First Quarter Financial Highlights (unaudited)               ----------------------------------------------                                                                                                                            Diluted                 Diluted                         First Quarter   Per    First Quarter    Per                               2009       Share       2008        Share                              ----      -------      ----       -------  Sales                  $163.8 million          $259.9 million          Loss from continuing                                                    operations           $(30.4) million $(0.85) $(15.3) million $(0.43)  Loss from                                                               discontinued                                                           operations,             net of tax           $ (0.1) million $(0.00) $ (0.6) million $(0.02)  Net loss              $(30.6) million $(0.85) $(15.8) million $(0.45)                                                                         Included in the                                                         calculation thereof:                                                    Facility closure                                                        costs                $ 0.6 million $  0.01   $ 0.1 million $  0.00    Debt issue costs                                                        write-off            $ 1.2 million $  0.02   $ 0.0 million $  0.00    Tax valuation                                                           allowance            $12.9 million $  0.36   $ 0.0 million $  0.00                                        -------                 -------                                        $  0.39                 $  0.00                                                                         Other metrics:                                                         Adjusted EBITDA       $(13.7) million         $(10.2) million          Cash used             $   4.3 million         $  15.7 million 

"The first quarter of 2009 saw a continued decline in housing activity as actual single-family housing starts dropped to 78,200 from 161,900 in the same period of 2008, a 51.7 percent decline. This percentage decline is the largest year-over-year change since the housing correction began in March 2006, exceeding the record-setting decline of 45.0 percent in the fourth quarter of 2008," said Floyd Sherman, Builders FirstSource Chief Executive Officer. "The annualized rate for single-family starts at the end of the current quarter was 358,000, down 49.6 percent from the annualized rate of 711,000 one year ago."

Mr. Sherman continued, "Our action plan of conserving cash, growing market share, reducing physical capacity, adjusting staffing levels, implementing cost containment programs, and prudently managing credit continues to help us mitigate the impact of the sluggish housing market on our operations. For the current quarter our net cash used was only $4.3 million. This is down from net cash used of $15.7 million during the first quarter of 2008, and consistent with $4.3 million of net cash used during the fourth quarter of 2008, excluding the $20 million repayment on our revolving credit facility. Given the continued deterioration of the housing market over this time period and its corresponding impact on our sales, we consider this a significant accomplishment and further validation of our operating strategy. Market share gains and further penetration into the multi-family and light commercial segments reduced our sales decline compared to the first quarter of 2008 by an estimated 17 percent. From a capacity standpoint, we closed one distribution center and one truss facility during the current quarter. Our average full-time equivalent headcount for the quarter was 3,169, down 38 percent from the first quarter of 2008, and down 22 percent from the fourth quarter. The reductions in payroll costs coupled with our other cost reductions allowed us to reduce our selling, general and administrative expenses by 29 percent, or approximately 88 percent variable with our sales volume decline of 33 percent. Our bad debt expense was $1.2 million, or 0.7 percent of sales, in the current quarter, down from $1.6 million, or 0.8 percent of sales, in the fourth quarter of 2008."

Charles Horn, Builders FirstSource Senior Vice President and Chief Financial Officer, added, "We ended the quarter with over $102 million in cash, of which $83.5 million was available for operations. Protecting liquidity has been a principal component of our action plan since the beginning of the housing downturn thirty-six months ago. We were successful in protecting our liquidity as our net cash used was only $4.3 million during the current quarter. Our working capital as a percentage of sales was 13.0 percent, excluding cash and income tax receivables, which is consistent with the first quarter of 2008, and our accounts receivable days improved from 41.9 days to 41.0 days." Horn continued, "Our goal is to continue paring operating expenses during 2009. Specifically, we are targeting a 10% reduction in our average full-time equivalent employees by the end of the second quarter, which would lower annual payroll costs by approximately $14 million. This reduction is contingent upon actual market conditions. In addition, we are endeavoring to lower our lease expense by returning excess rolling stock and negotiating rent abatements with certain landlords. Currently, we are unable to quantify the potential savings."

First Quarter 2009 Results Compared to First Quarter 2008

(See accompanying financial schedules for full financial details and reconciliations of Non-GAAP financial measures to their GAAP equivalents.)

    * Sales were $163.8 million compared to $259.9 million last year, a    decline of $96.1 million or 37.0 percent. Our sales volume    dropped an estimated 33 percent compared to an estimated 50    percent decline in housing starts in our markets, signifying a    contribution from market share gains and incremental multi-family    and light commercial sales of an estimated 17 percent.   * Gross margin percentage was 20.9 percent, down from 22.3 percent,    a 1.4 percentage point decline. Specifically, our gross margin    percentage declined 0.3 percentage points due to price, 0.6    percentage points due to volume (fixed costs in costs of goods    sold), and 0.5 percentage points due to a shift in sales mix    toward lower-margin installed product sales.   * Selling, general and administrative ("SG&A") expenses decreased    $21.8 million, or 28.6 percent. As a percentage of sales,    however, SG&A expense increased from 29.3 percent in 2008 to 33.2    percent in 2009 which is reflective of fixed cost items becoming    a larger percentage of our SG&A. Average full-time equivalent    employees for the first quarter 2009 were 38 percent lower than    the first quarter 2008, and down 22 percent from the fourth    quarter. Our salaries and benefits expense, excluding stock    compensation expense, fell $13.6 million, or 31.3 percent. This    decline was 95 percent variable with our sales volume decline.    Delivery expenses fell $4.1 million, or 28.9 percent.   * Interest expense was $7.5 million in the current quarter, an    increase of $1.1 million over the year ago quarter due to the    write-off of $1.2 million in debt issue costs related to the    reduction of our revolving credit facility from $350 million to    $250 million.   * We recorded tax expense of $2.1 million, or a 7.5 percent tax    rate, during the quarter compared to a tax benefit of $9.5    million, or 38.3 percent tax benefit rate, in the first quarter    of 2008. Our benefit for the current quarter was reduced by an    after-tax, non-cash valuation allowance of $12.9 million, or    $0.36 per share, related to our net deferred tax assets. Absent    this valuation allowance, our tax benefit rate would have been    38.1 percent.   * Loss from continuing operations was $30.4 million, or $0.85 loss    per diluted share, compared to $15.3 million, or $0.43 loss per    diluted share. Excluding the valuation allowance, facility    closure costs, and the write-off of debt issue costs, our loss    from continuing operations per diluted share was $0.46 for the    current quarter.   * Our loss from discontinued operations for the first quarter of    2009 was $0.1 million, or $0.00 loss per diluted share, compared    to $0.6 million, or $0.02 loss per diluted share for the first    quarter of 2008.   * Net loss was $30.6 million, or $0.85 loss per diluted share,    compared to net loss of $15.8 million, or $0.45 loss per diluted    share.   * Diluted weighted average shares outstanding were 35.8 million    compared to 35.5 million.   * Adjusted EBITDA was a loss of $13.7 million compared to a loss of    $10.2 million last year. See reconciliation attached. 

Liquidity and Capital Resources

    * Our cash on hand was $102.6 million at March 31, 2009. Due to the    decline in sales and the corresponding reduction in our trade    receivables and inventory which support our borrowing base, our    net borrowing availability at March 31, 2009 was zero.    Approximately $19.1 million of cash on hand at March 31, 2009    supported a short-fall in the calculation of the $35 million    minimum liquidity covenant contained in our credit agreement.    This covenant calculates as eligible borrowing base minus    outstanding borrowings, and the resulting amount must exceed $35    million or the Company is required to meet a fixed charge    coverage ratio, which we currently would not meet. The    calculation of minimum liquidity allows cash on deposit with the    agent to be included as eligible borrowing base.