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BuildNet, Beazer Homes Enter Into E-Commerce Alliance

May 12, 2000 at 12:09 PM EDT

BuildNet to Supply Beazer Homes With Integrated Connectivity to its E-Hub; Beazer to Encourage Adoption Among its Allied Trading Partners

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--May 12, 2000--BuildNet, Inc., a leading provider of management software to homebuilders and suppliers in the residential construction industry, today announced that it has entered into a contract with Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) to provide business-to-business electronic commerce services. The contract also provides Beazer Homes with incentives to encourage adoption of the BuildNet E-Building Exchange among its trading partners, subcontractors and suppliers. Beazer is also an equity investor in BuildNet, and is the first of the Big Ten builders to enter into an agreement of this nature with an e-commerce company.

Under the agreement, BuildNet has agreed to provide Beazer Homes with business server connectivity and e-commerce solutions, including the capability to request prices and quotes, issue purchase orders and process invoices. BuildNet plans to link Beazer Homes' JD Edward Homebuilder enterprise resource planning (ERP) system, one of seven BuildNet project management solutions, to the ERP systems of Beazer Homes' suppliers through the BuildNet E-Building Exchange. BuildNet will also provide training to help Beazer Homes reliably send transactions to its suppliers.

"Beazer Homes is among America's premier and most technologically advanced home builders," said Nathan Morton, BuildNet CEO. "This agreement between BuildNet and Beazer Homes demonstrates their commitment to a true back-office to back-office system, a system that should allow Beazer Homes to view their suppliers' latest product offerings and integrate those offerings into their ERP system, all in real-time using the Internet."

The agreement provides Beazer Homes with incentives to assist BuildNet with adoption of the BuildNet E-Building Exchange among Beazer Homes' suppliers and help encourage adoption of BuildNet among Beazer Homes' subcontractors. For suppliers and subcontractors who will be BuildNet enabled, the agreement also provides Beazer Homes with incentives to make efforts to conduct all its electronic commerce transactions with them through the BuildNet E-Building Exchange.

"Through our clicks-and-sticks initiative, Beazer Homes is committed to being the leader in embracing technological changes in the homebuilding industry," said Ian McCarthy, Beazer Homes President and CEO. "Our alliance with BuildNet, the system supplier for 43 percent of the homes built in the U.S., is a major part of that commitment."

About Beazer Homes USA, Inc.

Beazer Homes USA, Inc., based in Atlanta, Georgia, is one of the country's ten largest single-family homebuilders, with operations in Arizona, California, Florida, Georgia, Maryland, Nevada, New Jersey, North Carolina, South Carolina, Tennessee, Texas and Virginia. Beazer Homes also provides mortgage origination services for its homebuyers through Beazer Mortgage Corporation, and title and escrow services in certain markets. The company has been doing business in the United States since 1985 and was listed on the New York Stock Exchange (NYSE: BZH) in February 1994.

About BuildNet, Inc.

BuildNet, Inc., located in Research Triangle Park, N.C., is a leading provider of management software to homebuilders and suppliers in the residential construction industry. BuildNet's objective is to be the business-to-business e-commerce solution for the residential construction industry. To reach that objective, BuildNet has designed the BuildNet E-Building Exchange to provide secure Internet-based procurement, e-commerce, and information services for homebuilders, suppliers, and manufacturers. The BuildNet E-Building Exchange will allow users to confirm pricing and product specifications, place purchase orders, and add both product and order information automatically to builders' and suppliers' management systems. In addition, manufacturers will be able to place product information and catalogs on the BuildNet E-Building Exchange for access by homebuilders and suppliers. BuildNet is testing the BuildNet E-Building Exchange and expects to initiate a limited market rollout in two cities during the second quarter of 2000 and plans to commence a commercial rollout in an additional four to six cities in the second half of 2000. BuildNet's aggregated software customer base includes homebuilders that accounted for approximately 43 percent of 1999 U.S. single-family home closings. Learn more about BuildNet by visiting www.buildnet.com

This press release contains forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including BuildNet's limited Internet operating history, the development and rollout of the BuildNet E-Building Exchange, and the acceptance of the BuildNet E-Building Exchange by any of BuildNet's existing software customers or any new customers. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in BuildNet's SEC filings, including its Registration Statement on Form S-1.

(c) 2000

    CONTACT: BuildNet, Inc.          Beazer Homes USA, Inc.
             John D. Wagner          David Weiss
             919/941-4014            404/250-3420
             jwagner@buildnet.com    dweiss@beazer.com
             or
             Schwartz Communications, Inc.
             Sarah Marletta
             781/684-0770
             buildnet@schwartz-pr.com