Third Quarter Financial Highlights (unaudited)
                      ----------------------------------------------

                   Third Quarter   Diluted    Third Quarter   Diluted
                       2009       Per Share        2008      Per Share
                       ----       ---------        ----      ---------


 Sales            $ 188.9 million            $ 266.0 million
  Gross margin        20.90%                      21.20%

 Loss from
  continuing
  operations
  before income
  taxes           $(15.8) million     $0.44) $(20.1) million    ($0.56)
 Income tax
  expense (benefit)   0.1 million     (0.00)   (4.5) million     (0.12)
                  --------------- ---------  --------------- ---------
 Loss from
  continuing
  operations       (15.9) million     (0.44)  (15.6) million     (0.44)

 Income (loss)
  from
  discontinued
  operations, net
  of tax              0.7 million      0.02    (3.3) million     (0.09)
                  --------------- ---------  --------------- ---------
  Net loss        $(15.2) million    ($0.42) $(18.9) million    ($0.53)

 Included in the
  calculation of
  loss from
  continuing
  operations:
  Tax valuation
   allowance        $ 6.2 million    $ 0.17    $ 3.2 million    $ 0.09

 Adjusted loss
  from continuing
  operations       $(9.7) million    ($0.27) $(12.4) million    ($0.35)

 Other metrics:
 Adjusted EBITDA   $(4.8) million            $ (6.1) million
 Cash              $ 96.3 million            $ 131.2 million
 Available
  Liquidity        $ 92.0 million            $ 154.5 million
 Cash used         $ 15.8 million            $  12.0 million

"Housing starts made a slight recovery early in the quarter as the national seasonally adjusted annual rate for single-family starts increased to 506,000 in July, but then softened as the quarter progressed. The quarter ended at a seasonally adjusted annual rate of 501,000, down 8.7 percent from the annual rate of 549,000 one year ago, and down 72.5 percent from the peak of 1,823,000 in the first quarter of 2006. National single-family starts for the quarter were 137,800, down 15.5 percent from starts of 163,000 during the third quarter of 2008," said Floyd Sherman, Builders FirstSource Chief Executive Officer. "We believe the momentum seen early in the quarter was largely due to the first time home buyer tax credit contained in the economic stimulus package. We expect to see starts continue to fall off as the December 1st expiration date of this program nears and as we enter the seasonal building trough."

Mr. Sherman continued, "As in previous quarters, our primary focus continues to be on prudently growing market share, adjusting staffing levels, monitoring our physical capacity, and protecting liquidity. Net sales for the quarter were $188.9 million, down $77.1 million, or 29.0 percent, compared to $266.0 million in the third quarter of 2008. While the rate of decline for single-family starts slowed during the quarter, down only 15.5 percent, single-family units under construction fell 33.8 percent from the third quarter of 2008. We estimate that market share losses reduced our sales for the quarter by approximately 8 percent, the result of an extremely competitive pricing environment. However, for the year, we estimate that market share growth has added over 6 percent to our sales. Rather than focus solely on top line sales growth, we have endeavored to protect gross margins and avoid unnecessary credit risks to the detriment of market share growth. Our average full-time equivalent headcount for the quarter was 3,100, down 38.4 percent from a year ago, and our salaries and benefits expense flexed approximately 100 percent with our sales decline. The reductions in payroll costs coupled with our other cost reductions allowed us to reduce our selling, general and administrative ("SG&A") expenses by $20.3 million, or 29.2 percent. As a percentage of sales, SG&A expenses were 26.1 percent, consistent with the third quarter of 2008 on $77.1 million less sales. Our facility count remained constant as there were no closures during the current quarter. Net cash used during the current quarter was $15.8 million compared to $12.0 million in the third quarter of 2008, excluding revolving credit facility activity and income tax refunds. Included in cash used for the current quarter was $4.5 million in annual insurance premiums and $0.5 million of lease termination payments. As expected, working capital was not a source of cash due to higher sales on a sequential quarter basis."

Charles Horn, Builders FirstSource Senior Vice President and Chief Financial Officer, added, "Although sales were down $77.1 million from the prior year, we reduced our loss from continuing operations before income taxes by $4.3 million, or $0.12 per diluted share. Gross margins fell 0.3 percentage points, from 21.2 percent to 20.9 percent year-over-year, primarily due to lower sales volume against fixed costs in cost of goods sold. On a sequential quarter basis, gross margin fell 1.5 percentage points primarily due to pricing. Pricing pressure during the quarter was the most intense we have seen since the downturn began over three years ago. We were, however, able to reduce SG&A expenses commensurate with our decline in sales. In fact, our SG&A expenses actually decreased on a percentage basis slightly better than our sales decline, primarily due to head count reductions and a significant decline in bad debt expense during the quarter."

Mr. Horn continued, "As expected, our liquidity dropped during the quarter as we did not monetize any working capital to offset our operating losses and cash interest expense. In addition, we paid $4.5 million in annual insurance premiums during the quarter. We ended the quarter with available liquidity of $92.0 million, which consisted of cash of $96.3 million less $4.3 million on deposit supporting a shortfall in the calculation of our $35 million minimum liquidity covenant. Our seasonal advance rates under the revolving credit facility dropped in September reducing our borrowing availability by $2.8 million. These advance rates will increase again in March 2010. Our asset utilization remained strong, however, as our working capital expressed as a percentage of sales was 9.1 percent, excluding cash and income tax receivables, down from 11.0 percent in the third quarter of last year. Accounts receivable days decreased to 36.4 days for the quarter from 41.2 days last year as we were successful in collecting older accounts and reducing our overall delinquency rate. Our inventory turns for the quarter improved to 10.5x from 8.6x last year. Partially offsetting these improvements, accounts payable days fell to 28.9 days from 33.1 days last year primarily due to a continued shift in sales mix toward installed product sales. Our focus on working capital management resulted in cash conversion days dropping to 42.4 days for the quarter, an 8.3 day improvement over the third quarter of 2008."

Third Quarter 2009 Results Compared to Third Quarter 2008

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

 * Sales were $188.9 million compared to $266.0 million last year, a
   decline of $77.1 million or 29.0 percent. Our sales volume dropped
   an estimated 26 percent compared to an estimated 18 percent decline
   in housing starts in our markets, signifying a market share loss
   during the current quarter. We have sacrificed sales and market
   share growth in an effort to protect gross margins and maintain
   tight credit standards.

 * Gross margin percentage was 20.9 percent, down from 21.2 percent, a
   0.3 percentage point decrease. Specifically, our gross margin
   percentage increased 0.4 percentage points due to price, but
   decreased 0.4 percentage points due to volume (a result of fixed
   costs within costs of goods sold) and 0.3 percentage points due to a
   shift in sales mix toward lower-margin installed product sales.

 * SG&A expenses decreased $20.3 million, or 29.2 percent.  As a
   percentage of sales, SG&A expense decreased from 26.2 percent in
   2008 to 26.1 percent in 2009, on $77.1 million less sales. Average
   full-time equivalent employees for the third quarter 2009 were
   3,100, down 38.4 percent from the third quarter 2008 average.  Our
   salaries and benefits expense, excluding stock compensation expense,
   fell $11.0 million, or 28.0 percent. This decline was over 100
   percent variable with our sales volume decline of 25.8 percent.
   Delivery expenses fell $3.7 million, or 27.1 percent, Office G&A
   expenses fell $1.5 million, or 21.4 percent, and bad debt expense
   fell $1.1 million.

 * Interest expense was $5.9 million in the current quarter, a decrease
   of $0.2 million from the third quarter of 2008.

 * Loss from continuing operations before income taxes was $15.8
   million, or a loss of $0.44 per diluted share, compared to $20.1
   million, or a loss of $0.56 per diluted share, in the third quarter
   of 2008.

 * We recorded tax expense of $0.1 million, or a 1.0 percent tax rate,
   during the quarter compared to a benefit of $4.5 million, or a 22.2
   percent tax benefit rate, in the third quarter of 2008. Our benefit
   was reduced by an after-tax, non-cash valuation allowance of $6.2
   million, or $0.17 per share, and $3.2 million, or $0.09 per share,
   related to our net deferred tax assets for the third quarter of 2009
   and 2008, respectively. Absent this valuation allowance, our tax
   benefit rate would have been 38.5 percent for the third quarter of
   2009 and 38.0 percent for the third quarter of 2008.

 * Loss from continuing operations was $15.9 million, or $0.44 loss per
   diluted share, compared to a loss of $15.6 million, or $0.44 loss
   per diluted share in the same quarter last year.