Release Details

GRAND RAPIDS, Mich.--(BUSINESS WIRE)--July 11, 2006--Universal Forest Products, Inc. (Nasdaq:UFPI) today announced that a wholly owned subsidiary has acquired a 50% interest in United Lumber & Reman LLC, an industrial wood manufacturing plant located in Muscle Shoals, Alabama. Universal also agreed to provide financing for United and plans to consolidate the company in its financial results.

United purchases low-grade lumber and prepares it for market through grading, sorting and manufacturing processes. Its products are used in a variety of industrial applications. The company's 2005 revenues were approximately $26 million. Universal has an option to purchase the remaining 50% of the company.

"United is a strong player in a market that provides us with excellent prospects for growth," said Universal CEO Michael B. Glenn. "We believe this business partnership provides us with great opportunity for increased presence and success in the industrial arena."

"Universal's strategy is to acquire successful companies with key players who agree to remain," Glenn added. "United's principals have created a great company and culture that we're proud to include as part of the Universal family. We also are proud to add the good people of United to our team."

United was founded in 2000 by owners Richard Pace and Delbert Brown and has approximately 60 employees. The company has a strong track record of success and excellent relationships in the industry.

"United understands and practices the values that Universal appreciates: honesty and integrity above everything; the customer is king; and the importance of treating employees fairly and with respect," said Universal Executive Chairman William G. Currie. "This partnership is sure to help us grow our industrial business in the region and nationwide."

"Our partnership with Universal will allow us to grow even stronger by leveraging Universal's purchasing power, adopting Universal's powerful business systems and processes and by combining the national industrial knowledge base of both companies to increase our opportunities," said Richard Pace. "We look forward to reaching new levels of success as a member of the Universal Forest Products team."

Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. The Company also provides framing services for the site-built sector. Universal has approximately 10,000 employees who work in more than 100 locations. Sales for 2005 were nearly $2.7 billion. For information about Universal, please visit the Company's Web site at http://www.ufpi.com , or call 888-Buy-UFPI.

CONTACT: Universal Forest Products, Inc.
Lynn Afendoulis, 616-365-1502

SOURCE: Universal Forest Products, Inc.