

Homes construction are coming from renewable sources, Centex Homes

will give preference to wood products coming from vendors who

subscribe to sustainable forestry management and certification

programs. Examples of these programs include the American Forest

and Paper Association (AF&PA) Sustainable Forestry Initiative 

(SFI), the Forest Stewardship Council (FSC) certification program,

the Canadian Standards Association (CSA) Sustainable Forest

Management System Standard (CAN/CSA Z808-96) or the International

Standards Organization (ISO) 14001 EMS Program."

Paul Dodge, vice president of purchasing for Centex Homes, said, "We recognize that systems are being developed that will identify and track the source of all wood. Hopefully, this action will help expedite this development. Our company is well known for encouraging the use of best practices in its operations. Our culture embraces the concept of efficiency and responsibility in the products we provide to customers. Requiring the same from our vendors is consistent with this philosophy."

Wood continues to be the preferred building material for homebuyers. Balancing this consumer demand with environmentally sound construction practices has been a priority for Centex Homes throughout its operations. This is evidenced through Centex Homes' efforts to develop construction practices that make use of alternative materials and engineered wood products from renewable resources. For example, Centex Homes:

-- Is one of the top three users of environmentally friendly

finger joint studs in North America, a practice that reduces

virgin wood use.

-- Uses OSB sheathing and underlayment (not plywood) in more than

90 percent of its markets.

-- Uses trusses extensively in home building (a practice

recommended by preservation groups).

-- Is actively replacing wood products on the exterior of its

homes with a variety of non-wood products and composites.

-- Is building more than 90 percent of its homes with metal or

fiberglass exterior doors.

-- Primarily uses steel and vinyl windows in its homes.

-- Is using engineered wood I-joists, laminated veneer lumber and

parallam beams to replace solid wood joists and beams in its

homes.

Centex Homes has established a Responsible Construction Task Force to work with forest product suppliers to ensure compliance with renewable resources and sound forest management practices in timber products supplied to the company.

Centex Homes is a subsidiary of Dallas-based Centex Corporation (NYSE:CTX), recently named one of "America's Most Admired Companies" by 'FORTUNE' magazine. Centex, through other subsidiaries, ranks as one of the nation's largest non-bank-affiliated retail mortgage loan originators and general building contractors. Centex also has operations in investment real estate and owns a majority interest in a publicly held construction products company.