BuildDirect is an online business-to-business destination for volume sales in professional building materials. BuildDirect has created a revolutionary new sales channel that is transforming the traditional building materials supply chain. Based on a unique direct distribution model, BuildDirect reduces or eliminates multiple levels of mark-up in current wholesale channels and offers unparalleled savings to volume purchasers. BuildDirect's patent-pending logistics platform eliminates the need for distribution warehouses and allows BuildDirect to fulfill customer orders based on a "rolling inventory." Through its online WebStore, telephone and fax, BuildDirect provides its customers with a one-stop full-service purchasing environment that includes comprehensive product information and specifications, warranty support and live customer service.

VANCOUVER, BC, Jan. 24, 2002 - British Columbia's wood manufacturers have added a powerful e-commerce system to their international marketing strategy. BC Wood, a not-for-profit trade association with over 600 value-added wood-product manufacturers in the province, today signed a partnering agreement with BuildDirect, the Vancouver-based world online building materials distributor. The agreement creates for the first time a single Internet source for the sale and delivery of BC-manufactured wood products. . "This agreement provides our members with an outstanding new opportunity to sell directly into foreign markets," said Bill Downing, General Manager of BC Wood. "BuildDirect's Internet platform is the world's leading technology for the sale and shipment of building products, and BuildDirect's one-stop customer service is the perfect business model for our diverse and geographically dispersed manufacturers," Downing said. "At a time when many BC communities are suffering from the crisis in BC's primary forest industry, this is especially good news for the value-added wood products sector," Downing added. "We're confident that this new initiative will help the economies of many BC communities," Downing said. British Columbia's value-added wood product manufacturers employ over 20,000 people and represent $4.68-billion in exports. Industry growth is projected to double sales in less than seven years to $10-billion. However, Downing said he is confident the BuildDirect e-commerce initiative will result in sales exceeding that figure, which is based on "an already healthy 10 per cent growth annually." "Having our members sell products with BuildDirect allows them to capitalize on a huge potential," Downing said. BuildDirect President Jeff Booth said the alliance with BC Wood is a major development for his company. BuildDirect launched its international sales only three months ago, after two and a half years of building and testing the procurement and logistics Internet technology designed specifically for the global construction industry. "BC Wood is bringing us customers from their markets in China, India, Korea, Germany, Japan and the United States," said Booth. "At the same time, BC Wood is also bringing us excellent suppliers that already have good reputations around the world for value and quality."

Established in 1989, BC Wood is a not-for-profit association with a membership of over 600 British Columbia value-added wood product manufacturers whose focus is to address the needs of small to medium-sized, growth-oriented firms, with essential training and marketing assistance not available from any other source. BC Wood has representative offices in China, Germany, India, Japan and the US. BC Wood currently maintains representative offices in China, India, Germany, Japan, and United States. On behalf of its member manufacturers of British Columbia value-added wood products, BC Wood is engaged in a wide range of international marketing activities including: foreign market research and development; incoming buyers' missions; participating in tradeshows; and promoting BC companies through our various value-added wood showrooms. BC Wood activities in key international markets include: China: BC Wood partners with the Council of Forest Industries, Quebec Wood Export Bureau, and CMHC International in promoting Canadian-manufactured wood products.

BC Wood's marketing activity is focused on niche markets and is targeting high-growth sectors. BC Wood's current strategy involves the promotion of packages of products rather than individual products. India: The total wood industry consumption is 5-billion (US), with imports currently at $750-million (US) and growing at 25 per cent annually. BC Wood's strategy in India at present is to: focus on high-end interior finishing products; target India's hospitality industry; establish a showroom and encourage projects demonstrating the use of Canadian products. Japan: T he total building products market is $74-billion (US), consuming 16-million cubic metres of finished wood annually. Japan's renovation market is projected to grow from $48-billion (US) to $76-billion by 2015. BC Wood is an established and respected force in the continuing promotion of Cnadaian wood products in Japan, through our showroom in Osaka, active tradeshow and mission participation, and through our New Market Entry Program. Europe: With a new market representative headquartered in Germany, BC Wood researches markets across Europe and coordinates trade shows and incoming missions for member companies. BC Wood will continue to build on its members historically strong markets in wood products, pre-fabricated homes and log structures. USA:

The United States continues to be Canada's largest trading partner and the number one export market for British Columbia wood products. With a full-time representative in the Pacific Northwest, BC Wood continues to research new product demand and to promote its full range in seven product sectors: Cabinetry; Engineered Building Components Factory Built and Pre-fabricated Structures; Furniture and Fixtures; Millwork Products; Remanufactured Products; Specialty Items. China's demand for wood building-products is increasing steadily as the country continues to expand its new commercial and residential construction. In the past four years, 200,000 new hotels and restaurants have been built, and 750 wood-frame houses. The current value of interior finishings is $21-billion annually. BC Wood, in conjunction with the federal government of Canada and CMHC International, is targeting the China market where there is the highest growth potential for wood buildings and building materials. The Shanghai region is extremely active in new construction, and demand for interior "decorative" building products has dramatically increased in this region due to new government policies and recent changes in construction legislation there. In the past, apartment buildings were constructed with no interior finishings (eg: cabinets, lighting fixtures, flooring, mouldings) but developers are now required to subcontract the installation of all interior finishings. This has resulted in highly beneficial opportunities for our exporters because China's building industry is now encouraged to buy these products in volume orders.

BuildDirect's e-commerce procurement and logistics model will mean more competitive pricing for BC-manufactured wood products. The China market represents a vast potential for sales of BC Wood's seven product sectors: Cabinets; Engineered Building Components; Factory Built and Pre-fabricated Structures; Furniture and Fixtures; Millwork Products; Remanufactured Products (semi-finished) and Specialty Items. Through BuildDirect's state-of-the-art WebStore, customers are able to access all of the key information required to facilitate purchasing decisions. BuildDirect's WebStore is tailored to the unique needs of the construction market. Multiple product views, product specifications, installation and maintenance instructions, technical data, and visual schematics create a full-service purchasing environment. BuildDirect's proprietary cataloguing system allows customers to easily search the entire product database based on industry standard codes, product categories, and keyword searches. Integrated project management tools allow customers to build a 'worksheet' of selected products, dynamically change order parameters and create printable quotes. This data can also be stored along with the customer's own securely encrypted account information for future access. BuildDirect's patent-pending transportation logistics software instantaneously calculates the total cost of delivery for single or multiple orders to any client-specified location in the U.S. or Canada and more than 80 overseas destinations. BuildDirect has integrated this proprietary software into its WebStore to give customers the advantage of automated efficiency in routing and mode of transportation. By accessing an expansive database of shipping and product information, and utilizing proprietary "virtual loading" algorithms, BuildDirect's logistics technology is able to optimize truck and container loads and determine the most cost effective point of distribution and mode of transportation. It also provides customers with instant calculation on transportation costs, tariffs and duties, before they place their order.

Dan Brodie, BuildDirect