In 2005, BMC Construction continued to successfully implement our strategy of creating an integrated, multi-trade residential construction company serving high-volume production homebuilders. We have established ourselves as a leader in the construction services market and continue to evolve and strengthen our business. The benefits we offer to our customers — efficient labor management and focus on quality, supported by our scale, geographic reach and financial strength — are unmatched in the industry and enable our large national homebuilder customers to be more productive. BMC Construction’s outstanding performance in 2005 was a combination of three important factors: (1) external growth through acquisitions, (2) strong organic growth in key markets and (3) continued stre ngth in homebuilding activity. Capitalizing on these trends, BMC Construction set new records in 2005, surpassing $1 billion in sales for the first time in its history. External growth was a key area of focus for BMC Construction in 2005 and resulted in five new investments. To ensure a good cultural fit, we looked for companies where the management teams shared our belief in the importance of respecting employees and valuing customer relationships and where the leadership shared our vision for the future of the industry. Additionally, the companies we selected to join our family had excellent reputations for quality, dependable performance and responsive service. Our acquisitions for the year were in line with our overall objectives — entry into new markets as well as expansion and the addition of new services in our existing markets. Entered New Markets: At the beginning of the year we acquired a 51% interest in RCI Construction, which marked our entry into the Chicago area and provided a foundation to grow our framing services in this attractive homebuilding market. In October, we acquired HnR Framing Systems and the assets of Home Building Components, which provide framing services and manufactured building components to high-volume production homebuilders in San Diego. These acquisitions extended our presence into a new area in California. Added New Services in Existing Markets: Arizona is an attractive market for high-volume production homebuilders, and we made two very substantial additions to our operations there during the year. In 2005, we invested in Riggs Plumbing, which provides turnkey rough and finish plumbing installation services that we are integrating with our framing and concrete trades. In July, we acquired a 51% interest in BBP Companies, which provides concrete foundation services and complements our framing and plumbing services in the greater Phoenix and Tucson markets. We believe both Riggs and BBP will be integral parts of our overall service package in the Southwest. Additionally, in September we acquired the assets of The Campbell Companies, which provide concrete and plumbing services in the Las Vegas and Southern California markets. In January 2006, we acquired two additional framing companies, MWB Building Contractors and Benedetti Construction Management, which further strengthen our existing trades while also allowing us to enter a new market. Benedetti is the largest framing company in Palm Springs and the low desert area of Southern California, and MWB strengthens our operations in Northern California while also extending our construction services capabilities to the Reno, Nevada market. In 2005, we continued to generate significant growth as we extended our geographic reach and deepened our market penetration. We successfully completed and integrated major acquisitions designed to position us for continued growth in our key markets. While expanding through external growth, we also strengthened our management team to better execute our overall strategy. We will continue to work toward our vision of being a superior construction services business through disciplined external expansion and internal integration. As we continue to grow our reputation as the provider of choice for high-volume production homebuilders, we will focus on consistently providing the high-quality services that our customers have come to expect.