BOISE, Idaho, May 26 /PRNewswire-FirstCall/ -- Building Materials Holding Corporation (OTC Bulletin Board: BLGM), a leading provider of building materials and construction services to professional residential builders and contractors, today announced that it has received its anticipated $57 million federal tax refund for 2008.

In accordance with the Company's credit agreement, 70% of the refund was used to reduce borrowings under its term note. The remaining 30% of the refund was used to pay off its revolving credit facility and for working capital. As a result, as of May 22, 2009, there were no borrowings outstanding under the revolver and approximately $270.4 million outstanding under the term note.

Robert E. Mellor, Chairman and Chief Executive Officer, said, "The federal tax refund reduces debt outstanding under our credit agreement as we continue to actively work with our bank group on a plan for creating the best capital structure to support our long-term strategy and business objectives."

About BMHC

BMHC is one of the largest providers of building materials and residential construction services in the United States. We serve the homebuilding industry through two recognized brands: as BMC West, we distribute building materials and manufacture building components for professional builders and contractors in the western and southern states; as SelectBuild, we provide construction services to high-volume production homebuilders in key markets across the country. To learn more about BMHC, visit our website at www.bmhc.com.

BUSINESS RISKS AND FORWARD-LOOKING STATEMENTS

There are a number of business risks and uncertainties that affect our operations and therefore could cause future results to differ from past performance or expected results. Additional information regarding business risks and uncertainties is contained in Part II Item 1A of our most recent Form 10-Q. These risks and uncertainties may include, however are not limited to:

    --  substantial doubt about our ability to continue as a going concern;
    --  our existing common equity may have no value;
    --  demand for and supply of single-family homes which are influenced by
        changes in the overall condition of the U.S. economy, including interest
        rates, consumer confidence, job formation, availability of credit and
        other important factors;
    --  our ability to maintain adequate liquidity, reduce operating costs and
        increase market share in an industry that has experienced and continues
        to experience a significant reduction in average annual housing starts;
        --  our liquidity is dependent on operating performance, an efficient
            cash conversion cycle and compliance with financial covenants;
        --  our ability to implement and maintain cost structures that align
            with sales trends and
        --  losses of customers as well as changes in the business models of our
            customers may limit our ability to provide building products and
            construction services;
    --  intense competition;
    --  availability of and our ability to attract, train and retain qualified
        individuals;
    --  fluctuations in our costs and availability of sourcing channels for
        commodity wood products, concrete, steel and other building materials;
    --  weather conditions including natural catastrophic events;
    --  exposure to product liability and construction defect claims as well as
        other legal proceedings;
    --  disruptions in our information systems;
    --  actual and perceived vulnerabilities as a result of widespread credit
        and liquidity concerns, terrorist activities and armed conflict;
    --  costs and/or restrictions associated with federal, state and other
        regulations and


    --  numerous other matters of a local and regional scale, including those of
        a political, economic, business, competitive or regulatory nature.

Risks related to our shares may include, however are not limited to:

    --  price for our shares may fluctuate significantly;
    --  our shares may be less attractive as they are not traded on a large,
        more well-known exchange and


    --  anti-takeover defenses and certain provisions could prevent an
        acquisition of our company or limit share price.

Certain statements in this news release including those related to our restructuring initiatives and cost cutting efforts, our liquidity and negotiations with our lenders are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about our expectations, anticipated financial results and future business prospects are forward-looking statements. While these statements represent our current judgment on what the future may hold and we believe these judgments are reasonable, these statements involve risks and uncertainties that are important factors that could cause our actual results to differ materially from those in forward-looking statements. These factors include, however are not limited to the risks and uncertainties cited in the above paragraph, as well as our ability to timely and successfully implement our restructuring program and achieve the benefits that the program is designed to provide, including preserving value, enhancing our liquidity, reducing expenses and generating cash proceeds. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date of this news release. We undertake no obligation to update forward-looking statements.

SOURCE Building Materials Holding Corp.