Universal Forest Products Signs Letter of Intent with Aljoma Lumber, Inc.; Gives Universal Significant Presence in Southern Florida and the Caribbean

GRAND RAPIDS, Mich.--(BUSINESS WIRE)--Sept. 8, 2006--Universal Forest Products, Inc. (Nasdaq:UFPI) today announced that it has a signed non-binding letter of intent to acquire all of the shares of Aljoma Lumber, Inc., a leading manufacturer of pressure-treated wood and industrial products that serves Southern Florida and the Caribbean islands.

Aljoma's 2005 sales were approximately $230 million. The company is headquartered in the Miami suburb of Medley, Florida. The acquisition is expected to close after the company's due diligence process and approval by its Board of Directors.

“Aljoma is a solid strategic and geographic fit for Universal”

With the purchase, Universal will have a strong presence in the Southern Florida market for its treated wood, fencing, and its growing portfolio of consumer products, and will open new opportunities for those products in the Caribbean market.

"Aljoma is a solid strategic and geographic fit for Universal," said Michael B. Glenn, Universal's President and Chief Executive Officer. "We look forward to adding Aljoma's capabilities and success to our company and to offering our growing portfolio of products - from decking to post caps to fencing - to the thriving Southern Florida and Caribbean markets."

"For years, we've considered Universal a great fit for our company, our customers, and our people," said David Flinn, Aljoma's Chief Financial Officer. "We look forward to closing this transaction in the near future and offering the breadth and depth of Universal's products and service to our customers."

Founded in 1976, Aljoma has grown to become the leading supplier of treated wood and other wood products in Southern Florida. Its customers include home centers, distributors and manufacturers throughout the United States, Canada, and the Caribbean. The company employs approximately 400 people at its Medley, FL facility.

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.