Building Materials Holding Corp. To Combine BMC West and SelectBuild Operations

05/15/2008

SAN FRANCISCO -- Building Materials Holding Corporation, a provider of building materials and construction services to professional residential builders and contractors, announced plans to that it will combine the operations of BMC West and SelectBuild. BMHC hopes to save up to $25 million by streamlining the two companies.

"We are conducting a comprehensive analysis of our business and developing an initial plan for improved profitability and cash flow to right-size the organization to reflect today's homebuilding market," said Robert E. Mellor, Chairman and Chief Executive Officer. "While there are considerable external pressures on the markets we serve, our Board and management team are committed to making internal changes designed to minimize the impact of the downturn while positioning our company for growth as the market improves."

The realignment flattens BMHC's organizational structure by reducing its existing 13 regions into 7 regions:

--Intermountain (Colorado, Idaho, Montana, Utah)
--Midwest (Illinois)
--Northwest (Oregon, Washington)
--Pacific (California, Northern Nevada)
--Southeast (Florida)
--Southwest (Arizona, Southern Nevada)
--Texas

The company said it will shut down several underperforming business units, and may target additional closures. Together the underperformers employ upwards of 2,000 employees.